Oracle Corp. (ORCL) Rating Lowered to Sell at Zacks Investment Research
Oracle Corp. (NYSE:ORCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Oracle's first-quarter 2017 results failed to impress us. Although cloud revenue growth was strong, weak on-premise software revenues dragged down the results. Oracle is in the middle of a business transition from licensing to cloud which will be accretive to long term growth. However, it is a drag on the financials at present. Adding to that, Oracle seems to have hit a bad patch as far as litigation is concerned. Earlier this year, it lost a JAVA APIs lawsuit against Alphabet’s Google and another Itanium software lawsuit against HPE. Although, Oracle is set to to re-appeal against these verdicts, the adverse decisions will remain an overhang on the stock. Nevertheless, the ongoing momentum at SaaS and PaaS provides signficant growth opportunity. The introduction of Generation2 IaaS data centers are expected to improve Oracle’s competitive prowess against Amazon Web Services and will drive market share going ahead.”
A number of other brokerages have also weighed in on ORCL. Cowen and Company set a $46.00 price objective on Oracle Corp. and gave the stock a “buy” rating in a research report on Friday, September 16th. BTIG Research reiterated a “buy” rating and issued a $44.00 price objective on shares of Oracle Corp. in a research report on Friday, June 17th. Vetr lowered Oracle Corp. from a “strong-buy” rating to a “buy” rating and set a $45.58 price objective on the stock. in a research report on Wednesday, September 7th. DA Davidson started coverage on Oracle Corp. in a research report on Monday, August 8th. They issued a “buy” rating on the stock. Finally, Morgan Stanley reiterated a “hold” rating and issued a $41.00 price objective on shares of Oracle Corp. in a research report on Friday, September 16th. Three research analysts have rated the stock with a sell rating, sixteen have assigned a hold rating, twenty-five have issued a buy rating and one has assigned a strong buy rating to the stock. The stock currently has an average rating of “Buy” and an average price target of $44.88.
Shares of Oracle Corp. (NYSE:ORCL) opened at 39.51 on Tuesday. The stock has a market capitalization of $162.74 billion, a price-to-earnings ratio of 18.77 and a beta of 1.08. The company has a 50-day moving average price of $40.83 and a 200-day moving average price of $40.35. Oracle Corp. has a 52-week low of $33.13 and a 52-week high of $42.00.
Oracle Corp. (NYSE:ORCL) last announced its quarterly earnings results on Thursday, September 15th. The enterprise software provider reported $0.55 EPS for the quarter, missing the Zacks’ consensus estimate of $0.58 by $0.03. The company earned $8.60 billion during the quarter. Oracle Corp. had a return on equity of 22.10% and a net margin of 24.16%. Oracle Corp.’s revenue for the quarter was up 1.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.53 earnings per share. On average, equities analysts anticipate that Oracle Corp. will post $2.64 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 26th. Stockholders of record on Wednesday, October 12th will be given a $0.15 dividend. The ex-dividend date is Friday, October 7th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.52%. Oracle Corp.’s payout ratio is 28.57%.
In other news, EVP John F. Fowler sold 500,000 shares of the firm’s stock in a transaction on Thursday, August 11th. The stock was sold at an average price of $41.17, for a total value of $20,585,000.00. Following the completion of the sale, the executive vice president now owns 119,645 shares of the company’s stock, valued at approximately $4,925,784.65. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Hector Garcia-Molina sold 3,750 shares of the firm’s stock in a transaction on Monday, August 15th. The stock was sold at an average price of $41.12, for a total value of $154,200.00. Following the completion of the sale, the director now directly owns 8,281 shares of the company’s stock, valued at approximately $340,514.72. The disclosure for this sale can be found here. 28.00% of the stock is owned by insiders.
Several hedge funds have recently bought and sold shares of ORCL. Check Capital Management Inc. CA boosted its stake in Oracle Corp. by 1.8% in the second quarter. Check Capital Management Inc. CA now owns 714,129 shares of the enterprise software provider’s stock worth $29,229,000 after buying an additional 12,676 shares during the last quarter. DAVENPORT & Co LLC boosted its stake in Oracle Corp. by 8.1% in the second quarter. DAVENPORT & Co LLC now owns 852,620 shares of the enterprise software provider’s stock worth $34,898,000 after buying an additional 64,091 shares during the last quarter. National Pension Service boosted its stake in Oracle Corp. by 4.2% in the first quarter. National Pension Service now owns 1,765,267 shares of the enterprise software provider’s stock worth $72,217,000 after buying an additional 71,804 shares during the last quarter. AXA boosted its stake in Oracle Corp. by 0.3% in the first quarter. AXA now owns 1,814,706 shares of the enterprise software provider’s stock worth $74,240,000 after buying an additional 4,952 shares during the last quarter. Finally, Factory Mutual Insurance Co. boosted its stake in Oracle Corp. by 22.3% in the first quarter. Factory Mutual Insurance Co. now owns 2,150,920 shares of the enterprise software provider’s stock worth $87,994,000 after buying an additional 392,000 shares during the last quarter. 58.00% of the stock is owned by hedge funds and other institutional investors.
About Oracle Corp.
Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support.
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