Oracle (NYSE:ORCL) Trading Down 1.6% - Here's What Happened

Shares of Oracle Corporation (NYSE:ORCL) saw a decline of 1.6% during mid-day trading on Friday. The stock reached a low of $172.11 and was last seen trading at $172.44. Approximately 2,341,324 shares changed hands, which is a significant decline of 72% compared to the average daily volume of around 8,373,735 shares. Prior to this, the stock closed at $175.32.

Analyst Ratings

Several analysts have recently provided insights regarding Oracle’s stock. JMP Securities maintained a "market outperform" rating and set a price target of $205.00 for Oracle shares in a report earlier this week. Evercore ISI raised their price target from $190.00 to $200.00, affirming an "outperform" rating. On September 10th, Oppenheimer reiterated a "market perform" evaluation for ORCL stock. Furthermore, Jefferies Financial Group increased its target price from $190.00 to $220.00 and assigned a "buy" rating in a recent report. BNP Paribas also upgraded Oracle to a "strong-buy" status. Overall, twelve analysts have given Oracle a hold rating, while seventeen have rated it as a buy, with one issuing a strong buy. According to MarketBeat.com, the consensus rating for Oracle is a "Moderate Buy" with an average price target of $183.63.

Stock Performance

The company currently boasts a market capitalization of approximately $481.97 billion. Its price-to-earnings (PE) ratio stands at 42.16, with a price-to-earnings-growth (PEG) ratio of 3.32 and a beta of 1.03. Oracle has a debt-to-equity ratio of 5.65 and a current ratio of 0.81, alongside a quick ratio of 0.72. The fifty-day and two-hundred-day moving averages are $180.36 and $155.36, respectively.

Quarterly Earnings Results

On December 9th, Oracle reported its latest quarterly earnings. The enterprise software provider recorded earnings per share (EPS) of $1.47, slightly missing analysts' expectations, which were set at $1.48. The company's return on equity was a remarkable 133.25%, with a net margin of 21.16%. Total revenue for the quarter was $14.06 billion, which also fell short of the forecasted $14.12 billion. This demonstrates an increase of 8.6% in revenue compared to the same quarter last year. Analysts predict that Oracle will achieve an EPS of 5.17 for the current year.

Dividend Information

Recently, Oracle announced a quarterly dividend to be paid on January 9th. Shareholders on record as of January 23rd will receive a dividend of $0.40 per share. The ex-dividend date for this payment is January 9th. This results in an annualized dividend yield of 0.93%, with a payout ratio currently at 39.12%.

Insider Trading Activity

In related developments, EVP Maria Smith sold 6,320 shares of Oracle on September 16th at an average price of $165.00, totaling around $1,042,800.00. Post-sale, Smith holds 42,889 shares valued at approximately $7,076,685, marking a 12.84% reduction in her position. Insider trading information indicates that 42.20% of the stock is owned by company insiders.

Institutional Investment Trends

Recent movements among institutional investors have seen significant buying and selling of Oracle shares. International Assets Investment Management LLC increased its stake by an astonishing 16,023.4% in the third quarter, acquiring over 2 million additional shares. Franklin Resources Inc. boosted its holdings by 11.6%, owning 18,480,384 shares now worth approximately $3.37 billion. State Street Corp also increased its position by 2.7%, while Altshuler Shaham Ltd raised its holdings impressively. These transactions reflect continued institutional interest, with institutions collectively owning 42.44% of Oracle’s stock.

About Oracle Corporation

Oracle Corporation specializes in providing a wide range of information technology products and services globally. Its comprehensive offerings include cloud software solutions, such as Oracle Fusion cloud ERP, enterprise performance management, supply chain management, and healthcare solutions through Oracle Cerner, amongst others.

Conclusion

As Oracle shares have experienced recent fluctuations, investors are closely monitoring the situation. With various analysts maintaining a generally positive outlook, the decision to hold or sell may hinge on upcoming market movements and further updates from the company.

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