Oracle Corporation (ORCL) – What Are Investment Firms Thinking About This Stock?

Shares of Oracle Corporation (NYSE:ORCL) have been given a consensus rating of “Moderate Buy” by the forty-six ratings firms that are covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating, thirty-seven have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month target price among analysts that have covered the stock in the last year is $249.27.

A number of equities analysts have commented on ORCL shares. CLSA initiated coverage on shares of Oracle in a report on Monday, July 20th. They issued a “hold” rating and a $145.00 price objective for the company. BMO Capital Markets dropped their target price on shares of Oracle from $220.00 to $195.00 and set an “outperform” rating on the stock in a report on Friday, September 11th. UBS Group raised their price target on shares of Oracle from $245.00 to $250.00 and gave the stock a “buy” rating in a research report on Friday, September 11th. Oppenheimer reaffirmed an “outperform” rating and issued a $275.00 price target on shares of Oracle in a report on Thursday, October 29th. Finally, President Capital lowered their price objective on shares of Oracle from $360.00 to $300.00 and set an “overweight” rating for the company in a research report on Tuesday, July 14th.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle broke ground on its future Nashville global headquarters, a long-term investment intended to support growth in cloud, AI and healthcare and create thousands of jobs. Oracle Nashville headquarters announcement
• Positive Sentiment: The company launched AI-assisted treasury and customer analytics applications for financial institutions, adding to its cloud and AI product offerings. Oracle financial analytics announcement
• Neutral Sentiment: Oracle says renewed rentals of older GPUs were priced at a premium, suggesting some continued demand for its existing AI capacity; however, this does not offset uncertainty around specific customer contracts. Report on GPU renewals and Microsoft
• Negative Sentiment: Reports said Oracle lost an estimated $7 billion Tencent chip-leasing deal and that Microsoft is winding down an AI-computing arrangement, reportedly because Oracle’s older Nvidia chips no longer meet Microsoft’s requirements. These developments raise questions about infrastructure demand and Oracle’s ability to secure customers for its planned capacity. Report on Tencent and Microsoft contracts
• Negative Sentiment: Commentary highlighted concentration and financing risks: Oracle’s AI backlog is said to rely heavily on OpenAI, while its aggressive data-center spending increases exposure to debt, project execution and potential AI-market setbacks. Analysis of Oracle’s balance sheet and AI contracts

Oracle Price Performance

Shares of ORCL opened at $117.87 on Wednesday. The firm has a market cap of $356.42 billion, a price-to-earnings ratio of 18.48, a PEG ratio of 0.84 and a beta of 1.79. The stock has a 50 day moving average of $137.85 and a 200-day moving average of $154.83. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 1.89. Oracle has a 52 week low of $109.21 and a 52 week high of $250.25.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, beating analysts’ consensus estimates of $1.74 by $0.18. The business had revenue of $19.34 billion during the quarter, compared to the consensus estimate of $19.13 billion. Oracle had a return on equity of 48.85% and a net margin of 26.36%. The business’s quarterly revenue was up 29.6% on a year-over-year basis. During the same period in the previous year, the business earned $1.47 EPS. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. As a group, analysts forecast that Oracle will post 6.71 EPS for the current year.

Oracle Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 9th were issued a $0.50 dividend. The ex-dividend date of this dividend was Friday, October 9th. This represents a $2.00 dividend on an annualized basis and a yield of 1.7%. Oracle’s dividend payout ratio (DPR) is currently 31.35%.

Insider Buying and Selling at Oracle

In other Oracle news, CEO Michael Sicilia sold 22,562 shares of Oracle stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $151.59, for a total value of $3,420,173.58. Following the completion of the transaction, the chief executive officer directly owned 182,929 shares in the company, valued at $27,730,207.11. The trade was a 10.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Maria Smith sold 2,631 shares of the company’s stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total value of $399,122.70. Following the transaction, the executive vice president directly owned 64,357 shares of the company’s stock, valued at $9,762,956.90. This trade represents a 3.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 36,075 shares of company stock worth $5,342,123 over the last ninety days. Company insiders own 38.40% of the company’s stock.

Institutional Investors Weigh In On Oracle

Several large investors have recently added to or reduced their stakes in ORCL. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Oracle by 0.8% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 14,680,278 shares of the enterprise software provider’s stock valued at $2,151,395,000 after acquiring an additional 123,294 shares during the period. Bank of New York Mellon Corp grew its position in shares of Oracle by 3.0% during the first quarter. Bank of New York Mellon Corp now owns 13,251,059 shares of the enterprise software provider’s stock worth $1,949,363,000 after acquiring an additional 384,984 shares during the last quarter. Fisher Asset Management LLC increased its holdings in shares of Oracle by 3.1% in the 3rd quarter. Fisher Asset Management LLC now owns 13,670,982 shares of the enterprise software provider’s stock worth $1,877,026,000 after acquiring an additional 409,531 shares during the period. Amundi increased its holdings in shares of Oracle by 1.5% in the 2nd quarter. Amundi now owns 9,878,184 shares of the enterprise software provider’s stock worth $1,447,648,000 after acquiring an additional 144,087 shares during the period. Finally, First Eagle Investment Management LLC increased its holdings in shares of Oracle by 17.8% in the 3rd quarter. First Eagle Investment Management LLC now owns 10,029,416 shares of the enterprise software provider’s stock worth $1,377,039,000 after acquiring an additional 1,512,538 shares during the period. 42.44% of the stock is owned by institutional investors and hedge funds.

About Oracle

Oracle Corporation is a technology company that develops and provides database software, cloud services, and enterprise applications. Its products help organizations manage data, run business operations, and build and deploy applications. Oracle’s offerings include Oracle Database, Oracle Cloud Infrastructure, and cloud-based applications for functions such as finance, human resources, supply chain management, and customer experience. The company also provides software support, consulting, and related services.