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

Oracle Corporation (NYSE:ORCL) dropped 4% during mid-day trading on Monday . The stock traded as low as $120.03 and last traded at $121.38. 36,300,666 shares traded hands during trading, an increase of 25% from the average session 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:

• Neutral Sentiment: Oracle continues to win attention for its AI and cloud buildout, including a new partnership with IMSA Labs to launch a cloud and AI studio, which supports its long-term growth narrative. Oracle (ORCL) Partners With IMSA Labs To Launch Cloud And AI Studio
• Neutral Sentiment: Some articles argue the stock may already reflect much of the bad news, pointing to Oracle’s large $638 billion backlog and asking whether the selloff has gone too far. Oracle Crashed 65% From Its Peak. I Just Bought It Anyway.
• Neutral Sentiment: Oracle also received mixed analyst and media attention around its AI infrastructure plans, with some noting the company’s cloud capacity expansion and others questioning the sustainability of its spending. Oracle stock falls 3% to 52-week low: what’s ailing the company?
• Negative Sentiment: Oracle stock is under pressure after CLSA initiated coverage with a Hold rating and warned the company could need up to $500 billion to fund its AI cloud expansion through 2030, raising concerns that internal cash generation may cover only a fraction of that amount. Oracle stock falls 3% to 52-week low: what’s ailing the company?
• Negative Sentiment: Investors are also reacting to Oracle’s recent credit downgrade toward junk territory and broader fears that the company’s debt-funded AI strategy could create execution and balance-sheet risks. Oracle Just Hit a Fresh 52-Week Low and Had Its Credit Cut Toward Junk. Has the AI-Capex Panic Overshot?

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ORCL. Moffett Nathanson set a $325.00 target price on shares of Oracle in a research report on Thursday, June 11th. Arete Research set a $255.00 price target on shares of Oracle and gave the company a “buy” rating in a report on Thursday, May 7th. Citigroup restated a “market outperform” rating on shares of Oracle in a research report on Thursday, June 11th. BMO Capital Markets upped their price objective on Oracle from $200.00 to $220.00 and gave the stock an “outperform” rating in a report on Thursday, June 11th. Finally, TD Cowen increased their price objective on Oracle from $250.00 to $300.00 and gave the company a “buy” rating in a research report on Monday, June 8th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Oracle currently has a consensus rating of “Moderate Buy” and a consensus price target of $265.03.

Oracle Stock Down 4.0%

The firm’s 50 day moving average is $177.30 and its two-hundred day moving average is $169.28. The firm has a market cap of $349.63 billion, a P/E ratio of 20.82, a price-to-earnings-growth ratio of 0.79 and a beta of 1.72. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 3.21.

Oracle (NYSE:ORCL) last released its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, beating analysts’ consensus estimates of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The business had revenue of $19.18 billion during the quarter, compared to analysts’ expectations of $19.10 billion. During the same quarter in the prior year, the company earned $1.70 EPS. The firm’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. As a group, research analysts anticipate that Oracle Corporation will post 6.47 EPS for the current fiscal year.

Oracle Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be issued a dividend of $0.50 per share. The ex-dividend date is Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.6%. Oracle’s dividend payout ratio (DPR) is presently 34.31%.

Insider Buying and Selling at Oracle

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of the firm’s stock in a transaction that occurred 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 transaction, the insider directly owned 400,000 shares in the company, valued at $63,664,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Oracle

Institutional investors and hedge funds have recently modified their holdings of the stock. DDD Partners LLC purchased a new position in Oracle in the 4th quarter valued at about $1,677,000. New Mexico Educational Retirement Board grew its position in shares of Oracle by 4.2% in the 4th quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider’s stock worth $14,928,000 after acquiring an additional 3,100 shares in the last quarter. Planning Center Inc. lifted its stake in Oracle by 142.2% during the fourth quarter. Planning Center Inc. now owns 6,376 shares of the enterprise software provider’s stock worth $1,243,000 after purchasing an additional 3,743 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its stake in Oracle by 13.0% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 917,304 shares of the enterprise software provider’s stock valued at $178,001,000 after purchasing an additional 105,368 shares during the last quarter. Finally, U.S. Capital Wealth Advisors LLC increased its stake in Oracle by 15.4% during the fourth quarter. U.S. Capital Wealth Advisors LLC now owns 42,616 shares of the enterprise software provider’s stock valued at $8,306,000 after purchasing an additional 5,692 shares during the last quarter. 42.44% of the stock is currently owned by institutional investors and hedge funds.

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.