Oracle (NYSE:ORCL) Shares Down 4.7% – Time to Sell?
by Danessa Lincoln · The Markets DailyOracle Corporation (NYSE:ORCL – Get Free Report) traded down 4.7% during mid-day trading on Wednesday . The stock traded as low as $155.35 and last traded at $157.3840. 37,816,641 shares changed hands during trading, an increase of 38% from the average daily volume of 27,378,137 shares. The stock had previously closed at $165.16.
More Oracle News
Here are the key news stories impacting Oracle this week:
- Positive Sentiment: Oracle Health announced a partnership with Theator to automate surgical reporting using AI on Oracle Cloud Infrastructure, adding another real-world AI use case and potentially expanding its healthcare cloud footprint.
- Positive Sentiment: Oracle’s record contract backlog and continued AI cloud demand are being cited as support for long-term revenue visibility, which bulls argue could justify the company’s heavy investment cycle.
- Positive Sentiment: Several bullish commentaries point to strong Wall Street support, with one report noting 36 buy ratings and suggesting meaningful upside from current levels.
- Positive Sentiment: Oracle also expanded its Defense Ecosystem with new partners focused on mission-ready AI, cyber, and secure cloud capabilities, reinforcing demand across government and defense customers.
- Neutral Sentiment: Wedbush said the latest tech selloff looks like short-term impatience rather than a break in the AI trade, which supports the broader investment case for Oracle but does not change fundamentals directly.
- Neutral Sentiment: Other articles debated Oracle’s valuation, future growth potential, and whether the company could become a trillion-dollar business, but these pieces were mostly opinion-driven rather than new company-specific catalysts.
- Negative Sentiment: Oracle’s AI spending is outrunning cloud revenue growth in the near term, raising concerns that heavy capital expenditures may pressure margins before returns on investment become clearer.
- Negative Sentiment: Reports that OpenAI may delay its IPO to 2027 weighed on Oracle sentiment, since investors see Oracle as tied to the broader AI buildout and expected infrastructure demand.
- Negative Sentiment: Oracle also faced fresh criticism over layoffs of about 21,000 jobs, reinforcing worries that the company is restructuring aggressively as it shifts toward an AI-heavy model.
Analyst Upgrades and Downgrades
ORCL has been the subject of a number of analyst reports. Jefferies Financial Group decreased their price objective on Oracle from $400.00 to $320.00 and set a “buy” rating for the company in a research note on Thursday, March 5th. Arete Research set a $255.00 target price on shares of Oracle and gave the stock a “buy” rating in a report on Thursday, May 7th. Cantor Fitzgerald reissued an “overweight” rating and set a $284.00 price target on shares of Oracle in a research report on Thursday, June 11th. Barclays raised their price target on shares of Oracle from $240.00 to $250.00 and gave the company an “overweight” rating in a report on Thursday, June 11th. Finally, Mizuho set a $320.00 price objective on shares of Oracle in a research report on Wednesday, June 3rd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $268.27.
Get Our Latest Stock Analysis on Oracle
Oracle Stock Down 2.0%
The company has a 50-day moving average of $189.96 and a 200-day moving average of $175.88. The company has a current ratio of 1.12, a quick ratio of 1.35 and a debt-to-equity ratio of 3.21. The company has a market capitalization of $430.19 billion, a price-to-earnings ratio of 25.61, a price-to-earnings-growth ratio of 0.99 and a beta of 1.65.
Oracle (NYSE:ORCL – Get Free Report) last issued its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, topping the consensus estimate of $1.96 by $0.15. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The business had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter last year, the company earned $1.70 earnings per share. The company’s quarterly revenue was up 20.6% on a year-over-year basis. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. On average, equities analysts predict that Oracle Corporation will post 6.46 earnings per share for the current fiscal year.
Oracle Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be paid a $0.50 dividend. The ex-dividend date is Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a yield of 1.3%. Oracle’s dividend payout ratio (DPR) is 34.31%.
Insiders Place Their Bets
In other Oracle news, EVP Stuart Levey sold 15,000 shares of the company’s stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $176.19, for a total transaction of $2,642,850.00. Following the transaction, the executive vice president owned 3,429 shares in the company, valued at approximately $604,155.51. This represents a 81.39% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 40.90% of the company’s stock.
Institutional Investors Weigh In On Oracle
A number of large investors have recently made changes to their positions in ORCL. Perennial Investment Advisors LLC lifted its holdings in shares of Oracle by 0.5% during the third quarter. Perennial Investment Advisors LLC now owns 9,627 shares of the enterprise software provider’s stock worth $2,708,000 after purchasing an additional 45 shares during the period. Consolidated Portfolio Review Corp lifted its stake in shares of Oracle by 1.0% in the 3rd quarter. Consolidated Portfolio Review Corp now owns 4,988 shares of the enterprise software provider’s stock valued at $1,403,000 after purchasing an additional 50 shares during the period. Mpwm Advisory Solutions LLC boosted its holdings in Oracle by 76.9% during the third quarter. Mpwm Advisory Solutions LLC now owns 115 shares of the enterprise software provider’s stock worth $32,000 after buying an additional 50 shares in the last quarter. Clarion Wealth Managment Partners LLC boosted its holdings in Oracle by 1.5% during the third quarter. Clarion Wealth Managment Partners LLC now owns 3,563 shares of the enterprise software provider’s stock worth $1,002,000 after buying an additional 51 shares in the last quarter. Finally, Verum Partners LLC grew its holdings in Oracle by 2.2% in the fourth quarter. Verum Partners LLC now owns 2,409 shares of the enterprise software provider’s stock valued at $470,000 after purchasing an additional 51 shares during the period. 42.44% of the stock is owned by hedge funds and other institutional investors.
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.