Oracle (NYSE:ORCL) Trading Down 4.7% – Here’s Why

Oracle Corporation (NYSE:ORCL) traded down 4.7% during trading on Monday . The stock traded as low as $138.59 and last traded at $141.0720. 31,564,171 shares were traded during mid-day trading, an increase of 17% from the average session volume of 26,936,201 shares. The stock had previously closed at $148.08.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Zacks and other outlets note heightened investor attention in ORCL, which can increase liquidity and analyst focus (a potential positive if sentiment stabilizes). Oracle Corporation (ORCL) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Evercore’s analysis of hyperscaler capex (Microsoft singled out as best positioned for free‑cash‑flow growth) frames the industry backdrop: massive AI capex is real and will separate winners and losers among cloud/hyperscaler peers. This is context for Oracle’s spending decisions. Evercore Sees Microsoft Growing FCF 5% as Hyperscaler Capex Jumps 58%
• Neutral Sentiment: Broad analysis that “AI is repricing the future” signals investors are re-evaluating tech multiples and long‑term forecasts — a sector headwind that can pressure Oracle alongside peers as earnings and capital plans are reassessed. AI Is Repricing the Future. Tech Valuations May Not Be Done Falling.
• Neutral Sentiment: Research/video coverage on hyperscalers (BNP Paribas/Yahoo) highlights Oracle’s central role in the AI arms race — useful for long‑term thesis but also underscores the scale and cost of competing. How hyperscalers like Oracle and Meta are driving the AI arms race
• Negative Sentiment: Fool and other reports point to investor anxiety that Oracle may have “bitten off more than it can chew” with AI commitments — selling pressure stems from doubts about returns on large capex and the timing of payback. Here’s Why Oracle Stock Slumped Today
• Negative Sentiment: Reporting raised specific concerns about Oracle’s Stargate AI data‑center initiative, prompting near‑term skepticism about execution and incremental cost vs. benefit. Oracle stock falls amid Stargate project concerns
• Negative Sentiment: Multiple securities‑fraud class action notices and filing reminders (Kessler Topaz, Levi & Korsinsky, Glancy, Rosen, Bronstein, etc.) allege misstatements about AI/data‑center capabilities and capex — legal risk raises uncertainty, potential costs, and governance scrutiny. Oracle Corporation Securities Fraud Class Action Lawsuit Pending
• Negative Sentiment: Prominent investor criticism (Michael Burry) and coverage on the “AI debt binge” highlight concerns that hyperscalers are funding buildouts with debt, raising balance‑sheet and investor‑return questions that weigh on Oracle alongside peers. Michael Burry Questions ‘When Will AI Data Center Spending End?’

Analysts Set New Price Targets

Several equities analysts recently issued reports on the stock. KeyCorp reduced 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. HSBC reiterated a “buy” rating and set a $382.00 target price on shares of Oracle in a report on Wednesday, November 26th. Barclays restated an “overweight” rating on shares of Oracle in a research note on Monday, February 2nd. Guggenheim reaffirmed a “buy” rating and issued a $400.00 price target on shares of Oracle in a research note on Thursday, December 11th. Finally, Weiss Ratings downgraded Oracle from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, January 23rd. Three analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Oracle has an average rating of “Moderate Buy” and an average price target of $290.97.

Oracle Stock Performance

The company has a debt-to-equity ratio of 3.28, a current ratio of 0.91 and a quick ratio of 0.91. The business has a 50 day moving average price of $178.15 and a 200 day moving average price of $227.47. The stock has a market capitalization of $405.32 billion, a PE ratio of 26.52, a PEG ratio of 1.29 and a beta of 1.64.

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

Oracle Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, January 23rd. Investors of record on Friday, January 9th were given a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, January 9th. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. Oracle’s dividend payout ratio (DPR) is 37.59%.

Insider Activity

In related news, EVP Douglas A. Kehring sold 35,000 shares of the company’s stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $194.89, for a total value of $6,821,150.00. Following the transaction, the executive vice president directly owned 33,638 shares of the company’s stock, valued at approximately $6,555,709.82. This represents a 50.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Naomi O. Seligman sold 2,223 shares of Oracle stock in a transaction on Tuesday, December 23rd. The stock was sold at an average price of $196.61, for a total value of $437,064.03. Following the completion of the sale, the director directly owned 25,596 shares of the company’s stock, valued at approximately $5,032,429.56. The trade was a 7.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 72,223 shares of company stock valued at $13,689,064 in the last quarter. Insiders own 40.90% of the company’s stock.

Institutional Trading of Oracle

A number of institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in Oracle by 3.5% during the 4th 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 shares of Oracle by 4.4% in the fourth quarter. State Street Corp now owns 76,527,759 shares of the enterprise software provider’s stock worth $14,916,026,000 after acquiring an additional 3,216,915 shares during the period. Geode Capital Management LLC increased its position in Oracle by 1.8% during the fourth quarter. Geode Capital Management LLC now owns 37,734,944 shares of the enterprise software provider’s stock valued at $7,328,754,000 after acquiring an additional 665,374 shares during the last quarter. Capital Research Global Investors lifted its holdings in Oracle by 29.3% in the fourth 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 boosted its position in Oracle by 1.9% in the fourth quarter. Morgan Stanley now owns 27,125,099 shares of the enterprise software provider’s stock worth $5,286,953,000 after purchasing an additional 495,146 shares during the last quarter. Hedge funds and other institutional investors 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.