Oracle Trading Down 4.4% Following Weak Earnings (ORCL)
Shares of Oracle (NASDAQ:ORCL) dropped 4.4% during mid-day trading on Friday after the company announced weaker than expected quarterly earnings, American Banking News reports. The stock traded as low as $39.93 and last traded at $40.62, with a volume of 45,066,133 shares trading hands. The stock had previously closed at $42.51.
The company reported $0.92 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.95 by $0.03. The company had revenue of $11.33 billion for the quarter, compared to the consensus estimate of $11.48 billion. During the same quarter in the prior year, the company posted $0.87 earnings per share. The company’s quarterly revenue was up 3.3% on a year-over-year basis.
The company also recently announced a quarterly dividend, which is scheduled for Wednesday, July 30th. Investors of record on Wednesday, July 9th will be paid a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 1.13%.
ORCL has been the subject of a number of recent research reports. Analysts at Goldman Sachs reiterated a “buy” rating on shares of Oracle in a research note on Friday. Separately, analysts at Citigroup Inc. downgraded shares of Oracle from a “buy” rating to a “neutral” rating in a research note on Friday. They now have a $41.00 price target on the stock, down previously from $44.00. Finally, analysts at Canaccord Genuity raised their price target on shares of Oracle from $43.00 to $48.00 in a research note on Tuesday. They now have a “buy” rating on the stock. One investment analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and seventeen have issued a buy rating to the company’s stock. Oracle currently has a consensus rating of “Buy” and an average price target of $42.44.
In other Oracle news, Director Hector Garcia-Molina sold 1,250 shares of Oracle stock on the open market in a transaction that occurred on Monday, June 16th. The shares were sold at an average price of $42.00, for a total value of $52,500.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.
The stock has a 50-day moving average of $41.86 and a 200-day moving average of $38.97. The company has a market cap of $181.1 billion and a price-to-earnings ratio of 17.77. Oracle also was the recipient of unusually large options trading activity on Tuesday. Stock investors bought 15,471 call options on the stock. This represents an increase of 108% compared to the average volume of 7,424 call options.
Oracle Corporation is a provider of enterprise software and computer hardware products and services. The Company provides cloud services as well as software and hardware products to other cloud service providers, both public and private.
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