Oracle (NYSE:ORCL) Stock Price Down 3.1% After Analyst Downgrade

Oracle Corporation (NYSE:ORCL)’s share price was down 3.1% on Tuesday after Freedom Broker lowered their price target on the stock from $210.00 to $205.00. Freedom Broker currently has a buy rating on the stock. Oracle traded as low as $140.02 and last traded at $140.37. 31,006,479 shares changed hands during mid-day trading, an increase of 6% from the average session volume of 29,306,924 shares. The stock had previously closed at $144.79.

Several other research analysts have also weighed in on the company. Oppenheimer reiterated an “outperform” rating on shares of Oracle in a research report on Tuesday, September 8th. Wolfe Research restated an “outperform” rating and issued a $225.00 target price on shares of Oracle in a research report on Thursday, June 11th. CLSA initiated coverage on Oracle in a research note on Monday, July 20th. They issued a “hold” rating and a $145.00 price target on the stock. Evercore reiterated an “outperform” rating and set a $245.00 price target on shares of Oracle in a report on Monday, June 8th. Finally, Weiss Ratings downgraded Oracle from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, July 20th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $252.58.

Insider Buying and Selling at Oracle

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle 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 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 sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company’s stock.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: AI demand and backlog remain substantial. Oracle’s fiscal first-quarter results exceeded expectations, with revenue rising about 30%, cloud revenue increasing 62% to approximately $11.6 billion, and remaining performance obligations/backlog reaching roughly $664 billion. This supports the long-term growth case, although investors want to see the backlog convert into cash flow. Oracle Has the Backlog. Wall Street Wants the Cash
• Positive Sentiment: Analysts continue to see recovery potential. Mizuho and other firms remain constructive, while Argus reaffirmed a “buy” rating with a $225 target and Freedom Broker maintained “buy” with a $205 target. These views reflect Oracle’s cloud opportunity and depressed valuation after the stock’s major decline over the past year. Oracle’s AI Fortress Goes Beyond OpenAI
• Positive Sentiment: New products and sustainability initiatives broaden the opportunity. Java 27 adds post-quantum security, AI and performance improvements, while Oracle is targeting carbon-free power for AI data centers by 2035 through a 1.7-gigawatt Texas wind investment. Oracle also won a technology-platform contract with Quorum Health. Oracle Releases Java 27
• Neutral Sentiment: Larry Ellison canceled a planned sale of up to 50 million shares, valued at approximately $7.5 billion. The move removes a potential source of selling pressure and may signal confidence, but it is not a company buyback or new investment. Larry Ellison cancels $7.5 billion sale
• Negative Sentiment: Layoffs are intensifying concerns about Oracle’s strategy. Oracle has begun another job-cutting round while spending aggressively on AI data centers. CFO commentary that employees should not simply be expected to “do more with less” underscores internal change and raises questions about execution and future restructuring costs. Oracle CFO comments after layoffs
• Negative Sentiment: Cash burn and leverage are the central risks. Reports highlight a potential $40 billion financing plan and more than $90 billion of planned AI infrastructure investment. Investors remain unconvinced that current earnings and customer deposits will quickly justify the spending, particularly if interest costs rise or major AI customers reduce commitments. Oracle’s $40 Billion Financing Plan

Hedge Funds Weigh In On Oracle

Several institutional investors have recently bought and sold shares of ORCL. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Oracle in the second quarter worth $625,454,000. Edmond DE Rothschild Holding S.A. raised its stake in shares of Oracle by 8.7% in the second quarter. Edmond DE Rothschild Holding S.A. now owns 79,008 shares of the enterprise software provider’s stock valued at $11,579,000 after acquiring an additional 6,296 shares in the last quarter. New Mexico Educational Retirement Board raised its stake in shares of Oracle by 4.2% in the fourth quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider’s stock valued at $14,928,000 after acquiring an additional 3,100 shares in the last quarter. Valeo Financial Advisors LLC boosted its holdings in 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 period. Finally, Axxcess Wealth Management LLC boosted its holdings in Oracle by 870.0% in the fourth quarter. Axxcess Wealth Management LLC now owns 671,452 shares of the enterprise software provider’s stock valued at $128,012,000 after purchasing an additional 602,230 shares during the period. 42.44% of the stock is owned by institutional investors and hedge funds.

Oracle Price Performance

The stock has a market capitalization of $404.33 billion, a price-to-earnings ratio of 22.00, a PEG ratio of 1.10 and a beta of 1.74. The company has a debt-to-equity ratio of 1.75, a quick ratio of 1.12 and a current ratio of 1.17. The company has a 50 day moving average of $141.09 and a 200 day moving average of $160.51.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, topping the consensus estimate of $1.74 by $0.18. The company had revenue of $19.34 billion for the quarter, compared to the consensus estimate of $19.13 billion. Oracle had a return on equity of 47.43% and a net margin of 26.36%.Oracle’s revenue was up 29.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.47 EPS. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. As a group, equities research analysts anticipate that Oracle Corporation will post 6.6 EPS for the current year.

Oracle Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Friday, October 9th. Oracle’s dividend payout ratio is presently 31.35%.

About Oracle

Oracle Corporation is a global enterprise technology company that develops and provides database software, cloud infrastructure, business applications and related technology services. Its offerings help organizations manage data, run applications, support business operations and build technology environments across on-premises, hybrid and cloud-based settings.

The company’s products include Oracle Database, MySQL, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud applications for enterprise resource planning, financial management, human resources, supply chain management, customer experience and industry-specific operations.