Oracle (NYSE:ORCL) Trading Up 5.2% – Time to Buy?

Oracle Corporation (NYSE:ORCL) was up 5.2% during mid-day trading on Thursday . The company traded as high as $152.00 and last traded at $150.58. Approximately 26,304,202 shares changed hands during trading, a decline of 10% from the average daily volume of 29,302,006 shares. The stock had previously closed at $143.16.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: OpenAI funding news supports Oracle’s AI strategy. Reports that OpenAI is considering a new funding round at a valuation of roughly $1.2 trillion to $1.5 trillion reinforced confidence in AI demand. Oracle’s infrastructure relationship with OpenAI has become an important part of its growth outlook. Why is Oracle stock gaining 4% today?
• Positive Sentiment: Large backlog provides future revenue visibility. Investors are emphasizing Oracle’s approximately $664 billion remaining performance obligation and reported AI-related deals worth about $30 billion. The backlog suggests strong future cloud demand and helped offset concerns about near-term cash consumption. Oracle Shares Climb Despite Layoffs as $30 Billion AI Deals Fuel Growth
• Positive Sentiment: Analyst earnings expectations remain constructive. KeyCorp raised its FY2027 EPS estimate to $6.82 from $6.50 and its FY2028 forecast to $8.95 from $8.70, signaling confidence that AI-cloud growth can translate into stronger profits. Oracle analyst estimates
• Neutral Sentiment: Cost reductions are intended to fund infrastructure expansion. Oracle is cutting thousands of jobs while investing heavily in data centers and AI capacity. Investors appear willing to view the restructuring as a way to improve spending discipline, though execution will be important. Oracle stock rises as investors look past layoffs to its AI backlog
• Negative Sentiment: Heavy capital spending and borrowing remain key risks. Oracle continues to spend billions on AI infrastructure and carries substantial debt, raising concerns about cash flow, financing costs and returns if AI demand or utilization slows. A potential Federal Reserve rate increase could intensify those pressures. Oracle is slashing payroll while borrowing billions for AI

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Moffett Nathanson set a $325.00 target price on shares of Oracle in a research note on Thursday, June 11th. Stephens reiterated an “equal weight” rating and set a $175.00 price target on shares of Oracle in a research note on Friday, September 11th. Scotiabank decreased their price objective on Oracle from $241.00 to $215.00 and set a “sector outperform” rating for the company in a report on Wednesday, September 9th. Citizens Jmp restated a “market outperform” rating and issued a $285.00 price objective on shares of Oracle in a research note on Wednesday, September 9th. Finally, KeyCorp set a $285.00 price objective on shares of Oracle in a report on Friday, September 11th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $252.58.

Oracle Trading Up 5.2%

The firm has a market cap of $455.31 billion, a PE ratio of 23.60, a PEG ratio of 1.01 and a beta of 1.74. The company has a debt-to-equity ratio of 1.89, a quick ratio of 1.12 and a current ratio of 1.17. The stock’s 50 day simple moving average is $141.12 and its 200 day simple moving average is $160.41.

Oracle (NYSE:ORCL) last posted its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.74 by $0.18. The firm had revenue of $19.34 billion during the quarter, compared to analysts’ expectations of $19.13 billion. Oracle had a return on equity of 48.85% and a net margin of 26.36%.The company’s revenue for the quarter was up 29.6% compared to the same quarter last year. During the same period in the prior year, the business earned $1.47 EPS. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. On average, sell-side analysts forecast that Oracle Corporation will post 6.62 earnings per share for the current fiscal year.

Oracle Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 9th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.00 annualized dividend and a yield of 1.3%. Oracle’s dividend payout ratio is currently 31.35%.

Insider Buying and Selling

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction that occurred 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 transaction, the insider directly owned 400,000 shares of the company’s stock, valued at approximately $63,664,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Oracle

A number of large investors have recently added to or reduced their stakes in the business. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Oracle in the 2nd quarter worth $625,454,000. Edmond DE Rothschild Holding S.A. raised its stake in Oracle by 8.7% in the second quarter. Edmond DE Rothschild Holding S.A. now owns 79,008 shares of the enterprise software provider’s stock valued at $11,579,000 after buying an additional 6,296 shares during the last quarter. New Mexico Educational Retirement Board raised its stake in Oracle by 4.2% in the fourth quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider’s stock valued at $14,928,000 after buying an additional 3,100 shares during the last quarter. Valeo Financial Advisors LLC boosted its holdings in Oracle by 4.6% in the second quarter. Valeo Financial Advisors LLC now owns 80,686 shares of the enterprise software provider’s stock worth $11,825,000 after acquiring an additional 3,584 shares in the last quarter. Finally, Axxcess Wealth Management LLC boosted its holdings in Oracle by 870.0% in the fourth quarter. Axxcess Wealth Management LLC now owns 671,452 shares of the enterprise software provider’s stock worth $128,012,000 after acquiring an additional 602,230 shares in the last quarter. Hedge funds and other institutional investors own 42.44% of the company’s stock.

Oracle Company Profile

Oracle Corporation is a global enterprise technology company that develops and provides database software, cloud infrastructure, business applications and related technology services. Its offerings help organizations manage data, run applications, support business operations and build technology environments across on-premises, hybrid and cloud-based settings.

The company’s products include Oracle Database, MySQL, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud applications for enterprise resource planning, financial management, human resources, supply chain management, customer experience and industry-specific operations.