Oracle (NYSE:ORCL) Shares Gap Up Following Strong Earnings

Oracle Co. (NYSE:ORCLGet Free Report)’s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $176.38, but opened at $189.96. Oracle shares last traded at $196.88, with a volume of 11,820,192 shares.

The enterprise software provider reported $1.70 EPS for the quarter, beating analysts’ consensus estimates of $1.64 by $0.06. Oracle had a return on equity of 133.25% and a net margin of 21.16%. The company had revenue of $15.90 billion for the quarter, compared to the consensus estimate of $15.58 billion. During the same quarter in the previous year, the business earned $1.63 earnings per share. The company’s revenue for the quarter was up 11.3% on a year-over-year basis.

Oracle Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 24th. Shareholders of record on Thursday, July 10th will be given a $0.50 dividend. The ex-dividend date of this dividend is Thursday, July 10th. This represents a $2.00 dividend on an annualized basis and a yield of 1.00%. Oracle’s dividend payout ratio is currently 46.95%.

Analyst Upgrades and Downgrades

A number of research firms have commented on ORCL. Morgan Stanley restated a “positive” rating on shares of Oracle in a research report on Monday. Stifel Nicolaus lifted their target price on Oracle from $150.00 to $180.00 and gave the company a “hold” rating in a research report on Thursday. Monness Crespi & Hardt raised Oracle from a “sell” rating to a “neutral” rating in a research note on Monday, March 3rd. Jefferies Financial Group lifted their price objective on Oracle from $190.00 to $200.00 and gave the company a “buy” rating in a research note on Monday. Finally, JPMorgan Chase & Co. lifted their price objective on Oracle from $135.00 to $185.00 and gave the company a “neutral” rating in a research note on Thursday. Twelve analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $192.30.

Get Our Latest Report on ORCL

Insider Transactions at Oracle

In other news, Director Leon E. Panetta sold 5,000 shares of the business’s stock in a transaction dated Friday, April 11th. The stock was sold at an average price of $129.77, for a total value of $648,850.00. Following the completion of the sale, the director now directly owns 58,090 shares of the company’s stock, valued at approximately $7,538,339.30. The trade was a 7.93% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Naomi O. Seligman sold 2,866 shares of the business’s stock in a transaction dated Monday, May 5th. The shares were sold at an average price of $149.53, for a total value of $428,552.98. Following the completion of the sale, the director now directly owns 31,764 shares of the company’s stock, valued at $4,749,670.92. The trade was a 8.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 27,366 shares of company stock valued at $4,015,723. 42.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Oracle

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Redmont Wealth Advisors LLC acquired a new position in Oracle during the 1st quarter worth approximately $27,000. Inlight Wealth Management LLC purchased a new stake in shares of Oracle in the first quarter valued at $28,000. Iron Horse Wealth Management LLC lifted its position in shares of Oracle by 284.9% in the first quarter. Iron Horse Wealth Management LLC now owns 204 shares of the enterprise software provider’s stock valued at $29,000 after acquiring an additional 151 shares in the last quarter. Sunbeam Capital Management LLC acquired a new position in shares of Oracle during the 4th quarter valued at about $30,000. Finally, Hurley Capital LLC acquired a new position in shares of Oracle during the 4th quarter valued at about $33,000. 42.44% of the stock is owned by hedge funds and other institutional investors.

Oracle Trading Up 13.2%

The business has a fifty day moving average price of $151.06 and a 200 day moving average price of $160.44. The company has a market capitalization of $558.47 billion, a PE ratio of 48.82, a P/E/G ratio of 3.46 and a beta of 1.32. The company has a debt-to-equity ratio of 5.65, a quick ratio of 0.81 and a current ratio of 0.81.

About Oracle

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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.

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