Oracle (NYSE:ORCL) Stock Price Down 2.4% – Time to Sell?

Oracle Corporation (NYSE:ORCL)’s share price fell 2.4% during mid-day trading on Friday . The company traded as low as $139.26 and last traded at $140.6870. Approximately 26,532,952 shares changed hands during mid-day trading, a decline of 6% from the average daily volume of 28,253,941 shares. The stock had previously closed at $144.22.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s record AI backlog, stronger fiscal 2027 outlook, and expanding cloud businesses are being highlighted as reasons long-term investors may want to hold the stock despite the recent selloff. Article Title
• Positive Sentiment: Bernstein reiterated support for Oracle, and several articles point to Oracle’s massive cloud backlog and AI-related demand as evidence that the company still has meaningful growth potential. Article Title
• Neutral Sentiment: Oracle announced new partnerships and innovation initiatives, including IMSA Labs and a racing-focused cloud studio, which expand its cloud ecosystem but are not yet material enough to move the stock on their own. Article Title
• Negative Sentiment: S&P Global cut Oracle’s credit rating closer to junk, reinforcing worries about the company’s large debt burden and financing needs for its AI infrastructure buildout. Article Title
• Negative Sentiment: Recent commentary suggests Oracle may be facing concentration risk in its backlog and investor concern over the scale of spending required to support AI growth, which is keeping pressure on the shares. Article Title

Wall Street Analyst Weigh In

ORCL has been the subject of several recent analyst reports. TD Cowen boosted their price objective on shares of Oracle from $250.00 to $300.00 and gave the company a “buy” rating in a research note on Monday, June 8th. Arete Research set a $255.00 price target on shares of Oracle and gave the company a “buy” rating in a report on Thursday, May 7th. KeyCorp reaffirmed an “overweight” rating on shares of Oracle in a report on Thursday, June 11th. Weiss Ratings upgraded Oracle from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, May 29th. Finally, Bank of America lifted their price objective on Oracle from $200.00 to $240.00 and gave the company a “buy” rating in a research note on Tuesday, June 9th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Oracle presently has an average rating of “Moderate Buy” and an average price target of $268.27.

Oracle Stock Down 2.4%

The stock’s fifty day moving average price is $183.07 and its 200 day moving average price is $171.86. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 3.21. The stock has a market cap of $405.24 billion, a P/E ratio of 24.13, a price-to-earnings-growth ratio of 0.88 and a beta of 1.72.

Oracle (NYSE:ORCL) last announced its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.96 by $0.15. The company had revenue of $19.18 billion during the quarter, compared to analyst estimates of $19.10 billion. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The firm’s quarterly revenue was up 20.6% compared to the same quarter last year. During the same period in the previous year, the business earned $1.70 earnings per share. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, research analysts forecast that Oracle Corporation will post 6.47 earnings per share for the current fiscal year.

Oracle Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be given a dividend of $0.50 per share. The ex-dividend date is Friday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. Oracle’s dividend payout ratio is 34.31%.

Insider Buying and Selling

In other Oracle news, EVP Stuart Levey sold 15,000 shares of Oracle stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $176.19, for a total value of $2,642,850.00. Following the transaction, the executive vice president directly owned 3,429 shares of the company’s stock, valued at $604,155.51. The trade was a 81.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Vice Chairman Jeffrey Henley sold 400,000 shares of the business’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total transaction of $63,664,000.00. Following the completion of the transaction, the insider owned 400,000 shares in the company, valued at $63,664,000. The trade was a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company’s stock.

Institutional Trading of Oracle

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ORCL. Norges Bank bought a new position in Oracle in the fourth quarter worth about $4,336,031,000. Capital Research Global Investors grew its holdings in shares of Oracle by 29.3% during the 4th quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider’s stock worth $5,874,070,000 after acquiring an additional 6,826,299 shares during the period. Vanguard Group Inc. grew its holdings in shares of Oracle by 3.5% during the 4th 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. Cardano Risk Management B.V. raised its position in shares of Oracle by 882.3% in the 4th quarter. Cardano Risk Management B.V. now owns 4,991,010 shares of the enterprise software provider’s stock worth $972,798,000 after acquiring an additional 4,482,934 shares in the last quarter. Finally, FIL Ltd lifted its stake in shares of Oracle by 1,605.7% in the 4th quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider’s stock valued at $775,048,000 after purchasing an additional 3,743,314 shares during the period. Hedge funds and other institutional investors own 42.44% of the company’s stock.

About Oracle

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.