Oracle (NYSE:ORCL) Trading Down 6.2% – Time to Sell?

Oracle Corporation (NYSE:ORCL)’s stock price dropped 6.2% during trading on Thursday . The company traded as low as $123.66 and last traded at $124.27. 54,237,413 shares traded hands during mid-day trading, an increase of 87% from the average session volume of 29,017,879 shares. The stock had previously closed at $132.49.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Some analysts remain bullish, arguing Oracle’s huge cloud backlog could eventually translate into much stronger revenue and that the stock may be oversold after its steep decline. Oracle Stock Crash Erases $213 Billion from Billionaire Founder Larry Ellison’s Net Worth
• Positive Sentiment: Oracle’s database and multicloud AI businesses continue to show strong growth momentum, suggesting the long-term AI demand story is still intact. Can Oracle’s Database Business Sustain Long-Term Margins?
• Neutral Sentiment: Commentary from Jim Cramer and other market writers added to the volatility, with some calling Oracle a cautionary tale while others argued the selloff may be overdone. Jim Cramer Says Oracle Is “Going Down” and Avoid Every Liquor Stock. Here’s What He’d Buy Instead
• Negative Sentiment: New Mexico blocked the pipeline for Oracle’s 2.5 GW data-center project, increasing the chance of delays and adding uncertainty to its AI infrastructure expansion. New Mexico Blocks Pipeline for Oracle’s (ORCL) 2.5 GW Data Center Project
• Negative Sentiment: Investors are worried Oracle’s AI spending spree is being financed with too much debt, pushing the company’s credit profile close to junk territory. Oracle’s (ORCL) AI Spending Spree Pushes Its Credit Rating Near Junk
• Negative Sentiment: Oracle’s stock has also been hit by broader articles emphasizing that the company is falling fast as markets question whether the AI growth story can justify the spending and financing risks. Oracle Stock Slides To 52-Week Low Amid AI Spending Fears

Analyst Ratings Changes

A number of analysts have issued reports on ORCL shares. DA Davidson raised their price target on Oracle from $200.00 to $225.00 and gave the stock a “buy” rating in a research note on Thursday, June 11th. BMO Capital Markets upped their price objective on shares of Oracle from $200.00 to $220.00 and gave the company an “outperform” rating in a research note on Thursday, June 11th. Citigroup reiterated a “market outperform” rating on shares of Oracle in a report on Thursday, June 11th. Wolfe Research reissued an “outperform” rating and issued a $225.00 target price on shares of Oracle in a research report on Thursday, June 11th. Finally, Royal Bank Of Canada reissued a “sector perform” rating and issued a $190.00 target price on shares of Oracle in a research report on Thursday, June 11th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $268.27.

Oracle Trading Up 1.8%

The firm has a fifty day moving average of $177.30 and a 200-day moving average of $169.46. The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.12 and a current ratio of 1.12. The stock has a market capitalization of $364.32 billion, a price-to-earnings ratio of 21.69, a P/E/G ratio of 0.78 and a beta of 1.72.

Oracle (NYSE:ORCL) last issued its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, topping analysts’ consensus estimates of $1.96 by $0.15. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The company had revenue of $19.18 billion for the quarter, compared to analysts’ expectations of $19.10 billion. During the same quarter in the previous year, the firm posted $1.70 earnings per share. The firm’s quarterly revenue was up 20.6% on a year-over-year basis. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, equities analysts predict that Oracle Corporation will post 6.47 earnings per share for the current fiscal year.

Oracle Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be given a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 1.6%. Oracle’s payout ratio is 34.31%.

Insiders Place Their Bets

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of the company’s stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total value of $63,664,000.00. Following the completion of the transaction, the insider owned 400,000 shares in the company, valued at $63,664,000. This represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. DDD Partners LLC bought a new stake in Oracle in the 4th quarter valued at $1,677,000. New Mexico Educational Retirement Board raised its stake in shares of Oracle by 4.2% in the 4th quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider’s stock valued at $14,928,000 after buying an additional 3,100 shares in the last quarter. Planning Center Inc. lifted its holdings in shares of Oracle by 142.2% during the 4th quarter. Planning Center Inc. now owns 6,376 shares of the enterprise software provider’s stock worth $1,243,000 after acquiring an additional 3,743 shares during the period. Wealth Enhancement Advisory Services LLC boosted its position in shares of Oracle by 13.0% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 917,304 shares of the enterprise software provider’s stock valued at $178,001,000 after acquiring an additional 105,368 shares in the last quarter. Finally, U.S. Capital Wealth Advisors LLC boosted its position in shares of Oracle by 15.4% during the 4th quarter. U.S. Capital Wealth Advisors LLC now owns 42,616 shares of the enterprise software provider’s stock valued at $8,306,000 after acquiring an additional 5,692 shares in the last quarter. 42.44% of the stock is owned by institutional investors and hedge funds.

About Oracle

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.