Oracle (NYSE:ORCL) Shares Up 8.4% – Here’s What Happened

Oracle Corporation (NYSE:ORCL)’s share price was up 8.4% during mid-day trading on Thursday . The company traded as high as $128.34 and last traded at $127.5950. Approximately 37,002,297 shares traded hands during mid-day trading, an increase of 26% from the average session volume of 29,349,928 shares. The stock had previously closed at $117.74.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Expanded Google Cloud AI partnership: Oracle and Google Cloud will make Google’s Gemini models available across Oracle Fusion Cloud Applications and NetSuite. The integration could help thousands of enterprise customers automate workflows, improve decision-making and build agentic applications, strengthening Oracle’s cloud platform and AI monetization prospects. Oracle to Make Gemini Models Available to Thousands of Enterprise Applications Customers
• Positive Sentiment: Analysts see substantial upside: Coverage points to a consensus price target near $248 and notes that three Wall Street analysts have targets of $400. The forecasts reflect confidence that Oracle’s cloud growth and AI-related demand are not fully reflected in its depressed valuation. 3 Wall Street Analysts Have Oracle Going to $400
• Positive Sentiment: Backlog viewed as undervalued: Bullish commentary argues that Oracle’s large, OCI-driven remaining performance obligations and cloud backlog are receiving little credit from the market. If converted into revenue as expected, the backlog could support stronger long-term growth. Oracle’s Massive Backlog Gets No Credit
• Neutral Sentiment: Broader AI-cloud rebound: Oracle’s move occurred alongside a sharp recovery in AI infrastructure stocks, suggesting that sector-wide risk appetite and technical factors are also contributing, rather than the movement being driven solely by company fundamentals. AI Cloud Names Snap Back
• Negative Sentiment: Debt and capital-spending risks remain: Reporting highlights the substantial debt Oracle has taken on to build data centers for AI workloads. Heavy investment could pressure cash flow and returns if cloud demand or utilization falls short of expectations. Five Takeaways From the Times Investigation Into Larry Ellison’s A.I. Gamble

Analysts Set New Price Targets

A number of research firms recently commented on ORCL. Sanford C. Bernstein increased their target price on shares of Oracle from $319.00 to $325.00 and gave the company an “outperform” rating in a research report on Thursday, June 11th. CLSA initiated coverage on shares of Oracle in a report on Monday, July 20th. They issued a “hold” rating and a $145.00 price target on the stock. Wolfe Research reaffirmed an “outperform” rating and set a $225.00 price target on shares of Oracle in a research report on Thursday, June 11th. Morgan Stanley reiterated a “mixed” rating on shares of Oracle in a report on Thursday, June 11th. Finally, Bank of America raised their price objective on Oracle from $200.00 to $240.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $265.03.

Oracle Stock Up 1.9%

The company has a market capitalization of $374.42 billion, a price-to-earnings ratio of 22.30, a PEG ratio of 0.80 and a beta of 1.72. The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.12 and a current ratio of 1.12. The business’s 50 day moving average is $163.86 and its 200 day moving average is $164.42.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.96 by $0.15. The business had revenue of $19.18 billion for 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%. Oracle’s revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.70 EPS. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. Sell-side analysts anticipate that Oracle Corporation will post 6.47 earnings per share for the current year.

Oracle Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were given a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend was Friday, July 10th. Oracle’s dividend payout ratio is presently 34.31%.

Insider Transactions at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the firm’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total value 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. This trade represents a 50.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Norges Bank purchased a new position in Oracle during the 4th quarter worth approximately $4,336,031,000. Capital Research Global Investors boosted its holdings in shares of Oracle by 29.3% in the 4th quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider’s stock valued at $5,874,070,000 after acquiring an additional 6,826,299 shares during the last quarter. Vanguard Group Inc. boosted its holdings in shares of Oracle by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider’s stock valued at $34,070,674,000 after acquiring an additional 5,841,584 shares during the last quarter. Cardano Risk Management B.V. increased its stake in shares of Oracle by 882.3% in the fourth 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 during the period. Finally, FIL Ltd increased its stake in shares of Oracle by 1,605.7% in the fourth quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider’s stock worth $775,048,000 after acquiring an additional 3,743,314 shares during the period. 42.44% of the stock is owned by institutional investors and hedge funds.

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.