Oracle Corporation (ORCL) Lowered to Sell at Zacks Investment Research
Oracle Corporation (NYSE:ORCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “Oracle's first-quarter fiscal 2018 results were impressive. The company is benefiting from significant momentum in the SaaS offerings. The company stated that it is wining market share against salesforce.com and Workday. We believe the company’s growing cloud market share will continue to drive top-line growth in the foreseeable future. Moreover, the upcoming launch of the next-generation autonomous database, which is supported by machine learning, is a key catalyst. However, soft outlook for the second quarter reflects slowing cloud momentum, particualrly due to increasing competition from Microsoft Azure and Amazon Web Services. Moreover, higher investments on PaaS and IaaS will keep margins under pressure in the near term. We note that the stock has underperformed the industry on a year-to-date basis.”
Other analysts have also recently issued research reports about the stock. Rosenblatt Securities reaffirmed a “buy” rating and set a $55.00 price objective on shares of Oracle Corporation in a research note on Wednesday, June 21st. Jefferies Group LLC reaffirmed a “buy” rating and set a $52.00 price objective on shares of Oracle Corporation in a research note on Tuesday, June 20th. Bank of America Corporation reaffirmed a “buy” rating and set a $62.00 price objective (up previously from $54.00) on shares of Oracle Corporation in a research note on Thursday, June 22nd. Canaccord Genuity cut shares of Oracle Corporation to a “buy” rating and upped their price objective for the company from $49.00 to $56.00 in a research note on Thursday, June 22nd. Finally, UBS AG reaffirmed a “buy” rating and set a $52.00 price objective (up previously from $48.00) on shares of Oracle Corporation in a research note on Thursday, June 22nd. They noted that the move was a valuation call. Three analysts have rated the stock with a sell rating, eleven have issued a hold rating and thirty-one have given a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average target price of $53.37.
Shares of Oracle Corporation (NYSE:ORCL) traded up 0.59% during midday trading on Tuesday, reaching $49.15. The company’s stock had a trading volume of 8,011,745 shares. The stock has a 50-day moving average of $49.43 and a 200 day moving average of $47.69. Oracle Corporation has a 12-month low of $37.64 and a 12-month high of $53.14. The firm has a market capitalization of $205.11 billion, a P/E ratio of 21.38 and a beta of 1.05.
Oracle Corporation (NYSE:ORCL) last released its quarterly earnings results on Thursday, September 14th. The enterprise software provider reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.02. Oracle Corporation had a net margin of 25.34% and a return on equity of 20.55%. The firm had revenue of $9.21 billion during the quarter, compared to the consensus estimate of $9.03 billion. During the same quarter in the prior year, the firm earned $0.55 EPS. The company’s revenue for the quarter was up 7.0% on a year-over-year basis. Equities research analysts predict that Oracle Corporation will post $2.94 EPS for the current fiscal year.
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In other Oracle Corporation news, Director Hector Garcia-Molina sold 3,750 shares of the firm’s stock in a transaction on Friday, September 15th. The shares were sold at an average price of $50.35, for a total transaction of $188,812.50. Following the transaction, the director now directly owns 18,125 shares of the company’s stock, valued at approximately $912,593.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jeffrey Berg sold 45,000 shares of the firm’s stock in a transaction on Thursday, September 21st. The stock was sold at an average price of $48.03, for a total transaction of $2,161,350.00. The disclosure for this sale can be found here. Insiders have sold a total of 305,776 shares of company stock worth $14,822,112 over the last three months. 29.00% of the stock is currently owned by insiders.
A number of institutional investors have recently modified their holdings of ORCL. Acrospire Investment Management LLC boosted its holdings in shares of Oracle Corporation by 947.4% in the second quarter. Acrospire Investment Management LLC now owns 1,990 shares of the enterprise software provider’s stock valued at $100,000 after acquiring an additional 1,800 shares in the last quarter. Burt Wealth Advisors boosted its holdings in shares of Oracle Corporation by 4.3% in the second quarter. Burt Wealth Advisors now owns 2,151 shares of the enterprise software provider’s stock valued at $107,000 after acquiring an additional 88 shares in the last quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. boosted its holdings in shares of Oracle Corporation by 1,150.0% in the first quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 2,500 shares of the enterprise software provider’s stock valued at $112,000 after acquiring an additional 2,300 shares in the last quarter. TrimTabs Asset Management LLC boosted its holdings in shares of Oracle Corporation by 88.8% in the first quarter. TrimTabs Asset Management LLC now owns 2,687 shares of the enterprise software provider’s stock valued at $120,000 after acquiring an additional 1,264 shares in the last quarter. Finally, Baystate Wealth Management LLC boosted its holdings in shares of Oracle Corporation by 9.2% in the second quarter. Baystate Wealth Management LLC now owns 2,439 shares of the enterprise software provider’s stock valued at $123,000 after acquiring an additional 206 shares in the last quarter. 57.83% of the stock is currently owned by institutional investors.
About Oracle Corporation
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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