Oracle (NYSE:ORCL) Stock Price Down 3% – Should You Sell?

Oracle Corporation (NYSE:ORCL)’s stock price traded down 3% on Thursday . The company traded as low as $150.36 and last traded at $152.8180. Approximately 36,062,270 shares traded hands during mid-day trading, an increase of 31% from the average session volume of 27,455,092 shares. The stock had previously closed at $157.53.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s record $638 billion backlog is reinforcing confidence in future revenue, with articles noting that AI cloud demand and surging cloud infrastructure sales could provide years of visibility and support long-term growth. Oracle’s Contract Backlog Swells: Is Long-Term Revenue Growth Secured?
• Positive Sentiment: Oracle also announced new defense-related partnerships, expanding its ecosystem for mission-ready AI, cyber, and secure cloud capabilities, which could strengthen Oracle Cloud Infrastructure adoption. Oracle Strengthens Defense Ecosystem to Help Emerging Technology Companies Scale Mission-Ready Capabilities
• Positive Sentiment: Oracle Health’s collaboration with Theator extends AI into surgical workflows, adding another example of Oracle monetizing AI across vertical markets and potentially deepening enterprise demand. Oracle Health Extends AI into the Operating Room in Collaboration with Theator
• Neutral Sentiment: Several commentary pieces argue Oracle could still become a much larger company, but they also note that its path depends heavily on execution and a few large contracts, making the upside story more speculative. Can Oracle Become a $1 Trillion Company?
• Negative Sentiment: Oracle’s announcement of about 21,000 job cuts is weighing on sentiment, with investors concerned that the AI transition may be disrupting the workforce and signaling broader restructuring pressure. ORCL Stock Layoffs: What to Know as Oracle Cuts 21,000 Jobs
• Negative Sentiment: Bearish coverage is also highlighting Oracle’s heavy spending, capital intensity, and possible shareholder dilution, which could keep pressure on the stock despite strong backlog growth. Oracle: Becoming A Highly Capital-Intensive NG-Dependent Wholesale Colocation Utility (Rating Downgrade)

Analysts Set New Price Targets

ORCL has been the topic of a number of research reports. Jefferies Financial Group cut their target price on shares of Oracle from $400.00 to $320.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. Wedbush dropped their price objective on shares of Oracle from $275.00 to $240.00 and set an “outperform” rating on the stock in a research note on Thursday, June 11th. Morgan Stanley reissued a “mixed” rating on shares of Oracle in a report on Thursday, June 11th. Robert W. Baird reduced their price objective on shares of Oracle from $300.00 to $200.00 and set an “outperform” rating for the company in a research note on Tuesday, March 10th. Finally, Barclays upped their target price on Oracle from $240.00 to $250.00 and gave the stock an “overweight” rating in a report on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $268.27.

Oracle Stock Performance

The company has a current ratio of 1.12, a quick ratio of 1.35 and a debt-to-equity ratio of 3.21. The stock has a market cap of $440.19 billion, a PE ratio of 26.21, a P/E/G ratio of 1.04 and a beta of 1.65. The business’s 50-day moving average price is $190.16 and its 200-day moving average price is $176.34.

Oracle (NYSE:ORCL) last announced its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, beating the consensus estimate of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The company had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same period last year, the firm earned $1.70 earnings per share. Oracle’s revenue was up 20.6% compared to the same quarter last year. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, equities research analysts expect that Oracle Corporation will post 6.45 earnings per share for the current fiscal year.

Oracle Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 1.3%. The ex-dividend date is Friday, July 10th. Oracle’s payout ratio is 34.31%.

Insider Transactions at Oracle

In related news, EVP Stuart Levey sold 15,000 shares of the company’s stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $176.19, for a total transaction of $2,642,850.00. Following the transaction, the executive vice president directly owned 3,429 shares of the company’s stock, valued at $604,155.51. This represents a 81.39% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Oracle

A number of large investors have recently modified their holdings of ORCL. HFM Investment Advisors LLC boosted its stake in Oracle by 290.9% in the 4th quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock worth $25,000 after purchasing an additional 96 shares in the last quarter. Basepoint Wealth LLC acquired a new position in Oracle during the 4th quarter valued at approximately $26,000. FSA Wealth Management LLC purchased a new position in shares of Oracle in the third quarter worth $28,000. Osbon Capital Management LLC acquired a new stake in shares of Oracle during the fourth quarter worth $28,000. Finally, Joseph Group Capital Management acquired a new stake in shares of Oracle during the fourth quarter worth $29,000. Hedge funds and other institutional investors own 42.44% of the company’s stock.

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.