Oracle (NYSE:ORCL) Trading Down 1.1% – What’s Next?

Oracle Corporation (NYSE:ORCL)’s stock price was down 1.1% on Tuesday . The company traded as low as $224.60 and last traded at $244.7960. Approximately 48,008,658 shares changed hands during mid-day trading, an increase of 142% from the average daily volume of 19,874,676 shares. The stock had previously closed at $247.4540.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: UBS raised its price target on Oracle to $285 from $250 and kept a buy rating, saying AI momentum remains strong and could support further upside. Benzinga article
• Positive Sentiment: Oracle continues to be viewed as a major AI infrastructure winner, with analysts and market commentary highlighting cloud demand, multi-megawatt data center expansion, and its growing role in AI workloads. TheStreet article
• Positive Sentiment: Arm said Oracle is among the customers using its data center CPU chips, reinforcing Oracle’s position in the AI cloud ecosystem. Reuters article
• Neutral Sentiment: Oracle shares are under pressure ahead of earnings, with investors focusing on whether AI spending will translate into enough growth and margin improvement to justify recent gains. Yahoo Finance article
• Neutral Sentiment: There is also elevated market caution around earnings expectations and options activity, with unusually heavy put trading suggesting some traders are hedging or betting on a near-term pullback. Barchart article
• Negative Sentiment: Oracle has been slipping on concerns that the company’s aggressive AI infrastructure spending could pressure near-term profitability before the June 10 report. Invezz article

Analyst Ratings Changes

A number of equities research analysts recently commented on ORCL shares. Arete Research set a $255.00 target price on shares of Oracle and gave the company a “buy” rating in a research report on Thursday, May 7th. JPMorgan Chase & Co. raised shares of Oracle from a “neutral” rating to an “overweight” rating and cut their price target for the stock from $230.00 to $210.00 in a report on Wednesday, March 11th. Melius Research set a $160.00 price target on Oracle in a research report on Monday, February 9th. Wedbush increased their price objective on Oracle from $225.00 to $275.00 and gave the company an “outperform” rating in a report on Wednesday, May 13th. Finally, Piper Sandler lowered their price objective on Oracle from $240.00 to $210.00 and set an “overweight” rating for the company in a research report on Wednesday, March 11th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $263.62.

Oracle Trading Down 5.7%

The stock has a 50-day moving average of $176.08 and a 200 day moving average of $178.21. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 3.66. The stock has a market cap of $663.02 billion, a PE ratio of 41.39, a price-to-earnings-growth ratio of 2.30 and a beta of 1.65.

Oracle (NYSE:ORCL) last posted its quarterly earnings results on Tuesday, March 10th. The enterprise software provider reported $1.79 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.71 by $0.08. The company had revenue of $17.19 billion during the quarter, compared to analyst estimates of $16.91 billion. Oracle had a net margin of 25.30% and a return on equity of 62.70%. Oracle’s revenue for the quarter was up 21.7% compared to the same quarter last year. During the same period last year, the firm posted $1.47 EPS. Oracle has set its Q4 2026 guidance at 1.960-2.000 EPS. As a group, sell-side analysts anticipate that Oracle Corporation will post 6.08 earnings per share for the current year.

Oracle Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, April 24th. Investors of record on Thursday, April 9th were given a dividend of $0.50 per share. The ex-dividend date was Thursday, April 9th. This represents a $2.00 dividend on an annualized basis and a yield of 0.9%. Oracle’s payout ratio is currently 35.91%.

Insider Buying and Selling

In other Oracle news, EVP Stuart Levey sold 15,000 shares of the company’s stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $176.19, for a total value of $2,642,850.00. Following the sale, the executive vice president directly owned 3,429 shares of the company’s stock, valued at approximately $604,155.51. This represents a 81.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, 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.

Hedge Funds Weigh In On Oracle

Institutional investors have recently modified their holdings of the stock. HFM Investment Advisors LLC lifted its holdings in Oracle by 290.9% in the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock valued at $25,000 after acquiring an additional 96 shares during the period. Basepoint Wealth LLC acquired a new stake in shares of Oracle during the 4th quarter worth approximately $26,000. FSA Wealth Management LLC purchased a new position in shares of Oracle during the 3rd quarter valued at approximately $28,000. Osbon Capital Management LLC purchased a new position in shares of Oracle during the 4th quarter valued at approximately $28,000. Finally, Joseph Group Capital Management acquired a new position in shares of Oracle in the 4th quarter valued at $29,000. Hedge funds and other institutional investors own 42.44% of the company’s stock.

About Oracle

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.