Oracle (NYSE:ORCL) Trading Up 9.6% – Still a Buy?

Oracle Corporation (NYSE:ORCL) was up 9.6% during trading on Monday . The stock traded as high as $143.07 and last traded at $142.3340. Approximately 49,153,547 shares changed hands during mid-day trading, an increase of 66% from the average daily volume of 29,550,848 shares. The stock had previously closed at $129.87.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle expanded its partnership with Alphabet’s Google Cloud, including integration of Google’s Gemini AI models into Oracle software suites. The announcement strengthened expectations that Oracle can benefit from multicloud adoption and rising enterprise AI demand. What Is Going on With Oracle Stock on Monday?
• Positive Sentiment: A reported 10-year, $7 billion U.S. Department of Defense contract provides long-term revenue visibility and supports the bullish case for Oracle’s cloud infrastructure investments. Oracle Inks 10-Year, $7 Billion Contract With DoD
• Positive Sentiment: Recent results showed 93% growth in cloud infrastructure revenue and remaining performance obligations of approximately $638 billion. Bullish analysts argue that contracted demand, Oracle’s database franchise and multicloud opportunities could support substantial upside, with some published targets reaching $200 or more. Oracle Stock Opinions on Earnings and AI Capex
• Neutral Sentiment: Oracle benefited from a broader risk-on move in AI-cloud stocks, alongside easing geopolitical concerns. Such sector-wide rallies may improve sentiment but do not necessarily indicate company-specific fundamentals. AI Cloud Stocks Rally
• Negative Sentiment: Oracle plans up to $70 billion in fiscal 2027 capital expenditures, while reported free cash flow was negative $23.7 billion. Investors remain concerned that funding AI infrastructure will require additional borrowing or equity issuance, particularly given Oracle’s high debt-to-equity ratio. Down 48%, Is Oracle Stock a Buy Right Now?
• Negative Sentiment: Investor Steve Eisman warned that problems at OpenAI or Anthropic could trigger a sustained AI selloff, putting Oracle’s large backlog and aggressive AI investment strategy under scrutiny. Recent insider activity also shows selling without reported purchases. AI Selloff Warning

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on ORCL shares. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $190.00 target price on shares of Oracle in a research note on Thursday, June 11th. DA Davidson raised their price objective on shares of Oracle from $200.00 to $225.00 and gave the stock a “buy” rating in a report on Thursday, June 11th. TD Cowen lifted their price objective on Oracle from $250.00 to $300.00 and gave the company a “buy” rating in a research report on Monday, June 8th. Mizuho set a $320.00 target price on Oracle in a report on Wednesday, June 3rd. Finally, Weiss Ratings lowered Oracle from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, July 20th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $265.03.

Oracle Stock Performance

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 $164.13. The company has a market capitalization of $409.99 billion, a PE ratio of 24.41, a PEG ratio of 0.82 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 for the quarter, beating analysts’ consensus estimates of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The business had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter last year, the firm earned $1.70 earnings per share. The business’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. On average, research analysts anticipate that Oracle Corporation will post 6.47 earnings per share for the current year.

Oracle Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were paid a dividend of $0.50 per share. The ex-dividend date was Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a yield of 1.4%. Oracle’s payout ratio is presently 34.31%.

Insider Buying and Selling

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of the business’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 sale, the insider directly owned 400,000 shares of the company’s stock, valued at approximately $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, 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.

Hedge Funds Weigh In On Oracle

A number of hedge funds have recently bought and sold shares of ORCL. Trust Asset Management LLC increased its position in shares of Oracle by 3.7% during the second quarter. Trust Asset Management LLC now owns 18,516 shares of the enterprise software provider’s stock valued at $2,714,000 after acquiring an additional 667 shares in the last quarter. Whitener Capital Management Inc. lifted its position in Oracle by 2.4% in the 2nd quarter. Whitener Capital Management Inc. now owns 5,149 shares of the enterprise software provider’s stock valued at $755,000 after acquiring an additional 119 shares in the last quarter. JFS Wealth Advisors LLC boosted its stake in Oracle by 5.6% during the 2nd quarter. JFS Wealth Advisors LLC now owns 2,393 shares of the enterprise software provider’s stock valued at $351,000 after purchasing an additional 126 shares during the last quarter. Tema ETFs LLC boosted its stake in Oracle by 10.7% during the 2nd quarter. Tema ETFs LLC now owns 34,424 shares of the enterprise software provider’s stock valued at $5,045,000 after purchasing an additional 3,335 shares during the last quarter. Finally, West Branch Capital LLC increased its holdings in shares of Oracle by 0.8% in the 2nd quarter. West Branch Capital LLC now owns 43,013 shares of the enterprise software provider’s stock worth $6,304,000 after purchasing an additional 360 shares in the last quarter. 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.