Zacks Investment Research cut shares of Oracle (NYSE:ORCL) from a hold rating to a sell rating in a research note issued to investors on Tuesday morning.
According to Zacks, “Oracle’s gross margin expansion is hurt by higher investments on IaaS platform. Moreover, management provided soft outlook for the cloud business, which will remain an overhang on the shares in the near term. Shares of the company have underperformed the industry in the past year. Further, estimates have remained stable lately ahead of the company’s Q4 earnings release. However, Oracle is benefiting from strong adoption of its cloud-based solutions. We believe that the company’s growing cloud market share will continue to drive top-line growth in the long haul. We note that partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele. Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS. The company has positive record of earnings surprises in recent quarters.”
ORCL has been the subject of a number of other reports. TheStreet downgraded Oracle from a b+ rating to a c+ rating in a research report on Monday, March 19th. Credit Suisse Group restated a buy rating and set a $62.00 price objective on shares of Oracle in a research report on Sunday, February 18th. JPMorgan Chase & Co. restated a buy rating and set a $55.00 price objective on shares of Oracle in a research report on Tuesday, March 20th. ValuEngine upgraded Oracle from a hold rating to a buy rating in a research report on Friday, February 2nd. Finally, Cleveland Research downgraded Oracle from a buy rating to a neutral rating in a research report on Tuesday, February 20th. One research analyst has rated the stock with a sell rating, sixteen have given a hold rating and twenty-three have issued a buy rating to the stock. Oracle has an average rating of Buy and a consensus price target of $56.30.
Oracle stock opened at $47.00 on Tuesday. The company has a quick ratio of 4.30, a current ratio of 4.33 and a debt-to-equity ratio of 1.16. The stock has a market capitalization of $194.15 billion, a price-to-earnings ratio of 18.88, a PEG ratio of 1.73 and a beta of 1.15. Oracle has a 12 month low of $43.74 and a 12 month high of $53.48.
Oracle (NYSE:ORCL) last issued its quarterly earnings data on Monday, March 19th. The enterprise software provider reported $0.83 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.72 by $0.11. Oracle had a return on equity of 21.77% and a net margin of 9.25%. The company had revenue of $9.78 billion during the quarter, compared to the consensus estimate of $9.77 billion. During the same period last year, the company earned $0.69 earnings per share. The firm’s revenue was up 5.4% compared to the same quarter last year. research analysts anticipate that Oracle will post 2.76 EPS for the current year.
Oracle announced that its Board of Directors has approved a share buyback plan on Friday, February 2nd that permits the company to repurchase $12.00 billion in shares. This repurchase authorization permits the enterprise software provider to buy shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its stock is undervalued.
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, May 1st. Shareholders of record on Tuesday, April 17th were paid a $0.19 dividend. The ex-dividend date of this dividend was Monday, April 16th. This represents a $0.76 dividend on an annualized basis and a yield of 1.62%. Oracle’s dividend payout ratio (DPR) is presently 30.52%.
In related news, insider Edward Screven sold 500,000 shares of Oracle stock in a transaction that occurred on Thursday, May 10th. The stock was sold at an average price of $46.89, for a total transaction of $23,445,000.00. Following the transaction, the insider now owns 2,644,595 shares of the company’s stock, valued at $124,005,059.55. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Hector Garcia-Molina sold 3,750 shares of Oracle stock in a transaction that occurred on Thursday, March 15th. The shares were sold at an average price of $52.19, for a total value of $195,712.50. Following the transaction, the director now directly owns 18,125 shares in the company, valued at approximately $945,943.75. The disclosure for this sale can be found here. Insiders sold 2,557,015 shares of company stock valued at $117,480,315 in the last three months. Insiders own 29.00% of the company’s stock.
Large investors have recently made changes to their positions in the stock. Tarbox Family Office Inc. lifted its holdings in Oracle by 71.1% during the fourth quarter. Tarbox Family Office Inc. now owns 2,322 shares of the enterprise software provider’s stock worth $110,000 after acquiring an additional 965 shares during the period. Centaurus Financial Inc. bought a new stake in Oracle during the first quarter worth $106,000. Rainier Group Investment Advisory LLC bought a new stake in Oracle during the first quarter worth $106,000. Wealthcare Advisory Partners LLC lifted its holdings in Oracle by 81,200.0% during the third quarter. Wealthcare Advisory Partners LLC now owns 2,439 shares of the enterprise software provider’s stock worth $118,000 after acquiring an additional 2,436 shares during the period. Finally, Cerebellum GP LLC bought a new stake in Oracle during the fourth quarter worth $126,000. 56.43% of the stock is currently owned by institutional investors.
Oracle Company Profile
Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure technologies for information technology (IT) environments worldwide. It provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service.
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