Oracle (NYSE:ORCL) Stock Falls 3.3% – Should You Sell?

Oracle Corporation (NYSE:ORCL) was down 3.3% on Monday. The stock traded as low as $131.58 and last traded at $132.64. 33,589,722 shares were traded during mid-day trading, an increase of 14% from the average session volume of 29,421,881 shares. The stock had previously closed at $137.10.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle announced an integration with Swift’s blockchain ledger, potentially helping banks connect tokenized-deposit systems to cross-border payment networks. The initiative supports Oracle’s positioning in financial technology and digital payments. Oracle Integration with Swift’s Ledger
• Positive Sentiment: Several investment articles highlight Oracle’s reported $664 billion backlog, strong cloud growth and the long-term opportunity from AI computing demand. Oracle’s recent quarter also exceeded earnings and revenue expectations, supporting the bullish case if the backlog converts into profitable sales. Oracle Reports a $664 Billion Backlog

Analysts Set New Price Targets

A number of research firms have commented on ORCL. Stephens reaffirmed an “equal weight” rating and set a $175.00 target price on shares of Oracle in a report on Friday, September 11th. Barclays raised their price target on Oracle from $250.00 to $252.00 and gave the stock an “overweight” rating in a research report on Friday, September 11th. Citizens Jmp reaffirmed a “market outperform” rating and set a $285.00 price objective on shares of Oracle in a research note on Wednesday, September 9th. Wedbush dropped their price objective on Oracle from $275.00 to $240.00 and set an “outperform” rating for the company in a report on Thursday, June 11th. Finally, Argus reissued a “buy” rating and set a $225.00 price objective on shares of Oracle in a research note on Monday, September 14th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $254.68.

Oracle Price Performance

The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 1.89. The company’s fifty day moving average price is $142.91 and its two-hundred day moving average price is $160.14. The company has a market cap of $401.07 billion, a price-to-earnings ratio of 20.79, a PEG ratio of 0.98 and a beta of 1.74.

Oracle (NYSE:ORCL) last announced its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, topping analysts’ consensus estimates of $1.74 by $0.18. Oracle had a net margin of 26.36% and a return on equity of 48.85%. The firm had revenue of $19.34 billion during the quarter, compared to analyst estimates of $19.13 billion. During the same period in the prior year, the business earned $1.47 EPS. The company’s revenue for the quarter was up 29.6% compared to the same quarter last year. 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, equities research analysts forecast that Oracle Corporation will post 6.67 EPS for the current fiscal year.

Oracle Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be issued a dividend of $0.50 per share. The ex-dividend date is Friday, October 9th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.5%. Oracle’s dividend payout ratio (DPR) is presently 31.35%.

Insider Buying and Selling

In other Oracle news, CEO Michael Sicilia sold 22,562 shares of the business’s stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $151.59, for a total value of $3,420,173.58. Following the sale, the chief executive officer owned 182,929 shares in the company, valued at approximately $27,730,207.11. The trade was a 10.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Maria Smith sold 2,631 shares of the business’s stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $151.70, for a total transaction of $399,122.70. Following the completion of the sale, the executive vice president directly owned 64,357 shares in the company, valued at approximately $9,762,956.90. This represents a 3.93% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 36,075 shares of company stock worth $5,342,123. 40.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Oracle

Hedge funds have recently modified their holdings of the stock. Capital Research Global Investors grew its stake 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 purchasing an additional 6,826,299 shares in the last quarter. Janus Henderson Group PLC raised its stake in shares of Oracle by 8.6% during the 4th quarter. Janus Henderson Group PLC now owns 14,539,366 shares of the enterprise software provider’s stock worth $2,815,242,000 after purchasing an additional 1,148,698 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Oracle by 9.2% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,477,803 shares of the enterprise software provider’s stock valued at $2,626,959,000 after buying an additional 1,137,264 shares during the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of Oracle by 7.8% in the 4th quarter. Bank of New York Mellon Corp now owns 12,866,075 shares of the enterprise software provider’s stock valued at $2,507,727,000 after buying an additional 927,618 shares during the last quarter. Finally, Amundi grew its stake in shares of Oracle by 1.5% in the second quarter. Amundi now owns 9,878,184 shares of the enterprise software provider’s stock valued at $1,447,648,000 after buying an additional 144,087 shares in the last quarter. Institutional investors own 42.44% of the company’s stock.

Oracle Company Profile

Oracle Corporation (NYSE: ORCL) is a global technology company that develops enterprise software, cloud services and related hardware. Its offerings help businesses manage databases, applications, data, infrastructure and other core information-technology operations.

The company is best known for its Oracle Database, along with cloud-based infrastructure and platform services. Oracle also provides enterprise applications for functions such as finance, human resources, supply-chain management, customer experience and industry-specific operations.