Oracle (NYSE:ORCL) Shares Gap Down – Should You Sell?

Shares of Oracle Corporation (NYSE:ORCL) gapped down before the market opened on Friday . The stock had previously closed at $178.18, but opened at $172.62. Oracle shares last traded at $175.6340, with a volume of 5,141,560 shares traded.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle is part of the consortium that finalized the U.S. spin-off of TikTok, taking a minority stake and the role of Trusted Technology Partner — this secures a large, long‑duration cloud customer for Oracle Cloud Infrastructure and validates recent capital spending on AI/data centers. TikTok reaches deal for new US joint venture to avoid American ban
• Positive Sentiment: Third‑party research shows accelerating enterprise adoption of Oracle Cloud Infrastructure (OCI), supporting a longer‑term cloud revenue growth thesis independent of the TikTok deal. U.S. Enterprises Are Increasing Adopting Oracle Cloud Infrastructure
• Neutral Sentiment: Note for ticker clarity: a separate small Canadian issuer named Oracle Commodity Holding (TSXV: ORCL / OTCQB: ORLCF) announced a C$100,000 private placement — not related to Oracle Corporation. Retail investors should avoid ticker confusion. Oracle Commodity Holding Announces a $100,000 Private Placement
• Negative Sentiment: Bondholders have filed claims and notice-of-class-action campaigns allege Oracle didn’t fully disclose the extent of debt tied to its AI/data‑center buildout — legal risk and refinancing uncertainty are pressuring the stock. ORCL Investors Have Opportunity to Lead Oracle Corporation Securities Lawsuit
• Negative Sentiment: Prominent investor Michael Burry has placed bets against Oracle, adding headline risk and signaling high‑profile bearish conviction that can amplify short‑term selling pressure. Michael Burry Bets Against Oracle — Should You Sell ORCL Stock Now?
• Negative Sentiment: Reports and analyst commentary flag investor concern about Oracle’s cash burn and the scale of debt being used to fund its AI/data‑center strategy; that disclosure-driven volatility caused sharp intraday moves recently. Oracle (ORCL) Is Down 11.1% After AI Debt Disclosure Lawsuit Raises Questions About Funding Model
• Negative Sentiment: Market reports say demand for debt tied to Oracle’s big “Stargate” / data‑center financing has cooled (JPMorgan saw slower investor interest), highlighting funding risk for continued rapid expansion. Wall Street is losing its appetite for Oracle’s data center debt
• Negative Sentiment: Coverage noting the stock’s steep decline from its October highs (nearly a 50% market‑cap drop) is amplifying momentum selling and bearish sentiment — reinforcing the impact of the legal/financing headlines. Oracle stock has crashed: Is it a buy after the $424 billion wipeout?

Analysts Set New Price Targets

A number of brokerages have issued reports on ORCL. Piper Sandler lowered their price objective on Oracle from $380.00 to $290.00 and set an “overweight” rating for the company in a research note on Thursday, December 11th. Stifel Nicolaus cut their price objective on Oracle from $350.00 to $275.00 and set a “buy” rating for the company in a report on Thursday, December 11th. The Goldman Sachs Group raised Oracle to a “strong-buy” rating in a research report on Monday, January 12th. KeyCorp decreased their price target on shares of Oracle from $350.00 to $300.00 and set an “overweight” rating on the stock in a research report on Thursday, December 11th. Finally, Oppenheimer reissued a “market perform” rating on shares of Oracle in a research report on Thursday, December 11th. Three research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Oracle presently has a consensus rating of “Moderate Buy” and a consensus target price of $300.46.

Oracle Trading Up 0.7%

The stock has a market cap of $515.71 billion, a P/E ratio of 33.74, a price-to-earnings-growth ratio of 1.53 and a beta of 1.65. The stock’s 50-day moving average is $199.28 and its two-hundred day moving average is $239.90. The company has a debt-to-equity ratio of 3.28, a current ratio of 0.91 and a quick ratio of 0.91.

Oracle (NYSE:ORCL) last announced its quarterly earnings results on Wednesday, December 10th. The enterprise software provider reported $2.26 EPS for the quarter, topping the consensus estimate of $1.64 by $0.62. Oracle had a net margin of 25.28% and a return on equity of 70.60%. The business had revenue of $16.06 billion for the quarter, compared to analysts’ expectations of $16.19 billion. During the same quarter in the previous year, the company earned $1.47 EPS. The business’s quarterly revenue was up 14.2% compared to the same quarter last year. Equities research analysts anticipate that Oracle Corporation will post 5 EPS for the current year.

Oracle Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 23rd. Investors of record on Friday, January 9th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Friday, January 9th. This represents a $2.00 dividend on an annualized basis and a yield of 1.1%. Oracle’s dividend payout ratio is 37.59%.

Insider Transactions at Oracle

In other news, Director Naomi O. Seligman sold 2,223 shares of the stock in a transaction that occurred on Tuesday, December 23rd. The shares were sold at an average price of $196.61, for a total transaction of $437,064.03. Following the transaction, the director directly owned 25,596 shares in the company, valued at approximately $5,032,429.56. This trade represents a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Jeffrey Berg sold 49,365 shares of Oracle stock in a transaction on Tuesday, October 28th. The shares were sold at an average price of $283.02, for a total value of $13,971,282.30. Following the completion of the transaction, the director owned 151,999 shares in the company, valued at $43,018,756.98. This represents a 24.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 111,588 shares of company stock worth $26,108,046. Insiders own 40.90% of the company’s stock.

Hedge Funds Weigh In On Oracle

Large investors have recently bought and sold shares of the business. FSA Wealth Management LLC purchased a new position in shares of Oracle in the third quarter valued at approximately $28,000. Darwin Wealth Management LLC boosted its holdings in Oracle by 130.0% in the 3rd quarter. Darwin Wealth Management LLC now owns 115 shares of the enterprise software provider’s stock valued at $32,000 after purchasing an additional 65 shares during the last quarter. Mpwm Advisory Solutions LLC increased its holdings in shares of Oracle by 76.9% during the 3rd quarter. Mpwm Advisory Solutions LLC now owns 115 shares of the enterprise software provider’s stock worth $32,000 after buying an additional 50 shares during the last quarter. Turning Point Benefit Group Inc. purchased a new position in shares of Oracle during the 3rd quarter worth $35,000. Finally, Winnow Wealth LLC purchased a new stake in Oracle in the second quarter valued at approximately $28,000. Institutional investors and hedge funds own 42.44% of the company’s stock.

Oracle Company Profile

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.