Oracle (NYSE:ORCL) Trading Down 3.4% – Time to Sell?
by Amy Steele · The Cerbat GemOracle Corporation (NYSE:ORCL – Get Free Report)’s stock price fell 3.4% during trading on Wednesday . The stock traded as low as $170.60 and last traded at $173.88. 37,668,789 shares changed hands during mid-day trading, an increase of 77% from the average session volume of 21,278,037 shares. The stock had previously closed at $179.92.
Oracle News Roundup
Here are the key news stories impacting Oracle this week:
- Positive Sentiment: Zacks highlights Oracle’s multicloud AI momentum — multicloud database consumption up ~817% year-over-year and new programs aimed at deeper enterprise adoption, which supports durable revenue and consumption growth. Is Oracle’s Multicloud AI Strategy Powering Sustainable Growth?
- Positive Sentiment: Guggenheim’s take (covered by MarketWatch) argues fears about Oracle’s AI-related debt and concentration with OpenAI are overblown and that the company has a large long-term opportunity — a supportive analyst view for longer-term upside. Oracle’s stock could be a big winner for the next decade, according to this analyst. Here’s why.
- Positive Sentiment: Investor commentary (Seeking Alpha) frames recent weakness as a buying opportunity, pointing to backlog diversification and cloud consumption trends that could reaccelerate revenue and margins as deals convert. Oracle: ‘Buy’ The Dip As Backlog Diversification Continues
- Neutral Sentiment: Valuation/price-deck pieces (Yahoo) assess whether the recent pullback leaves ORCL fairly priced given cloud growth focus — useful for investors deciding entry points but not an immediate catalyst. Is Oracle (ORCL) Fairly Priced After Recent Share Price Pullback And Cloud Growth Focus
- Negative Sentiment: News explains the selloff drivers: profit-taking after a strong run, worries about OpenAI concentration and AI-related capital intensity; those headlines and elevated trading volume are pressuring the stock near its 50-day and 200-day moving averages. Why Oracle (ORCL) Shares Are Falling Today
- Negative Sentiment: Technical and liquidity context: heavy volume on the drop, price below the 50-day and well under the 200-day average, which can trigger momentum selling and caution among short-term holders.
Analysts Set New Price Targets
A number of brokerages have issued reports on ORCL. Rothschild Redb raised Oracle to a “strong sell” rating in a research note on Thursday, September 25th. Erste Group Bank cut shares of Oracle from a “buy” rating to a “hold” rating in a research report on Monday, November 10th. UBS Group reiterated a “buy” rating on shares of Oracle in a report on Monday, January 5th. Redburn Partners set a $175.00 price target on shares of Oracle in a report on Thursday, September 25th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $375.00 price target on shares of Oracle in a research report on Wednesday, November 26th. Three research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $303.51.
Check Out Our Latest Research Report on ORCL
Oracle Stock Down 3.4%
The firm has a 50 day moving average price of $201.12 and a 200-day moving average price of $240.80. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 3.28. The firm has a market cap of $499.58 billion, a PE ratio of 32.68, a PEG ratio of 1.68 and a beta of 1.65.
Oracle (NYSE:ORCL – Get Free Report) last announced its quarterly earnings results on Wednesday, December 10th. The enterprise software provider reported $2.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.64 by $0.62. The firm had revenue of $16.06 billion during the quarter, compared to the consensus estimate of $16.19 billion. Oracle had a return on equity of 70.60% and a net margin of 25.28%.The firm’s quarterly revenue was up 14.2% compared to the same quarter last year. During the same period in the prior year, the company posted $1.47 earnings per share. Research analysts forecast that Oracle Corporation will post 5 EPS for the current fiscal year.
Oracle Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 23rd. Shareholders of record on Friday, January 9th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, January 9th. This represents a $2.00 annualized dividend and a yield of 1.2%. Oracle’s dividend payout ratio is currently 37.59%.
Insider Activity at Oracle
In other Oracle news, EVP Douglas A. Kehring sold 35,000 shares of Oracle 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 in the company, valued at approximately $6,555,709.82. This trade represents a 50.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Naomi O. Seligman sold 2,223 shares of the company’s stock in a transaction that occurred 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 sale, the director owned 25,596 shares of the company’s stock, valued at $5,032,429.56. This trade represents a 7.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 116,588 shares of company stock worth $27,511,146 in the last ninety days. Company insiders own 40.90% of the company’s stock.
Institutional Trading of Oracle
A number of hedge funds have recently bought and sold shares of the company. Brighton Jones LLC increased its position in Oracle by 189.3% during the 4th quarter. Brighton Jones LLC now owns 153,580 shares of the enterprise software provider’s stock worth $25,593,000 after purchasing an additional 100,494 shares in the last quarter. Revolve Wealth Partners LLC increased its position in shares of Oracle by 8.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 5,418 shares of the enterprise software provider’s stock worth $903,000 after acquiring an additional 404 shares in the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of Oracle by 21.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,348 shares of the enterprise software provider’s stock valued at $951,000 after acquiring an additional 768 shares in the last quarter. CX Institutional boosted its position in Oracle by 4.6% during the 2nd quarter. CX Institutional now owns 16,862 shares of the enterprise software provider’s stock worth $3,687,000 after purchasing an additional 748 shares during the period. Finally, Acropolis Investment Management LLC increased its holdings in Oracle by 2.6% in the 2nd quarter. Acropolis Investment Management LLC now owns 1,850 shares of the enterprise software provider’s stock valued at $404,000 after purchasing an additional 47 shares in the last quarter. Institutional investors and hedge funds 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.