Oracle (NYSE:ORCL) Shares Down 3% – Here’s Why

Oracle Corporation (NYSE:ORCL)’s stock price traded down 3% during trading on Thursday . The company traded as low as $150.36 and last traded at $152.8180. 36,062,270 shares traded hands during mid-day trading, an increase of 31% from the average session volume of 27,455,092 shares. The stock had previously closed at $157.53.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s record $638 billion backlog is reinforcing confidence in future revenue, with articles noting that AI cloud demand and surging cloud infrastructure sales could provide years of visibility and support long-term growth. Oracle’s Contract Backlog Swells: Is Long-Term Revenue Growth Secured?
• Positive Sentiment: Oracle also announced new defense-related partnerships, expanding its ecosystem for mission-ready AI, cyber, and secure cloud capabilities, which could strengthen Oracle Cloud Infrastructure adoption. Oracle Strengthens Defense Ecosystem to Help Emerging Technology Companies Scale Mission-Ready Capabilities
• Positive Sentiment: Oracle Health’s collaboration with Theator extends AI into surgical workflows, adding another example of Oracle monetizing AI across vertical markets and potentially deepening enterprise demand. Oracle Health Extends AI into the Operating Room in Collaboration with Theator
• Neutral Sentiment: Several commentary pieces argue Oracle could still become a much larger company, but they also note that its path depends heavily on execution and a few large contracts, making the upside story more speculative. Can Oracle Become a $1 Trillion Company?
• Negative Sentiment: Oracle’s announcement of about 21,000 job cuts is weighing on sentiment, with investors concerned that the AI transition may be disrupting the workforce and signaling broader restructuring pressure. ORCL Stock Layoffs: What to Know as Oracle Cuts 21,000 Jobs
• Negative Sentiment: Bearish coverage is also highlighting Oracle’s heavy spending, capital intensity, and possible shareholder dilution, which could keep pressure on the stock despite strong backlog growth. Oracle: Becoming A Highly Capital-Intensive NG-Dependent Wholesale Colocation Utility (Rating Downgrade)

Wall Street Analyst Weigh In

Several analysts have recently issued reports on ORCL shares. UBS Group upped their target price on shares of Oracle from $250.00 to $285.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Robert W. Baird lowered their price objective on Oracle from $300.00 to $200.00 and set an “outperform” rating for the company in a research note on Tuesday, March 10th. Guggenheim reiterated a “buy” rating and issued a $400.00 target price on shares of Oracle in a report on Thursday, June 11th. Barclays boosted their target price on Oracle from $240.00 to $250.00 and gave the company an “overweight” rating in a research report on Thursday, June 11th. Finally, Monness Crespi & Hardt restated a “hold” rating on shares of Oracle in a report on Wednesday, March 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $268.27.

Oracle Stock Down 3.0%

The firm has a market cap of $440.19 billion, a PE ratio of 26.21, a price-to-earnings-growth ratio of 1.04 and a beta of 1.65. The company has a 50-day simple moving average of $190.16 and a 200-day simple moving average of $176.34. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.35.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, topping the consensus estimate of $1.96 by $0.15. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The firm had revenue of $19.18 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same period in the prior year, the business posted $1.70 earnings per share. The company’s revenue for the quarter was up 20.6% on a year-over-year basis. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. Analysts expect that Oracle Corporation will post 6.45 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a $0.50 dividend. The ex-dividend date is Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a yield of 1.3%. Oracle’s dividend payout ratio (DPR) is presently 34.31%.

Insider Buying and Selling at Oracle

In other news, EVP Stuart Levey sold 15,000 shares of the business’s stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $176.19, for a total transaction of $2,642,850.00. Following the completion of the sale, the executive vice president directly owned 3,429 shares of the company’s stock, valued at approximately $604,155.51. The trade was a 81.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 40.90% of the company’s stock.

Institutional Investors Weigh In On Oracle

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC boosted its holdings in shares of Oracle by 189.3% in the fourth quarter. Brighton Jones LLC now owns 153,580 shares of the enterprise software provider’s stock valued at $25,593,000 after purchasing an additional 100,494 shares during the period. Revolve Wealth Partners LLC raised its position in Oracle by 8.1% during the 4th quarter. Revolve Wealth Partners LLC now owns 5,418 shares of the enterprise software provider’s stock valued at $903,000 after purchasing an additional 404 shares in the last quarter. Sivia Capital Partners LLC raised its position in Oracle by 21.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,348 shares of the enterprise software provider’s stock valued at $951,000 after purchasing an additional 768 shares in the last quarter. United Bank lifted its holdings in shares of Oracle by 6.8% in the 2nd quarter. United Bank now owns 15,038 shares of the enterprise software provider’s stock worth $3,288,000 after buying an additional 963 shares during the period. Finally, Schnieders Capital Management LLC. lifted its holdings in shares of Oracle by 19.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 52,856 shares of the enterprise software provider’s stock worth $11,556,000 after buying an additional 8,530 shares during the period. 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.