Oracle Corp. (ORCL) Cut to Sell at Zacks Investment Research
Oracle Corp. (NYSE:ORCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Oracle's first-quarter 2017 results failed to impress us. Although cloud revenue growth was strong, weak on-premise software revenues dragged down the results. Oracle is in the middle of a business transition from licensing to cloud which will be accretive to long term growth. However, it is a drag on the financials at present. Adding to that, Oracle seems to have hit a bad patch as far as litigation is concerned. Earlier this year, it lost a JAVA APIs lawsuit against Alphabet’s Google and another Itanium software lawsuit against HPE. Although, Oracle is set to to re-appeal against these verdicts, the adverse decisions will remain an overhang on the stock. Nevertheless, the ongoing momentum at SaaS and PaaS provides signficant growth opportunity. The introduction of Generation2 IaaS data centers are expected to improve Oracle’s competitive prowess against Amazon Web Services and will drive market share going ahead.”
Several other research firms have also recently issued reports on ORCL. Sanford C. Bernstein restated an “outperform” rating and set a $51.00 target price on shares of Oracle Corp. in a research note on Friday, July 15th. Macquarie reiterated an “outperform” rating on shares of Oracle Corp. in a research note on Tuesday, July 19th. Atlantic Securities cut shares of Oracle Corp. from an “overweight” rating to a “neutral” rating and lowered their price objective for the stock from $48.00 to $44.00 in a research note on Tuesday, July 19th. BTIG Research increased their price objective on shares of Oracle Corp. from $44.00 to $47.00 and gave the stock a “buy” rating in a research note on Thursday, July 14th. Finally, Vetr cut shares of Oracle Corp. from a “buy” rating to a “hold” rating and set a $41.24 price objective on the stock. in a research note on Monday, August 15th. Three analysts have rated the stock with a sell rating, sixteen have issued a hold rating, twenty-five have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Oracle Corp. currently has an average rating of “Buy” and a consensus price target of $44.88.
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Oracle Corp. (NYSE:ORCL) traded down 0.2970% during trading on Tuesday, hitting $39.1135. 7,021,385 shares of the stock traded hands. The firm has a 50-day moving average price of $40.93 and a 200 day moving average price of $40.34. The company has a market cap of $161.11 billion, a P/E ratio of 18.5812 and a beta of 1.08. Oracle Corp. has a 52-week low of $33.13 and a 52-week high of $42.00.
Oracle Corp. (NYSE:ORCL) last posted its earnings results on Thursday, September 15th. The enterprise software provider reported $0.55 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.58 by $0.03. The company had revenue of $8.60 billion for the quarter. Oracle Corp. had a net margin of 24.16% and a return on equity of 22.22%. The business’s revenue for the quarter was up 1.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.53 EPS. On average, equities analysts expect that Oracle Corp. will post $2.65 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 26th. Investors of record on Wednesday, October 12th will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 1.53%. The ex-dividend date of this dividend is Friday, October 7th. Oracle Corp.’s payout ratio is 28.57%.
In other Oracle Corp. news, Director Hector Garcia-Molina sold 3,750 shares of the company’s stock in a transaction on Friday, July 15th. The stock was sold at an average price of $41.78, for a total value of $156,675.00. Following the completion of the sale, the director now directly owns 8,281 shares in the company, valued at approximately $345,980.18. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Naomi O. Seligman sold 25,000 shares of the company’s stock in a transaction on Thursday, June 23rd. The shares were sold at an average price of $40.74, for a total value of $1,018,500.00. Following the completion of the sale, the director now owns 32,654 shares of the company’s stock, valued at $1,330,323.96. The disclosure for this sale can be found here. Corporate insiders own 28.00% of the company’s stock.
A number of hedge funds have recently modified their holdings of ORCL. Check Capital Management Inc. CA boosted its stake in shares of Oracle Corp. by 1.8% in the second quarter. Check Capital Management Inc. CA now owns 714,129 shares of the enterprise software provider’s stock valued at $29,229,000 after buying an additional 12,676 shares during the last quarter. DAVENPORT & Co LLC boosted its stake in shares of Oracle Corp. by 8.1% in the second quarter. DAVENPORT & Co LLC now owns 852,620 shares of the enterprise software provider’s stock valued at $34,898,000 after buying an additional 64,091 shares during the last quarter. National Pension Service boosted its stake in shares of Oracle Corp. by 4.2% in the first quarter. National Pension Service now owns 1,765,267 shares of the enterprise software provider’s stock valued at $72,217,000 after buying an additional 71,804 shares during the last quarter. AXA boosted its stake in shares of Oracle Corp. by 0.3% in the first quarter. AXA now owns 1,814,706 shares of the enterprise software provider’s stock valued at $74,240,000 after buying an additional 4,952 shares during the last quarter. Finally, Factory Mutual Insurance Co. boosted its stake in shares of Oracle Corp. by 22.3% in the first quarter. Factory Mutual Insurance Co. now owns 2,150,920 shares of the enterprise software provider’s stock valued at $87,994,000 after buying an additional 392,000 shares during the last quarter. Institutional investors own 58.00% of the company’s stock.
About Oracle Corp.
Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support.
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