Oracle Co. (ORCL) Lowered to Sell at Zacks Investment Research
Oracle Co. (NYSE:ORCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
According to Zacks, “Oracle's soft outlook for the second quarter reflects slowing cloud momentum, particularly 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. Notably, the stock has underperformed the industry on a year-to-date basis. However, management stated that the company is wining market share against salesforce.com and Workday. Moreover, the launch of the next-generation autonomous database, which is supported by machine learning, is a key catalyst in our view. “
Several other research firms have also commented on ORCL. Wedbush reissued an “outperform” rating and issued a $58.00 price objective on shares of Oracle in a research note on Friday, September 15th. UBS AG reissued a “buy” rating and issued a $57.00 price objective (up previously from $52.00) on shares of Oracle in a research note on Friday, September 15th. J P Morgan Chase & Co set a $55.00 price objective on shares of Oracle and gave the company a “buy” rating in a research note on Friday, September 15th. Jefferies Group LLC raised their price objective on shares of Oracle from $60.00 to $61.00 and gave the company a “buy” rating in a research note on Friday, September 15th. Finally, Oppenheimer Holdings, Inc. reissued a “hold” rating on shares of Oracle in a research note on Friday, September 15th. Three research analysts have rated the stock with a sell rating, ten have assigned a hold rating and thirty-two have given a buy rating to the company. Oracle currently has a consensus rating of “Buy” and an average price target of $53.37.
Oracle (ORCL) traded up 0.10% during midday trading on Monday, hitting $49.30. 9,682,095 shares of the stock traded hands. The company’s 50-day moving average is $49.37 and its 200 day moving average is $47.81. The firm has a market cap of $205.73 billion, a P/E ratio of 21.44 and a beta of 1.05. Oracle has a 12-month low of $37.64 and a 12-month high of $53.14.
Oracle (NYSE:ORCL) last posted its quarterly earnings data on Thursday, September 14th. The enterprise software provider reported $0.62 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.60 by $0.02. Oracle had a net margin of 24.06% and a return on equity of 16.14%. The business had revenue of $9.21 billion during the quarter, compared to analyst estimates of $9.03 billion. During the same quarter last year, the firm posted $0.55 earnings per share. The business’s revenue for the quarter was up 7.0% compared to the same quarter last year. On average, analysts anticipate that Oracle will post $2.94 EPS for the current fiscal year.
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In related news, Director Hector Garcia-Molina sold 3,750 shares of the business’s stock in a transaction dated Monday, October 16th. The shares were sold at an average price of $48.70, for a total value of $182,625.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Dorian Daley sold 25,776 shares of the business’s stock in a transaction dated Thursday, September 21st. The shares were sold at an average price of $48.05, for a total transaction of $1,238,536.80. Following the completion of the transaction, the executive vice president now directly owns 30,977 shares of the company’s stock, valued at approximately $1,488,444.85. The disclosure for this sale can be found here. Insiders have sold a total of 305,776 shares of company stock valued at $14,822,112 in the last ninety days. Corporate insiders own 29.00% of the company’s stock.
Hedge funds have recently made changes to their positions in the stock. Acrospire Investment Management LLC raised its stake in Oracle by 947.4% in the 2nd quarter. Acrospire Investment Management LLC now owns 1,990 shares of the enterprise software provider’s stock valued at $100,000 after purchasing an additional 1,800 shares during the last quarter. Burt Wealth Advisors raised its stake in Oracle by 4.3% in the 2nd quarter. Burt Wealth Advisors now owns 2,151 shares of the enterprise software provider’s stock valued at $107,000 after purchasing an additional 88 shares during the last quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. raised its stake in Oracle by 1,150.0% in the 1st quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 2,500 shares of the enterprise software provider’s stock valued at $112,000 after purchasing an additional 2,300 shares during the last quarter. TrimTabs Asset Management LLC raised its stake in Oracle by 88.8% in the 1st quarter. TrimTabs Asset Management LLC now owns 2,687 shares of the enterprise software provider’s stock valued at $120,000 after purchasing an additional 1,264 shares during the last quarter. Finally, Baystate Wealth Management LLC raised its stake in Oracle by 9.2% in the 2nd quarter. Baystate Wealth Management LLC now owns 2,439 shares of the enterprise software provider’s stock valued at $123,000 after purchasing an additional 206 shares during the last quarter. 57.83% of the stock is owned by hedge funds and other institutional investors.
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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