Oracle (NYSE:ORCL) Trading Down 4.6% – Should You Sell?

Oracle Corporation (NYSE:ORCL)’s share price fell 4.6% on Thursday . The stock traded as low as $119.44 and last traded at $120.0920. Approximately 29,206,781 shares traded hands during mid-day trading, an increase of 0% from the average daily volume of 29,090,865 shares. The stock had previously closed at $125.84.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Some analysts still see Oracle as a buy, arguing the recent decline has made the stock attractive relative to its AI infrastructure opportunities and backlog growth. Oracle stock is still a buy: Analyst outlines his bull case
• Positive Sentiment: Oracle is still being cited as a key player in healthcare IT and AI-driven digital transformation, which supports the long-term growth narrative. Global Healthcare IT Market to Reach $961.26 Billion by 2030, Driven by AI, EHR and Telehealth Adoption
• Positive Sentiment: Several recent articles argue Oracle’s steep drop may have created a buy-the-dip opportunity, with some suggesting meaningful recovery potential if AI demand and backlog translate into profits. Prediction: Oracle Stock Could Reach a New High by 2027
• Neutral Sentiment: Oracle recently reported stronger-than-expected quarterly results, with revenue and EPS beating estimates and management issuing forward guidance that was in line with continued growth. Oracle stock and earnings background
• Negative Sentiment: Investors are increasingly worried that Oracle’s aggressive AI buildout is becoming too expensive, with reports highlighting higher data center costs, potential $7 billion in power-related obligations, and exposure to OpenAI-related risks. Oracle’s (ORCL) Massive Wisconsin Data Center Runs Into a $7 Billion Power Problem
• Negative Sentiment: Analysts and commentators say Oracle’s free cash flow could remain under pressure as AI capital spending rises, adding to concerns about debt and valuation after the stock’s steep decline. Analysis-AI investment boom puts Big Tech’s free cash flow under pressure

Analyst Upgrades and Downgrades

A number of research analysts have commented on ORCL shares. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $190.00 target price on shares of Oracle in a report on Thursday, June 11th. UBS Group boosted their price target on Oracle from $250.00 to $285.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Piper Sandler upped their price target on Oracle from $210.00 to $225.00 and gave the company an “overweight” rating in a research report on Thursday, June 11th. Weiss Ratings cut Oracle from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday. Finally, Arete Research set a $255.00 price objective on shares of Oracle and gave the stock a “buy” rating in a report on Thursday, May 7th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Oracle currently has an average rating of “Moderate Buy” and a consensus target price of $265.03.

Oracle Price Performance

The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12. The company has a fifty day moving average price of $173.38 and a 200 day moving average price of $167.78. The company has a market capitalization of $345.92 billion, a P/E ratio of 20.60, a price-to-earnings-growth ratio of 0.80 and a beta of 1.72.

Oracle (NYSE:ORCL) last announced its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.96 by $0.15. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The business had revenue of $19.18 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter last year, the business posted $1.70 EPS. The business’s revenue was up 20.6% on a year-over-year basis. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. On average, sell-side analysts forecast that Oracle Corporation will post 6.47 EPS for the current fiscal year.

Oracle Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Friday, July 10th. Oracle’s dividend payout ratio (DPR) is presently 34.31%.

Insider Activity

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the business’s stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the completion of the transaction, the insider owned 400,000 shares of the company’s stock, valued at approximately $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 40.90% of the company’s stock.

Institutional Trading of Oracle

Several hedge funds have recently bought and sold shares of ORCL. Vanguard Group Inc. raised its holdings in shares of Oracle by 3.5% during the fourth quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider’s stock valued at $34,070,674,000 after buying an additional 5,841,584 shares during the last quarter. State Street Corp grew its holdings in Oracle by 4.4% in the 4th quarter. State Street Corp now owns 76,527,759 shares of the enterprise software provider’s stock worth $14,916,026,000 after buying an additional 3,216,915 shares in the last quarter. Geode Capital Management LLC grew its holdings in Oracle by 1.8% in the 4th quarter. Geode Capital Management LLC now owns 37,734,944 shares of the enterprise software provider’s stock worth $7,328,754,000 after buying an additional 665,374 shares in the last quarter. Capital Research Global Investors increased its position in Oracle by 29.3% in the 4th quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider’s stock valued at $5,874,070,000 after acquiring an additional 6,826,299 shares during the period. Finally, Morgan Stanley increased its position in Oracle by 1.9% in the 4th quarter. Morgan Stanley now owns 27,125,099 shares of the enterprise software provider’s stock valued at $5,286,953,000 after acquiring an additional 495,146 shares during the period. 42.44% of the stock is currently owned by institutional investors.

About Oracle

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.