Oracle (NYSE:ORCL) Sets New 12-Month Low – Time to Sell?

Oracle Corporation (NYSE:ORCL) shares reached a new 52-week low on Thursday. The company traded as low as $111.66 and last traded at $114.95, with a volume of 21,953,915 shares changing hands. The stock had previously closed at $123.73.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle received the strongest valuation grade among seven major technology companies in a comparison following the sector selloff, potentially drawing interest from investors looking for relative value. Article: Oracle beats Microsoft and Amazon on a key Wall Street metric
• Neutral Sentiment: Scotiabank lowered its fiscal 2027 EPS estimate to $6.63 from $6.73, but kept its Sector Outperform rating and $205 price target. The estimate cut tempers, but does not reverse, the analyst’s positive stance. Article: Scotiabank revises Oracle EPS estimate
• Neutral Sentiment: Oracle’s annual stockholder meeting is scheduled for November 18; the announcement did not identify a new business or earnings development. Article: Oracle’s annual meeting of stockholders
• Negative Sentiment: Microsoft is reportedly winding down its arrangement to rent AI computing capacity from Oracle. The news adds to concern that major customers may reassess AI infrastructure spending and could weigh on expectations for Oracle’s cloud growth. Article: Microsoft is winding down Oracle deal to rent AI cloud capacity
• Negative Sentiment: Broader doubts about the AI data-center build-out are also pressuring sentiment. Reports cite possible changes to OpenAI’s capacity plans, political scrutiny of data-center construction, and debt tied to a Stargate project—risks that could challenge the expected returns on Oracle’s substantial infrastructure investment. Article: OpenAI weighs smaller data-center plans

Wall Street Analyst Weigh In

ORCL has been the subject of a number of research analyst reports. Melius Research set a $170.00 price objective on shares of Oracle in a research report on Thursday, October 29th. Piper Sandler restated an “overweight” rating and set a $225.00 target price on shares of Oracle in a research note on Thursday, October 29th. BTIG Research initiated coverage on shares of Oracle in a research note on Monday. They issued a “buy” rating on the stock. Barclays increased their price target on shares of Oracle from $250.00 to $252.00 and gave the company an “overweight” rating in a report on Friday, September 11th. Finally, Morgan Stanley downgraded shares of Oracle from a “positive” rating to an “underweight” rating in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $249.27.

Oracle Stock Performance

The company has a debt-to-equity ratio of 1.89, a current ratio of 1.17 and a quick ratio of 1.17. The stock’s 50-day moving average price is $139.11 and its 200-day moving average price is $155.40. The company has a market cap of $350.64 billion, a P/E ratio of 18.18, a PEG ratio of 0.83 and a beta of 1.79.

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

Oracle Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Friday, October 9th were given a dividend of $0.50 per share. 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 is currently 31.35%.

Insiders Place Their Bets

In related news, Director Stephen H. Rusckowski bought 25,000 shares of Oracle stock in a transaction dated Tuesday, September 29th. The shares were bought at an average cost of $139.35 per share, with a total value of $3,483,750.00. Following the acquisition, the director owned 25,390 shares in the company, valued at $3,538,096.50. This trade represents a 6,410.26% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Maria Smith sold 2,631 shares of the business’s stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total value of $399,122.70. Following the completion of the transaction, the executive vice president directly owned 64,357 shares of the company’s stock, valued at approximately $9,762,956.90. This trade represents a 3.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 36,075 shares of company stock worth $5,342,123 in the last 90 days. Company insiders own 38.40% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Oracle by 0.8% during the 2nd 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 worth $2,151,395,000 after buying an additional 123,294 shares during the last quarter. Fisher Asset Management LLC grew its holdings in shares of Oracle by 3.1% during the 3rd quarter. Fisher Asset Management LLC now owns 13,670,982 shares of the enterprise software provider’s stock valued at $1,877,026,000 after purchasing an additional 409,531 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Oracle by 3.0% during the 1st quarter. Bank of New York Mellon Corp now owns 13,251,059 shares of the enterprise software provider’s stock valued at $1,949,363,000 after purchasing an additional 384,984 shares during the last quarter. Amundi increased its position in Oracle by 1.5% during the 2nd quarter. Amundi now owns 9,878,184 shares of the enterprise software provider’s stock worth $1,447,648,000 after purchasing an additional 144,087 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its position in Oracle by 1.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 8,586,492 shares of the enterprise software provider’s stock worth $1,262,827,000 after purchasing an additional 147,048 shares in the last quarter. 42.44% of the stock is currently owned by institutional investors and hedge funds.

Oracle Company Profile

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.

Founded in 1977 as Software Development Laboratories, Oracle serves businesses and public-sector organizations across geographies worldwide.