Oracle (NYSE:ORCL) Stock Price Down 1.9% – Should You Sell?

Oracle Corporation (NYSE:ORCL)’s stock price fell 1.9% during mid-day trading on Wednesday. The company traded as low as $121.78 and last traded at $123.8180. 111,415,591 shares changed hands during trading, an increase of 268% from the average daily volume of 30,288,039 shares. The stock had previously closed at $126.19.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle reiterated ambitious growth goals, including a target of at least $225 billion in revenue by 2030. Bullish analysts argue that its AI-cloud expansion could support substantial long-term growth, though execution and financing remain key risks. Oracle selloff and long-term outlook
• Positive Sentiment: Oracle customer Chubu Electric Power Grid reached 10 million deployed smart meters using Oracle’s utilities software, demonstrating an established enterprise use case, although the announcement’s near-term financial impact is unclear. Chubu Electric smart meter milestone
• Neutral Sentiment: Oracle and Credo are working with the Open Compute Project community to standardize optical-transceiver telemetry. The effort may support data-center operations, but no immediate revenue impact was disclosed. Credo and Oracle telemetry standardization
• Negative Sentiment: Oracle reportedly scrapped a five-year, roughly $7 billion chip-leasing arrangement with Tencent after U.S. government pushback. The deal could have provided access to as many as 100,000 AI chips, removing a potential source of business and underscoring regulatory limits on serving Chinese AI customers. Reuters report on the Tencent deal
• Negative Sentiment: Investors are also weighing Oracle’s $20 billion financing for its AI buildout: a $10 billion share sale and $10 billion in notes with coupons reaching 8.65%. The equity issuance dilutes existing shareholders, while the borrowing adds substantial financing costs and reinforces concerns about the capital required before AI investments generate returns. Oracle financing and investor concerns

Wall Street Analyst Weigh In

A number of research firms have weighed in on ORCL. Wells Fargo & Company reduced their price target on Oracle from $280.00 to $250.00 and set an “overweight” rating for the company in a research report on Monday, October 26th. CLSA assumed coverage on shares of Oracle in a report on Monday, July 20th. They issued a “hold” rating and a $145.00 price objective on the stock. TD Cowen reissued a “buy” rating and set a $240.00 price target on shares of Oracle in a research report on Thursday, October 29th. Piper Sandler restated an “overweight” rating and set a $225.00 price objective on shares of Oracle in a research note on Thursday, October 29th. Finally, KeyCorp set a $285.00 price target on Oracle in a report on Friday, September 11th. One analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $249.27.

Oracle Stock Down 1.9%

The stock has a market capitalization of $374.39 billion, a price-to-earnings ratio of 19.41, a price-to-earnings-growth ratio of 0.83 and a beta of 1.79. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 1.89. The stock has a 50 day moving average price of $140.93 and a 200 day moving average price of $156.43.

Oracle (NYSE:ORCL) last issued 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 business had revenue of $19.34 billion during the quarter, compared to analyst estimates of $19.13 billion. During the same quarter last year, the business earned $1.47 EPS. The firm’s quarterly revenue was up 29.6% on a year-over-year basis. 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 Corporation will post 6.72 EPS for the current year.

Oracle Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 9th were issued a dividend of $0.50 per share. The ex-dividend date was Friday, October 9th. This represents a $2.00 annualized dividend and a yield of 1.6%. Oracle’s dividend payout ratio (DPR) is presently 31.35%.

Insider Activity

In other Oracle news, EVP Maria Smith sold 2,631 shares of the company’s stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total transaction of $399,122.70. Following the sale, the executive vice president owned 64,357 shares of the company’s stock, valued at approximately $9,762,956.90. This represents a 3.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Michael Sicilia sold 22,562 shares of Oracle stock in a transaction dated 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 of the company’s stock, valued at approximately $27,730,207.11. This trade represents a 10.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 36,075 shares of company stock valued at $5,342,123. 38.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Oracle

Several institutional investors have recently added to or reduced their stakes in ORCL. Sherman Asset Management Inc. increased its stake in Oracle by 5.5% in the 1st quarter. Sherman Asset Management Inc. now owns 1,054 shares of the enterprise software provider’s stock worth $155,000 after acquiring an additional 55 shares during the last quarter. Gould Asset Management LLC CA boosted its position in shares of Oracle by 2.0% during the 1st quarter. Gould Asset Management LLC CA now owns 3,172 shares of the enterprise software provider’s stock valued at $467,000 after acquiring an additional 62 shares during the last quarter. One Charles Private Wealth Services LLC boosted its position in shares of Oracle by 1.6% during the 1st quarter. One Charles Private Wealth Services LLC now owns 3,859 shares of the enterprise software provider’s stock valued at $568,000 after acquiring an additional 62 shares during the last quarter. Main Street Group LTD grew its holdings in shares of Oracle by 3.9% in the first quarter. Main Street Group LTD now owns 1,662 shares of the enterprise software provider’s stock valued at $245,000 after purchasing an additional 63 shares in the last quarter. Finally, Capstone Financial Advisors Inc. increased its position in Oracle by 3.6% in the second quarter. Capstone Financial Advisors Inc. now owns 1,809 shares of the enterprise software provider’s stock worth $265,000 after purchasing an additional 63 shares during the last quarter. 42.44% of the stock is owned by institutional investors and hedge funds.

About Oracle

Oracle Corporation (NYSE: ORCL) is a global technology company that develops enterprise software, cloud infrastructure and database technologies. Its products help organizations store, manage, analyze and secure data, while supporting business operations across industries and geographies.

The company’s offerings include Oracle Database, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud-based applications. These applications serve functions such as enterprise resource planning, financial management, human resources, supply-chain management, customer experience and industry-specific operations.