Oracle (NYSE:ORCL) Trading Down 2.6% – Here’s Why

Oracle Co. (NYSE:ORCL) dropped 2.6% during mid-day trading on Friday . The stock traded as low as $128.84 and last traded at $129.90. Approximately 2,296,308 shares traded hands during trading, a decline of 75% from the average daily volume of 9,230,129 shares. The stock had previously closed at $133.35.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on ORCL shares. Stephens started coverage on Oracle in a research report on Wednesday, March 19th. They issued an “equal weight” rating and a $167.00 price target for the company. Monness Crespi & Hardt upgraded Oracle from a “sell” rating to a “neutral” rating in a research note on Monday, March 3rd. KeyCorp restated an “overweight” rating and set a $200.00 price objective on shares of Oracle in a report on Tuesday, March 11th. Morgan Stanley dropped their target price on shares of Oracle from $175.00 to $170.00 and set an “equal weight” rating on the stock in a research report on Tuesday, March 11th. Finally, BMO Capital Markets cut their price target on shares of Oracle from $205.00 to $175.00 and set a “market perform” rating on the stock in a report on Tuesday, March 11th. Thirteen analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $178.65.

Oracle Price Performance

The firm has a market capitalization of $369.51 billion, a PE ratio of 32.26, a P/E/G ratio of 3.46 and a beta of 1.22. The company has a fifty day moving average price of $155.96 and a two-hundred day moving average price of $167.87. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 5.65.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Monday, March 10th. The enterprise software provider reported $1.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.02). The firm had revenue of $14.13 billion for the quarter, compared to analyst estimates of $14.40 billion. Oracle had a return on equity of 133.25% and a net margin of 21.16%. The company’s revenue was up 6.4% compared to the same quarter last year. During the same quarter last year, the firm earned $1.41 earnings per share. Sell-side analysts forecast that Oracle Co. will post 5 earnings per share for the current year.

Oracle Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 23rd. Investors of record on Thursday, April 10th will be paid a $0.50 dividend. The ex-dividend date is Thursday, April 10th. This is an increase from Oracle’s previous quarterly dividend of $0.40. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.51%. Oracle’s payout ratio is 46.95%.

Insiders Place Their Bets

In related news, Director Naomi O. Seligman sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, April 2nd. The stock was sold at an average price of $145.81, for a total value of $291,620.00. Following the completion of the transaction, the director now directly owns 34,630 shares of the company’s stock, valued at $5,049,400.30. This trade represents a 5.46 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Safra Catz sold 2,101,154 shares of the firm’s stock in a transaction dated Wednesday, January 22nd. The stock was sold at an average price of $185.35, for a total transaction of $389,448,893.90. Following the sale, the chief executive officer now directly owns 1,118,592 shares in the company, valued at $207,331,027.20. This represents a 65.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 2,448,328 shares of company stock worth $453,791,001. 42.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Oracle

Several large investors have recently added to or reduced their stakes in ORCL. R Squared Ltd purchased a new position in shares of Oracle in the 4th quarter worth $25,000. Sunbeam Capital Management LLC acquired a new stake in Oracle during the 4th quarter worth approximately $30,000. Winch Advisory Services LLC lifted its position in Oracle by 89.7% during the fourth quarter. Winch Advisory Services LLC now owns 184 shares of the enterprise software provider’s stock valued at $31,000 after buying an additional 87 shares in the last quarter. Hurley Capital LLC acquired a new position in shares of Oracle during the 4th quarter valued at $33,000. Finally, Synergy Investment Management LLC acquired a new stake in Oracle in the 4th quarter valued at $34,000. 42.44% of the stock is currently owned by hedge funds and other institutional investors.

Oracle Company Profile

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing.