Oracle Corp. (NYSE:ORCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued 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.”

A number of other analysts have also commented on ORCL. Evercore ISI upgraded shares of Oracle Corp. from a “hold” rating to a “buy” rating in a research note on Wednesday, June 1st. JMP Securities restated a “sell” rating and set a $31.00 price target on shares of Oracle Corp. in a research note on Thursday, June 2nd. OTR Global upgraded shares of Oracle Corp. to a “positive” rating in a research note on Friday, June 3rd. JPMorgan Chase & Co. restated an “underperform” rating on shares of Oracle Corp. in a research note on Monday, June 6th. Finally, Nomura restated a “buy” rating and set a $44.00 price target on shares of Oracle Corp. in a research note on Thursday, June 9th. Three investment analysts have rated the stock with a sell rating, sixteen have given a hold rating, twenty-five have given a buy rating and one has issued a strong buy rating to the stock. The company currently has an average rating of “Buy” and an average target price of $44.88.

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Oracle Corp. (NYSE:ORCL) traded down 0.31% during mid-day trading on Tuesday, hitting $39.11. 5,956,102 shares of the stock were exchanged. The stock’s 50-day moving average is $40.93 and its 200 day moving average is $40.34. Oracle Corp. has a 52 week low of $33.13 and a 52 week high of $42.00. The company has a market capitalization of $161.09 billion, a PE ratio of 18.58 and a beta of 1.08.

Oracle Corp. (NYSE:ORCL) last announced its quarterly earnings results on Thursday, September 15th. The enterprise software provider reported $0.55 EPS for the quarter, missing the Zacks’ consensus estimate of $0.58 by $0.03. The business 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 company’s quarterly revenue was up 1.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.53 EPS. On average, analysts anticipate 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. Shareholders of record on Wednesday, October 12th will be paid a dividend of $0.15 per share. The ex-dividend date is Friday, October 7th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.53%. Oracle Corp.’s dividend payout ratio is currently 28.57%.

In other Oracle Corp. news, Director Naomi O. Seligman sold 25,000 shares of the business’s stock in a transaction dated Thursday, June 23rd. The stock was sold at an average price of $40.74, for a total transaction of $1,018,500.00. Following the completion of the sale, the director now directly owns 32,654 shares in the company, valued at approximately $1,330,323.96. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP John F. Fowler sold 500,000 shares of the business’s stock in a transaction dated Thursday, August 11th. The shares were sold at an average price of $41.17, for a total value of $20,585,000.00. Following the sale, the executive vice president now owns 119,645 shares of the company’s stock, valued at $4,925,784.65. The disclosure for this sale can be found here. Company insiders own 28.00% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new stake in Oracle Corp. during the fourth quarter worth about $1,067,769,000. Emerald Acquisition Ltd. purchased a new stake in Oracle Corp. during the second quarter worth about $540,085,000. Magellan Asset Management Ltd increased its stake in Oracle Corp. by 39.8% in the fourth quarter. Magellan Asset Management Ltd now owns 26,402,424 shares of the enterprise software provider’s stock worth $964,481,000 after buying an additional 7,512,925 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec increased its stake in Oracle Corp. by 48.0% in the second quarter. Caisse DE Depot ET Placement DU Quebec now owns 16,745,200 shares of the enterprise software provider’s stock worth $685,381,000 after buying an additional 5,430,200 shares in the last quarter. Finally, Bank of Montreal Can purchased a new stake in Oracle Corp. during the second quarter worth about $126,162,000. Institutional investors and hedge funds 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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