Royal Bank Of Canada Has Lowered Expectations for Oracle (NYSE:ORCL) Stock Price

Oracle (NYSE:ORCL) had its price objective dropped by research analysts at Royal Bank Of Canada from $190.00 to $165.00 in a research note issued to investors on Friday, Benzinga reports. The firm presently has a “sector perform” rating on the enterprise software provider’s stock. Royal Bank Of Canada’s price target would suggest a potential upside of 6.46% from the stock’s current price.

Other research analysts also recently issued research reports about the stock. CLSA started coverage on shares of Oracle in a research report on Monday, July 20th. They set a “hold” rating and a $145.00 target price on the stock. Bank of America upped their target price on shares of Oracle from $200.00 to $240.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. BTIG Research restated a “buy” rating and set a $400.00 price objective on shares of Oracle in a report on Friday, June 5th. Wedbush lowered their price target on shares of Oracle from $275.00 to $240.00 and set an “outperform” rating on the stock in a research report on Thursday, June 11th. Finally, Wolfe Research reiterated an “outperform” rating and issued a $225.00 target price on shares of Oracle in a research note on Thursday, June 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Oracle has an average rating of “Moderate Buy” and an average target price of $255.92.

Oracle Stock Performance

Oracle stock opened at $154.98 on Friday. The business has a 50 day moving average of $140.88 and a 200-day moving average of $160.46. The company has a market capitalization of $446.42 billion, a P/E ratio of 26.78, a P/E/G ratio of 1.20 and a beta of 1.74. Oracle has a 1 year low of $114.50 and a 1 year high of $329.50. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 EPS for the quarter, topping analysts’ consensus estimates of $1.74 by $0.18. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The company had revenue of $19.34 billion for the quarter, compared to analyst estimates of $19.13 billion. During the same quarter in the previous year, the business earned $1.47 earnings per share. Oracle’s revenue was up 29.6% compared to the same quarter last year. 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, equities research analysts predict that Oracle will post 6.51 earnings per share for the current year.

Insider Activity at Oracle

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction on Wednesday, June 24th. The stock was 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 owned 400,000 shares in the company, valued at approximately $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Oracle

Large investors have recently modified their holdings of the company. HFM Investment Advisors LLC grew its position in Oracle by 290.9% during the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock valued at $25,000 after buying an additional 96 shares during the period. Basepoint Wealth LLC bought a new stake in shares of Oracle during the fourth quarter valued at approximately $26,000. FSA Wealth Management LLC purchased a new stake in shares of Oracle during the 3rd quarter worth approximately $28,000. Osbon Capital Management LLC purchased a new stake in shares of Oracle during the 4th quarter valued at about $28,000. Finally, Basso Capital Management L.P. purchased a new stake in Oracle during the 4th quarter valued at $29,000. Institutional investors own 42.44% of the company’s stock.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Results exceeded expectations: Oracle reported adjusted earnings of $1.92 per share versus the $1.74 consensus estimate, while revenue increased 29.6% year over year to approximately $19.35 billion, ahead of forecasts. Oracle jumps after reporting revenue growth fueled by AI cloud demand
• Positive Sentiment: AI cloud growth was the key catalyst: Cloud infrastructure revenue surged 121% to about $7.4 billion, reinforcing the view that Oracle is benefiting from rising demand for AI computing capacity. The company’s remaining performance obligations also reached roughly $664 billion, providing significant future revenue visibility. Oracle shares rise as AI cloud backlog beats estimates
• Positive Sentiment: Guidance improved investor confidence: Oracle forecast fiscal 2027 adjusted EPS of $8.10, above the approximately $7.75 consensus, and issued second-quarter EPS guidance of $1.85-$1.93 versus expectations near $1.82. Analysts including Cantor Fitzgerald and William Blair maintained bullish ratings, while Cantor set a $284 price target.
• Positive Sentiment: AI spending appears to be producing tangible demand: Management maintained its fiscal 2027 capital-expenditure outlook of $90 billion-$95 billion, suggesting confidence that data-center investments will support continued cloud growth.
• Neutral Sentiment: Analyst views remain mixed: BMO Capital Markets lowered its price target from $220 to $195 but retained an “outperform” rating, reflecting continued upside potential alongside valuation and execution concerns.
• Neutral Sentiment: Oracle declared a quarterly dividend of $0.50 per share, payable October 23 to shareholders of record October 9. The dividend provides modest income support but is not the primary driver of the session’s trading.
• Negative Sentiment: Financing and execution risks remain: Oracle’s New Mexico data-center construction has been delayed by a gas-pipeline issue, while heavy AI investment continues to pressure free cash flow. Investors will watch whether the large backlog converts into revenue and cash quickly enough to justify the spending.

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.