Oracle (NYSE:ORCL) Trading Down 3.4% After Analyst Downgrade

Oracle Corporation (NYSE:ORCL) shares were down 3.4% on Tuesday after BMO Capital Markets lowered their price target on the stock from $270.00 to $205.00. BMO Capital Markets currently has an outperform rating on the stock. Oracle traded as low as $151.90 and last traded at $154.65. Approximately 42,937,506 shares were traded during mid-day trading, an increase of 69% from the average daily volume of 25,463,674 shares. The stock had previously closed at $160.06.

Several other research analysts have also recently weighed in on ORCL. Robert W. Baird dropped their price objective on shares of Oracle from $365.00 to $315.00 and set an “outperform” rating for the company in a research report on Tuesday, November 18th. KeyCorp dropped their target price on Oracle from $350.00 to $300.00 and set an “overweight” rating for the company in a research report on Thursday, December 11th. Cantor Fitzgerald decreased their price target on Oracle from $400.00 to $320.00 and set an “overweight” rating on the stock in a report on Thursday, December 11th. Scotiabank lowered their price objective on Oracle from $260.00 to $220.00 and set a “sector outperform” rating for the company in a research report on Tuesday. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $375.00 price objective on shares of Oracle in a report on Wednesday, November 26th. Three analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $296.03.

Insider Buying and Selling

In other Oracle news, CEO Clayton M. Magouyrk sold 10,000 shares of the stock in a transaction on Friday, December 19th. The shares were sold at an average price of $192.52, for a total value of $1,925,200.00. Following the sale, the chief executive officer directly owned 144,030 shares in the company, valued at approximately $27,728,655.60. This trade represents a 6.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Mark Hura sold 15,000 shares of the business’s stock in a transaction on Wednesday, December 24th. The shares were sold at an average price of $196.89, for a total transaction of $2,953,350.00. Following the completion of the transaction, the insider directly owned 234,077 shares of the company’s stock, valued at $46,087,420.53. This trade represents a 6.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 62,223 shares of company stock valued at $12,136,764. Insiders own 40.90% of the company’s stock.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle Health won a multi-organization pilot in Canada for its Clinical AI Agent, validating commercial traction for Oracle’s healthcare AI products. Multiple Canadian Healthcare Organizations Select Oracle Health Clinical AI Agent
• Positive Sentiment: Oracle’s recent $25B bond offering reportedly attracted heavy demand, indicating strong investor appetite for its debt and suggesting financing channels are open. Oracle Stock (ORCL) Gains as $25B Bond Offering Attracts Heavy Demand
• Positive Sentiment: Some sell-side firms (e.g., Barclays) have reiterated bullish ratings and high price targets, implying analysts still see upside if Oracle executes its AI/data-center strategy. Barclays Reiterates Overweight on Oracle
• Neutral Sentiment: Oracle announced an equity distribution agreement and senior notes issuance to fund its plans — this provides capital but increases near-term financing activity and complexity. Oracle Bolsters Financing with Major Senior Notes Issuance
• Neutral Sentiment: Oracle continues product and go-to-market pushes (AI banking platform, enterprise AI agents) that could drive long-term growth but require heavy near-term capex. Oracle Reimagines Banking for the AI Era
• Neutral Sentiment: Strategic commentary ties Oracle’s massive data-center and power plans to a structural shift (e.g., MarketBeat piece on companies funding power and SMRs); long-term strategic rationale exists but is execution- and timeline-dependent. The Atomic Pivot: AI’s $50 Billion Power Move
• Negative Sentiment: Markets punished Oracle after management outlined plans to raise roughly $45–50B for AI infrastructure (debt and equity), stoking dilution and leverage fears and sparking the recent sell-off. Oracle (ORCL) Is Down 11.6% After Unveiling a US$45–50 Billion AI Infrastructure Capital Plan
• Negative Sentiment: Multiple law firms have filed or are soliciting clients for securities class actions tied to Oracle’s disclosures (senior notes/offering documents and the June–Dec 2025 class period), adding legal risk and headline pressure. Kessler Topaz Files Securities Fraud Class Action Against Oracle
• Negative Sentiment: Reports say banks are exploring selling billions in loans tied to Oracle’s data centers and the company may cut up to 30,000 jobs — both raise execution and integration risks and amplify downside sentiment. Oracle Stock (ORCL) Slips as Banks Explore Selling Its Data Center Loans Oracle May Slash Up to 30,000 Jobs
• Negative Sentiment: Analysts have trimmed price targets (BMO, Scotiabank among them) and commentary highlights investor anxiety about the size/timing of the capital raise and AI execution — contributing to the stock’s decline. Oracle Price Target Lowered at BMO

Institutional Investors Weigh In On Oracle

Several large investors have recently modified their holdings of the business. Norges Bank bought a new position in Oracle in the second quarter valued at approximately $4,275,378,000. Jennison Associates LLC raised its holdings in shares of Oracle by 2,062.4% during the third quarter. Jennison Associates LLC now owns 9,227,252 shares of the enterprise software provider’s stock worth $2,595,072,000 after acquiring an additional 8,800,546 shares during the period. Vanguard Group Inc. raised its holdings in shares of Oracle by 3.5% during the fourth quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider’s stock worth $34,070,674,000 after acquiring an additional 5,841,584 shares during the period. American Century Companies Inc. lifted its position in Oracle by 333.7% in the 3rd quarter. American Century Companies Inc. now owns 5,238,006 shares of the enterprise software provider’s stock valued at $1,473,137,000 after acquiring an additional 4,030,382 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in Oracle by 42.1% in the 2nd quarter. Invesco Ltd. now owns 8,839,166 shares of the enterprise software provider’s stock worth $1,932,507,000 after purchasing an additional 2,619,722 shares during the period. 42.44% of the stock is currently owned by institutional investors.

Oracle Stock Performance

The stock has a fifty day simple moving average of $191.31 and a 200-day simple moving average of $235.52. The stock has a market cap of $421.63 billion, a P/E ratio of 27.58, a PEG ratio of 1.35 and a beta of 1.64. The company has a debt-to-equity ratio of 3.28, a quick ratio of 0.91 and a current ratio of 0.91.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Wednesday, December 10th. The enterprise software provider reported $2.26 EPS for the quarter, beating analysts’ consensus estimates of $1.64 by $0.62. The company had revenue of $16.06 billion for the quarter, compared to analyst estimates of $16.19 billion. Oracle had a return on equity of 70.60% and a net margin of 25.28%.The company’s quarterly revenue was up 14.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.47 earnings per share. On average, equities analysts expect that Oracle Corporation will post 5 earnings per share for the current year.

Oracle Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, January 9th were issued a $0.50 dividend. The ex-dividend date was Friday, January 9th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. Oracle’s dividend payout ratio (DPR) is 37.59%.

Oracle Company Profile

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.