Oracle (NYSE:ORCL) Shares Up 1.7% – Should You Buy?

Oracle Corporation (NYSE:ORCL)’s share price traded up 1.7% during mid-day trading on Tuesday . The stock traded as high as $146.34 and last traded at $144.9230. Approximately 13,224,577 shares were traded during mid-day trading, a decline of 54% from the average daily volume of 29,017,359 shares. The stock had previously closed at $142.45.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle benefited from a broader technology-sector rebound, with the stock showing signs of recovery after a steep yearlong decline. Technical traders are watching whether it can clear resistance near its short-term moving averages. What Is Going on With Oracle Stock on Tuesday?
• Positive Sentiment: Several bullish analyses argue that Oracle’s valuation has become more attractive following its major pullback. Supporters see a potential gap between the market value assigned to the company and the long-term value of its cloud and AI infrastructure business. Asymmetry Is The Reason I Will Not Stop Buying Oracle
• Positive Sentiment: Oracle’s latest reported quarter provides fundamental support for the bullish case: revenue grew 20.6% year over year, while earnings and revenue exceeded analyst estimates. Investors also continue to view cloud expansion and AI-related demand as important growth drivers.
• Neutral Sentiment: September 10 is being highlighted as a potentially decisive date for the bullish thesis, likely making the company’s upcoming results, guidance and commentary on AI-cloud demand an important near-term catalyst. Oracle: September 10 Will Make or Break The Bull Case
• Negative Sentiment: Investors remain concerned that aggressive spending on AI infrastructure could pressure Oracle’s free cash flow, particularly if customer projects are delayed. Those concerns help explain why the stock has substantially underperformed despite strong reported growth. What Is Going on With Oracle Stock on Tuesday?
• Negative Sentiment: Oracle’s AI-cloud outlook also carries concentration risk because of its significant dependence on major customers such as OpenAI. Comparisons with Amazon emphasize that Oracle may offer attractive AI infrastructure economics, but has a less diversified business and a heavier balance-sheet burden. Oracle vs. Amazon: Which Is the Better AI Cloud Stock to Own for the Next 5 Years?

Analyst Ratings Changes

ORCL has been the subject of several research reports. Scotiabank reiterated an “overweight” rating on shares of Oracle in a report on Thursday, June 11th. Weiss Ratings lowered Oracle from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, July 20th. TD Cowen boosted their price target on Oracle from $250.00 to $300.00 and gave the stock a “buy” rating in a research report on Monday, June 8th. Bank of America upped their price target on Oracle from $200.00 to $240.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Finally, Guggenheim reissued a “buy” rating on shares of Oracle in a research note on Thursday, July 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Oracle has a consensus rating of “Moderate Buy” and an average price target of $263.97.

Oracle Price Performance

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 fifty day simple moving average of $143.62 and a 200-day simple moving average of $160.53. The stock has a market cap of $417.45 billion, a price-to-earnings ratio of 24.86, a price-to-earnings-growth ratio of 0.92 and a beta of 1.72.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, topping analysts’ consensus estimates 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 return on equity of 58.62% and a net margin of 25.37%.The company’s quarterly revenue was up 20.6% compared to the same quarter last year. During the same period in the previous year, the company 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, equities research analysts expect that Oracle Corporation will post 6.49 EPS for the current year.

Oracle Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were given a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 1.4%. The ex-dividend date was Friday, July 10th. Oracle’s dividend payout ratio (DPR) is currently 34.31%.

Insider Transactions at Oracle

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the company’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 of the company’s stock, valued at approximately $63,664,000. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Oracle

Several large investors have recently added to or reduced their stakes in ORCL. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Oracle in the 2nd quarter valued at approximately $625,454,000. Edmond DE Rothschild Holding S.A. boosted its position in Oracle by 8.7% during the 2nd quarter. Edmond DE Rothschild Holding S.A. now owns 79,008 shares of the enterprise software provider’s stock worth $11,579,000 after acquiring an additional 6,296 shares during the last quarter. New Mexico Educational Retirement Board grew its stake in shares of Oracle by 4.2% during the 4th quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider’s stock worth $14,928,000 after acquiring an additional 3,100 shares in the last quarter. Planning Center Inc. raised its holdings in shares of Oracle by 142.2% in the fourth quarter. Planning Center Inc. now owns 6,376 shares of the enterprise software provider’s stock valued at $1,243,000 after purchasing an additional 3,743 shares during the last quarter. Finally, Valeo Financial Advisors LLC raised its holdings in shares of Oracle by 4.6% in the second quarter. Valeo Financial Advisors LLC now owns 80,686 shares of the enterprise software provider’s stock valued at $11,825,000 after purchasing an additional 3,584 shares during the last quarter. Institutional investors and hedge funds own 42.44% of the company’s stock.

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.