Oracle (NYSE:ORCL) Shares Down 4% – Here’s What Happened

Shares of Oracle Corporation (NYSE:ORCL) traded down 4% during trading on Monday . The company traded as low as $120.03 and last traded at $121.38. 36,300,666 shares changed hands during trading, an increase of 25% from the average daily volume of 29,155,357 shares. The stock had previously closed at $126.41.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Negative Sentiment: Wisconsin regulators upheld rules that could force Oracle to provide more than $7 billion in financial guarantees for a planned data center, raising concerns about higher upfront costs and funding risk for its AI buildout. Oracle could face $7bn collateral bill for Wisconsin data centre
• Negative Sentiment: Investors are worried that Oracle’s heavy AI infrastructure spending, rising debt, and exposure to OpenAI could squeeze free cash flow and increase credit risk. Oracle Faces Pressure: Data Center Costs and OpenAI Exposure Weigh on Stock
• Negative Sentiment: S&P’s downgrade and reports that Oracle’s credit risk has climbed to an 18-year high have fueled fears that the company may be stretching its balance sheet too far to fund AI expansion. Oracle Is One Step From Junk—Can It Afford the AI Boom?
• Neutral Sentiment: Some analysts remain bullish, pointing to Oracle’s massive backlog and long-term cloud demand as reasons the selloff may be overdone and the stock could eventually rebound. Oracle stock is still a buy: Analyst outlines his bull case
• Neutral Sentiment: Technical indicators show the shares are deeply oversold, which could support a rebound if investor worries about financing and execution ease. Oracle Corp. (ORCL) Price Forecast: Can Oversold Conditions Fuel a Powerful Rebound?

Analysts Set New Price Targets

ORCL has been the topic of a number of research reports. Wolfe Research reaffirmed an “outperform” rating and set a $225.00 target price on shares of Oracle in a research report on Thursday, June 11th. Bank of America increased their price target on shares of Oracle from $200.00 to $240.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Royal Bank Of Canada restated a “sector perform” rating and set a $190.00 price objective on shares of Oracle in a report on Thursday, June 11th. Guggenheim reaffirmed a “buy” rating and set a $400.00 price objective on shares of Oracle in a research report on Thursday, June 11th. Finally, Piper Sandler increased their target price on shares of Oracle from $210.00 to $225.00 and gave the company an “overweight” rating in a research note on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Oracle presently has a consensus rating of “Moderate Buy” and an average target price of $265.03.

Oracle Trading Down 1.5%

The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12. The stock has a market cap of $360.32 billion, a P/E ratio of 21.44, a PEG ratio of 0.76 and a beta of 1.72. The business’s 50 day simple moving average is $174.66 and its 200 day simple moving average is $168.27.

Oracle (NYSE:ORCL) last announced its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating the consensus estimate of $1.96 by $0.15. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The business had revenue of $19.18 billion for the quarter, compared to analyst estimates of $19.10 billion. During the same quarter in the previous year, the firm earned $1.70 EPS. Oracle’s quarterly revenue 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, analysts expect that Oracle Corporation will post 6.47 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 1.6%. Oracle’s dividend payout ratio is presently 34.31%.

Insider Activity

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle 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 directly owned 400,000 shares of the company’s stock, valued at $63,664,000. This trade represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 institutional investors have recently modified their holdings of ORCL. HFM Investment Advisors LLC raised its position in Oracle by 290.9% in the 4th quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock valued at $25,000 after purchasing an additional 96 shares during the last quarter. Basepoint Wealth LLC acquired a new stake in shares of Oracle in the fourth quarter valued at $26,000. FSA Wealth Management LLC bought a new position in shares of Oracle in the third quarter valued at about $28,000. Osbon Capital Management LLC bought a new position in shares of Oracle in the fourth quarter valued at about $28,000. Finally, Joseph Group Capital Management acquired a new position in Oracle during the 4th quarter worth about $29,000. Institutional investors 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.