Oracle (NYSE:ORCL) Shares Down 3.3% – Here’s Why

Oracle Corporation (NYSE:ORCL) was down 3.3% on Monday. The company traded as low as $131.58 and last traded at $132.64. 33,589,722 shares were traded during mid-day trading, an increase of 14% from the average daily volume of 29,421,881 shares. The stock had previously closed at $137.10.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle announced an integration with Swift’s blockchain ledger, potentially helping banks connect tokenized-deposit systems to cross-border payment networks. The initiative supports Oracle’s positioning in financial technology and digital payments. Oracle Integration with Swift’s Ledger
• Positive Sentiment: Several investment articles highlight Oracle’s reported $664 billion backlog, strong cloud growth and the long-term opportunity from AI computing demand. Oracle’s recent quarter also exceeded earnings and revenue expectations, supporting the bullish case if the backlog converts into profitable sales. Oracle Reports a $664 Billion Backlog

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $284.00 price objective on shares of Oracle in a report on Friday, September 11th. Jefferies Financial Group cut their target price on Oracle from $320.00 to $290.00 and set a “buy” rating for the company in a research report on Wednesday, September 2nd. Oppenheimer reaffirmed an “outperform” rating on shares of Oracle in a research note on Tuesday, September 8th. Stephens reiterated an “equal weight” rating and issued a $175.00 price target on shares of Oracle in a research report on Friday, September 11th. Finally, Sanford C. Bernstein reiterated an “outperform” rating on shares of Oracle in a research note on Wednesday, September 2nd. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $254.68.

Oracle Trading Down 3.3%

The company has a 50-day simple moving average of $142.91 and a 200-day simple moving average of $160.14. The company has a debt-to-equity ratio of 1.89, a quick ratio of 1.17 and a current ratio of 1.17. The stock has a market cap of $401.07 billion, a P/E ratio of 20.79, a P/E/G ratio of 0.98 and a beta of 1.74.

Oracle (NYSE:ORCL) last announced its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, topping the consensus estimate of $1.74 by $0.18. Oracle had a return on equity of 48.85% and a net margin of 26.36%.The company had revenue of $19.34 billion for the quarter, compared to analysts’ expectations of $19.13 billion. During the same quarter in the prior year, the business earned $1.47 earnings per share. The business’s revenue for the quarter was up 29.6% on a year-over-year basis. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. On average, sell-side analysts forecast that Oracle Corporation will post 6.67 EPS for the current fiscal year.

Oracle Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 9th will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.00 dividend on an annualized basis and a yield of 1.5%. Oracle’s dividend payout ratio is currently 31.35%.

Insider Transactions at Oracle

In related news, EVP Maria Smith sold 2,631 shares of the firm’s stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total value of $399,122.70. Following the completion of the sale, the executive vice president owned 64,357 shares of the company’s stock, valued at $9,762,956.90. This trade represents a 3.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Michael D. Sicilia sold 22,562 shares of the stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.59, for a total value of $3,420,173.58. Following the completion of the transaction, the chief executive officer owned 182,929 shares in the company, valued at $27,730,207.11. The trade was a 10.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 36,075 shares of company stock valued at $5,342,123. Insiders own 40.90% of the company’s stock.

Hedge Funds Weigh In On Oracle

Several large investors have recently made changes to their positions in the company. QRG Capital Management Inc. boosted its holdings in Oracle by 12.9% in the second quarter. QRG Capital Management Inc. now owns 300,056 shares of the enterprise software provider’s stock valued at $43,973,000 after acquiring an additional 34,397 shares during the last quarter. Envestnet Portfolio Solutions Inc. raised its holdings in Oracle by 13.8% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 117,271 shares of the enterprise software provider’s stock worth $17,186,000 after purchasing an additional 14,208 shares during the last quarter. Premier Financial Group acquired a new position in Oracle during the 2nd quarter valued at about $101,000. Security National Bank of Sioux City Iowa IA lifted its position in Oracle by 42.1% during the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 31,833 shares of the enterprise software provider’s stock valued at $4,665,000 after purchasing an additional 9,424 shares during the period. Finally, Bullseye Investment Management LLC bought a new position in shares of Oracle in the 2nd quarter valued at about $1,676,000. Institutional investors and hedge funds own 42.44% of the company’s stock.

About Oracle

Oracle Corporation (NYSE: ORCL) is a global technology company that develops enterprise software, cloud services and related hardware. Its offerings help businesses manage databases, applications, data, infrastructure and other core information-technology operations.

The company is best known for its Oracle Database, along with cloud-based infrastructure and platform services. Oracle also provides enterprise applications for functions such as finance, human resources, supply-chain management, customer experience and industry-specific operations.