Oracle (NYSE:ORCL) Trading Down 5.2% Following Weak Earnings

Oracle Co. (NYSE:ORCL)’s share price fell 5.2% during trading on Tuesday following a dissappointing earnings announcement. The company traded as low as $137.70 and last traded at $141.10. 11,847,020 shares traded hands during mid-day trading, an increase of 0% from the average session volume of 11,831,542 shares. The stock had previously closed at $148.79.

The enterprise software provider reported $1.47 earnings per share for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.02). The firm had revenue of $14.13 billion for the quarter, compared to the consensus estimate of $14.40 billion. Oracle had a return on equity of 133.25% and a net margin of 21.16%. Oracle’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same quarter last year, the business posted $1.41 EPS.

Oracle Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 23rd. Stockholders of record on Thursday, April 10th will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.32%. The ex-dividend date of this dividend is Thursday, April 10th. This is a boost from Oracle’s previous quarterly dividend of $0.40. Oracle’s payout ratio is presently 39.12%.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on ORCL. BMO Capital Markets dropped their price objective on shares of Oracle from $205.00 to $175.00 and set a “market perform” rating for the company in a research note on Tuesday. BNP Paribas raised Oracle to a “strong-buy” rating in a research report on Tuesday, December 10th. Citigroup lowered their price objective on Oracle from $194.00 to $160.00 and set a “neutral” rating on the stock in a research note on Wednesday. Evercore ISI cut their target price on Oracle from $200.00 to $185.00 and set an “outperform” rating for the company in a research report on Tuesday. Finally, Stifel Nicolaus decreased their price target on Oracle from $175.00 to $150.00 and set a “hold” rating on the stock in a research report on Tuesday. Thirteen research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $176.85.

Insider Buying and Selling at Oracle

In other Oracle news, CEO Safra Catz sold 2,101,154 shares of the company’s stock in a transaction dated Wednesday, January 22nd. The stock was sold at an average price of $185.35, for a total value of $389,448,893.90. Following the sale, the chief executive officer now owns 1,118,592 shares in the company, valued at approximately $207,331,027.20. The trade was a 65.26 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 42.20% of the company’s stock.

Hedge Funds Weigh In On Oracle

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. R Squared Ltd acquired a new position in shares of Oracle in the 4th quarter worth approximately $25,000. Sunbeam Capital Management LLC acquired a new stake in shares of Oracle during the fourth quarter worth $30,000. Winch Advisory Services LLC raised its stake in Oracle by 89.7% during the fourth quarter. Winch Advisory Services LLC now owns 184 shares of the enterprise software provider’s stock worth $31,000 after buying an additional 87 shares during the last quarter. Hurley Capital LLC acquired a new position in Oracle in the fourth quarter valued at $33,000. Finally, Synergy Investment Management LLC bought a new stake in Oracle during the fourth quarter valued at $34,000. 42.44% of the stock is owned by institutional investors and hedge funds.

Oracle Stock Up 4.8 %

The stock’s 50-day simple moving average is $166.51 and its 200 day simple moving average is $169.49. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 5.65. The firm has a market cap of $422.81 billion, a P/E ratio of 36.96, a PEG ratio of 3.46 and a beta of 1.07.

Oracle Company Profile

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing.