Oracle (NYSE:ORCL) Shares Down 8.8% – Should You Sell?
by Tristan Rich · The Markets DailyShares of Oracle Corporation (NYSE:ORCL – Get Free Report) traded down 8.8% on Wednesday. The stock traded as low as $129.23 and last traded at $130.60. 50,478,215 shares were traded during mid-day trading, an increase of 71% from the average session volume of 29,451,123 shares. The stock had previously closed at $143.20.
More Oracle News
Here are the key news stories impacting Oracle this week:
- Positive Sentiment: Oracle’s remaining performance obligations reportedly reached $664 billion, reinforcing the potential for substantial future cloud revenue if contracts convert as scheduled. Accelerating cloud demand has led some investors to view the recent selloff as a buying opportunity. Oracle’s Cloud Backlog Just Hit $664 Billion
- Positive Sentiment: Mizuho reaffirmed an Outperform rating and a $320 price target, indicating substantial upside if Oracle executes on its cloud and AI infrastructure expansion. Wall Street analyst updates Oracle stock price target
- Neutral Sentiment: Oracle is reworking Project Jupiter while launching tools for AI startups. The changes could improve execution and customer adoption, but they also highlight the complexity and uncertainty surrounding the company’s large data-center buildout. Why Is Oracle Reworking Project Jupiter?
- Negative Sentiment: Investors remain concerned that heavy AI infrastructure spending is pushing free cash flow negative. Rising interest rates and higher financing costs across AI infrastructure companies could make Oracle’s expansion more expensive and pressure the value of its backlog. Will Rising Capex Weigh on Oracle’s Free Cash Flow Outlook?
- Negative Sentiment: Oracle recently declined alongside CoreWeave and other AI-related stocks after hotter inflation lifted Treasury yields and renewed concerns about AI debt, data-center financing, and the sustainability of aggressive infrastructure spending. Oracle Fell Nearly 9% as CoreWeave’s Bond Scare Spread
Analyst Upgrades and Downgrades
A number of equities research analysts have recently commented on ORCL shares. Barclays lifted their price target on shares of Oracle from $250.00 to $252.00 and gave the stock an “overweight” rating in a report on Friday, September 11th. Royal Bank Of Canada reduced their price target on Oracle from $190.00 to $165.00 and set a “sector perform” rating on the stock in a research note on Friday, September 11th. UBS Group lifted their price objective on Oracle from $245.00 to $250.00 and gave the company a “buy” rating in a research report on Friday, September 11th. TD Cowen reissued a “buy” rating and issued a $240.00 price target (down from $300.00) on shares of Oracle in a research note on Wednesday, September 9th. Finally, Stephens reaffirmed an “equal weight” rating and set a $175.00 price objective on shares of Oracle in a research note on Friday, September 11th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Oracle has a consensus rating of “Moderate Buy” and a consensus price target of $251.72.
View Our Latest Stock Report on Oracle
Oracle Stock Performance
The stock has a market cap of $403.81 billion, a PE ratio of 20.93, a P/E/G ratio of 0.92 and a beta of 1.78. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.17 and a quick ratio of 1.17. The stock has a 50-day simple moving average of $145.75 and a 200-day simple moving average of $158.86.
Oracle (NYSE:ORCL – Get Free Report) last released its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, topping analysts’ consensus estimates of $1.74 by $0.18. Oracle had a return on equity of 48.85% and a net margin of 26.36%. The company had revenue of $19.34 billion for the quarter, compared to the consensus estimate of $19.13 billion. During the same period last year, the business posted $1.47 EPS. The company’s quarterly revenue 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. Equities analysts predict that Oracle Corporation will post 6.73 earnings per share for the current fiscal year.
Oracle Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 9th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, October 9th. Oracle’s payout ratio is 31.35%.
Insiders Place Their Bets
In other news, CEO Michael Sicilia sold 22,562 shares of the stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.59, for a total value of $3,420,173.58. Following the completion of the sale, the chief executive officer owned 182,929 shares of the company’s stock, valued at $27,730,207.11. This represents a 10.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Rusckowski bought 25,000 shares of the business’s stock in a transaction dated Tuesday, September 29th. The stock was acquired at an average cost of $139.35 per share, for a total transaction of $3,483,750.00. Following the purchase, the director owned 25,390 shares in the company, valued at approximately $3,538,096.50. This trade represents a 6,410.26% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold a total of 36,075 shares of company stock worth $5,342,123 over the last ninety days. 38.40% of the stock is owned by company insiders.
Institutional Inflows and Outflows
Several hedge funds have recently added to or reduced their stakes in ORCL. Bank of New York Mellon Corp purchased a new position in Oracle in the 2nd quarter worth approximately $1,911,930,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Oracle during the second quarter valued at approximately $625,454,000. Auto Owners Insurance Co raised its stake in shares of Oracle by 19,391.0% during the fourth quarter. Auto Owners Insurance Co now owns 2,826,195 shares of the enterprise software provider’s stock valued at $550,854,000 after purchasing an additional 2,811,695 shares during the period. Hsbc Holdings PLC lifted its position in shares of Oracle by 43.6% during the fourth quarter. Hsbc Holdings PLC now owns 5,525,291 shares of the enterprise software provider’s stock worth $1,081,118,000 after purchasing an additional 1,676,629 shares in the last quarter. Finally, Corient Private Wealth LP acquired a new position in shares of Oracle during the second quarter worth $186,175,000. 42.44% of the stock is owned by hedge funds and other institutional investors.
About Oracle
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.