BMO Capital Markets Cuts Oracle (NYSE:ORCL) Price Target to $195.00

Oracle (NYSE:ORCL) had its price objective cut by BMO Capital Markets from $220.00 to $195.00 in a research note published on Friday morning, Marketbeat reports. They currently have an outperform rating on the enterprise software provider’s stock.

Several other equities research analysts have also recently issued reports on ORCL. BTIG Research restated a “buy” rating and set a $400.00 price objective on shares of Oracle in a report on Friday, June 5th. Mizuho set a $320.00 target price on Oracle in a research report on Wednesday, June 3rd. DA Davidson increased their target price on Oracle from $200.00 to $225.00 and gave the stock a “buy” rating in a research report on Thursday, June 11th. Cantor Fitzgerald reissued an “overweight” rating and issued a $284.00 price target on shares of Oracle in a research note on Friday. Finally, Scotiabank lowered their price target on Oracle from $241.00 to $215.00 and set a “sector outperform” rating for the company in a report on Wednesday, September 9th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Oracle has a consensus rating of “Moderate Buy” and an average target price of $256.05.

Oracle Stock Performance

Shares of ORCL opened at $150.13 on Friday. Oracle has a 1 year low of $114.50 and a 1 year high of $329.50. The company’s 50 day simple moving average is $141.08 and its 200 day simple moving average is $160.52. The company has a market capitalization of $432.45 billion, a price-to-earnings ratio of 23.53, 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.

Oracle (NYSE:ORCL) last released 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. The firm had revenue of $19.34 billion during the quarter, compared to analysts’ expectations of $19.13 billion. Oracle had a net margin of 26.36% and a return on equity of 47.43%. Oracle’s revenue for the quarter was up 29.6% on a year-over-year basis. During the same period in the previous year, the company 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. On average, sell-side analysts predict that Oracle will post 6.6 EPS for the current year.

Oracle Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, October 9th. Oracle’s dividend payout ratio (DPR) is currently 31.35%.

Insider Buying and Selling at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction on 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 transaction, the insider owned 400,000 shares in the company, valued at approximately $63,664,000. The trade was a 50.00% decrease in their position. 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. Insiders own 40.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. FSA Wealth Management LLC purchased a new stake in shares of Oracle in the third quarter worth about $28,000. Mpwm Advisory Solutions LLC raised its holdings in shares of Oracle by 76.9% during the 3rd quarter. Mpwm Advisory Solutions LLC now owns 115 shares of the enterprise software provider’s stock valued at $32,000 after buying an additional 50 shares during the period. Turning Point Benefit Group Inc. purchased a new stake in shares of Oracle during the 3rd quarter valued at about $35,000. HFM Investment Advisors LLC lifted its position in Oracle by 290.9% during the 4th quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock worth $25,000 after acquiring an additional 96 shares in the last quarter. Finally, Basepoint Wealth LLC acquired a new position in Oracle during the 4th quarter worth approximately $26,000. 42.44% of the stock is owned by hedge funds and other institutional investors.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle reported adjusted EPS of $1.92 versus the $1.74 consensus estimate, while revenue rose 29.6% year over year to approximately $19.35 billion, beating expectations. Surging cloud revenue boosted Oracle’s quarterly results
• Positive Sentiment: Cloud infrastructure revenue surged 121% to about $7.4 billion, and remaining performance obligations reached a record $664 billion. AI infrastructure contracts reportedly exceed $30 billion, providing substantial revenue visibility. Oracle Q1 Earnings Beat Estimates, Cloud Growth Accelerates
• Positive Sentiment: Management raised its fiscal 2027 outlook to at least $90 billion in revenue and $8.10 in adjusted EPS. Analysts also noted that expiring AI contracts are renewing at prices roughly 20% higher, suggesting durable demand for Oracle’s computing capacity. Oracle Says Its Expiring AI Contracts Are Renewing 20% Higher
• Neutral Sentiment: Analyst reactions remain broadly constructive, with several firms reiterating Buy or Outperform ratings, although some price targets were reduced to reflect valuation and financing risks.
• Negative Sentiment: Oracle is maintaining capital expenditures of roughly $90 billion to $95 billion for fiscal 2027. Free cash flow remained negative, and investors are concerned that debt and equity financing could delay the payoff from its AI investments. Oracle Nearly Erases 7% Jump Despite $664 Billion AI Backlog
• Negative Sentiment: Execution risks persist: a New Mexico data-center project has faced delays, and Oracle’s profitability and efficiency have not yet fully reflected the scale of its AI demand.

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.