Oracle (NYSE:ORCL) Trading Up 2.4% – What’s Next?
by Danessa Lincoln · The Markets DailyOracle Corporation (NYSE:ORCL – Get Free Report) traded up 2.4% during mid-day trading on Thursday . The stock traded as high as $180.16 and last traded at $178.08. 20,977,230 shares changed hands during mid-day trading, a decline of 1% from the average session volume of 21,287,482 shares. The stock had previously closed at $173.88.
Key Headlines Impacting Oracle
Here are the key news stories impacting Oracle this week:
- Positive Sentiment: Oracle’s role in the approved TikTok U.S. divestiture is being framed as a cloud-infrastructure win: Oracle (reported ~15% stake) will be the “trusted technology partner,” effectively locking TikTok’s compute and storage demand into Oracle Cloud Infrastructure and validating big AI/data-center investments. This secures recurring, high-volume tenancy for OCI and reduces execution risk on Oracle’s capex. US, China agree to spin off TikTok’s US operation
- Positive Sentiment: Independent ISG research shows accelerating enterprise adoption of Oracle Cloud Infrastructure across the U.S. and Asia-Pacific, supporting durable revenue growth for OCI and multicloud database consumption. This underpins Oracle’s long-term cloud monetization thesis. U.S. Enterprises Are Increasing Adopting Oracle Cloud Infrastructure
- Positive Sentiment: Analyst commentary and sector write-ups highlight Oracle as a “picks-and-shovels” beneficiary of the AI buildout (OCI, GPUs, Stargate-related infrastructure), reinforcing investor interest in ORCL as an AI-infrastructure play. ORCL, MU and AVGO Forecast
- Neutral Sentiment: Market volatility from macro/geopolitical headlines (a broader market sell-off tied to “Greenland” tariff/fear headlines) pressured equities generally; Oracle moves partly reflect sector flows rather than company-specific news. 2 Stocks to Watch as Stock Markets Plummet Over Greenland
- Negative Sentiment: Multiple law firms (Rosen) publicized class action claims tied to Oracle’s senior note shelf offering; separate bondholder litigation and a reported downtick in investor appetite for Stargate-related debt have raised disclosure and funding concerns — these legal and financing overhangs pressured the stock last session. ROSEN, LEADING INVESTOR COUNSEL, Encourages Oracle Investors
- Negative Sentiment: Coverage highlighted Oracle’s heavy cash outflows to build AI data centers while still returning capital to shareholders; concerns about cash burn vs. debt funding choices add skepticism among bond investors and some analysts. Oracle’s Cash Is Vanishing
Wall Street Analysts Forecast Growth
Several research analysts have recently weighed in on ORCL shares. Redburn Partners set a $175.00 price target on shares of Oracle in a report on Thursday, September 25th. KeyCorp decreased their target price on Oracle from $350.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday, December 11th. Barclays set a $310.00 price target on Oracle in a report on Thursday, December 11th. Mizuho set a $400.00 price objective on Oracle in a report on Monday, December 15th. Finally, TD Cowen lowered their target price on shares of Oracle from $400.00 to $350.00 and set a “buy” rating on the stock in a research note on Thursday, December 11th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Oracle currently has a consensus rating of “Moderate Buy” and an average target price of $303.51.
Check Out Our Latest Stock Analysis on ORCL
Oracle Price Performance
The business’s 50-day simple moving average is $200.07 and its 200-day simple moving average is $240.34. The stock has a market cap of $511.65 billion, a PE ratio of 33.47, a PEG ratio of 1.59 and a beta of 1.65. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 3.28.
Oracle (NYSE:ORCL – Get Free Report) last posted its earnings results on Wednesday, December 10th. The enterprise software provider reported $2.26 earnings per share for the quarter, topping analysts’ consensus estimates of $1.64 by $0.62. The company had revenue of $16.06 billion during the quarter, compared to analyst estimates of $16.19 billion. Oracle had a net margin of 25.28% and a return on equity of 70.60%. Oracle’s revenue for the quarter was up 14.2% on a year-over-year basis. During the same period in the prior year, the business posted $1.47 earnings per share. On average, research analysts expect that Oracle Corporation will post 5 EPS for the current fiscal year.
Oracle Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 23rd. Stockholders of record on Friday, January 9th will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Friday, January 9th. Oracle’s dividend payout ratio (DPR) is currently 37.59%.
Insider Activity at Oracle
In other Oracle news, Director Naomi O. Seligman sold 2,223 shares of the business’s stock in a transaction on Tuesday, December 23rd. The shares were sold at an average price of $196.61, for a total transaction of $437,064.03. Following the transaction, the director directly owned 25,596 shares of the company’s stock, valued at approximately $5,032,429.56. The trade was a 7.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Clayton M. Magouyrk sold 10,000 shares of the company’s stock in a transaction on Friday, December 19th. The stock was sold at an average price of $192.52, for a total transaction of $1,925,200.00. Following the completion of the transaction, the chief executive officer owned 144,030 shares of the company’s stock, valued at $27,728,655.60. This trade represents a 6.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 111,588 shares of company stock valued at $26,108,046 over the last 90 days. Company insiders own 40.90% of the company’s stock.
Hedge Funds Weigh In On Oracle
Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its holdings in shares of Oracle by 2.8% during the 3rd quarter. Vanguard Group Inc. now owns 168,960,500 shares of the enterprise software provider’s stock worth $47,518,451,000 after acquiring an additional 4,681,626 shares during the period. State Street Corp lifted its stake in shares of Oracle by 1.7% in the 2nd quarter. State Street Corp now owns 73,459,391 shares of the enterprise software provider’s stock valued at $16,060,427,000 after purchasing an additional 1,252,723 shares during the period. Capital Research Global Investors boosted its position in shares of Oracle by 1.2% during the third quarter. Capital Research Global Investors now owns 23,310,827 shares of the enterprise software provider’s stock valued at $6,555,961,000 after purchasing an additional 266,588 shares in the last quarter. Norges Bank purchased a new stake in Oracle in the second quarter worth $4,275,378,000. Finally, Bank of New York Mellon Corp raised its holdings in Oracle by 0.8% in the third quarter. Bank of New York Mellon Corp now owns 11,938,457 shares of the enterprise software provider’s stock worth $3,357,572,000 after purchasing an additional 98,693 shares in the last quarter. 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.