Oracle (NYSE:ORCL) Shares Down 2.9% – Here’s What Happened

Oracle Corporation (NYSE:ORCL) dropped 2.9% during mid-day trading on Thursday. The stock traded as low as $122.76 and last traded at $125.3480. Approximately 34,801,144 shares were traded during trading, an increase of 18% from the average session volume of 29,473,518 shares. The stock had previously closed at $129.13.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle committed $1 billion over four years to its partner ecosystem, offering incentives, expertise and resources to expand AI-driven modernization projects. The investment could help generate additional cloud demand and broaden Oracle’s sales reach. Oracle Announces $1 Billion Investment to Accelerate Partner Growth and AI-Driven Modernization for Customers
• Positive Sentiment: TikTok’s U.S. operation is seeking multiple gigawatts of computing capacity and said Oracle Cloud Infrastructure will remain its primary U.S. provider. A large, continuing commitment from TikTok would support Oracle’s AI infrastructure utilization and cloud revenue outlook. TikTok U.S. hunts for multiple gigawatts of computing capacity
• Positive Sentiment: Analysts continue to identify significant upside if Oracle converts its roughly $664 billion backlog into revenue and earnings. Cantor Fitzgerald maintained an Overweight rating with a $284 target, while Erste Group modestly raised its FY2028 EPS estimate to $9.32. Could Oracle Actually Achieve 120% Upside?
• Neutral Sentiment: Oracle expanded its Marketplace with broader use of Universal Credits, new co-selling tools and additional purchasing options. The changes should make it easier for partners to sell through Oracle, although the financial impact will depend on adoption. Oracle Expands Marketplace to Unlock New Partner Growth Opportunities
• Neutral Sentiment: Oracle’s October 28 Investor Day is expected to provide more detail on OCI capacity expansion, applications growth, capital spending and financing. The event could be an important catalyst for the stock.
• Negative Sentiment: Investors remain concerned that Oracle is spending heavily on AI data centers while free cash flow is negative and borrowing costs are elevated. Reports that Oracle’s bond yields are approaching 9% have intensified fears that future AI growth may require expensive debt, equity issuance or customer prepayments. Oracle: Bond Yields Near 9%
• Negative Sentiment: Wedbush analyst Dan Ives described the current AI-related selloff as “SaaS Apocalypse 2.0” and said Oracle is in “the toughest spot,” reflecting market anxiety over valuation, execution and the profitability of its AI infrastructure buildout. Dan Ives Calls AI Sell-Off SaaS Apocalypse 2.0

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Argus restated a “buy” rating and issued a $225.00 price target on shares of Oracle in a report on Monday, September 14th. The Goldman Sachs Group cut their price target on Oracle from $240.00 to $206.00 and set a “buy” rating for the company in a report on Friday. JPMorgan Chase & Co. reiterated a “buy” rating on shares of Oracle in a report on Thursday, September 10th. CLSA assumed coverage on shares of Oracle in a research note on Monday, July 20th. They issued a “hold” rating and a $145.00 target price on the stock. Finally, President Capital lowered their target price on Oracle from $360.00 to $300.00 and set an “overweight” rating for the company in a research note on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Oracle presently has an average rating of “Moderate Buy” and a consensus target price of $248.75.

Oracle Stock Performance

The stock has a 50 day moving average of $143.07 and a 200 day moving average of $158.06. The stock has a market capitalization of $381.31 billion, a P/E ratio of 19.77, a P/E/G ratio of 0.89 and a beta of 1.78. The company has a debt-to-equity ratio of 1.89, a quick ratio of 1.17 and a current ratio of 1.17.

Oracle (NYSE:ORCL) last issued its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.74 by $0.18. The business had revenue of $19.34 billion during the quarter, compared to analyst estimates of $19.13 billion. Oracle had a return on equity of 48.85% and a net margin of 26.36%. The business’s revenue for the quarter was up 29.6% compared to the same quarter last year. During the same period in the prior year, the company posted $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. Equities analysts predict that Oracle Corporation will post 6.73 EPS for the current year.

Oracle Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 9th were paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Friday, October 9th. Oracle’s payout ratio is 31.35%.

Insider Buying and Selling at Oracle

In other news, CEO Michael Sicilia sold 22,562 shares of the business’s stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.59, for a total transaction of $3,420,173.58. Following the transaction, the chief executive officer directly owned 182,929 shares in the company, valued at $27,730,207.11. The trade was a 10.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Rusckowski purchased 25,000 shares of Oracle stock in a transaction on Tuesday, September 29th. The stock was bought at an average cost of $139.35 per share, with a total value of $3,483,750.00. Following the transaction, the director directly owned 25,390 shares of the company’s stock, valued at approximately $3,538,096.50. The trade was a 6,410.26% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have sold a total of 36,075 shares of company stock valued at $5,342,123 in the last 90 days. 38.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Oracle

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Oracle by 0.8% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 14,680,278 shares of the enterprise software provider’s stock valued at $2,151,395,000 after purchasing an additional 123,294 shares during the period. Bank of New York Mellon Corp raised its position in shares of Oracle by 3.0% during the 1st quarter. Bank of New York Mellon Corp now owns 13,251,059 shares of the enterprise software provider’s stock valued at $1,949,363,000 after acquiring an additional 384,984 shares during the last quarter. Amundi increased its holdings in Oracle by 1.5% in the second quarter. Amundi now owns 9,878,184 shares of the enterprise software provider’s stock valued at $1,447,648,000 after purchasing an additional 144,087 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Oracle by 1.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 8,586,492 shares of the enterprise software provider’s stock valued at $1,262,827,000 after buying an additional 147,048 shares in the last quarter. Finally, First Eagle Investment Management LLC lifted its stake in Oracle by 1.0% in the second quarter. First Eagle Investment Management LLC now owns 8,516,878 shares of the enterprise software provider’s stock valued at $1,248,148,000 after buying an additional 81,700 shares in the last quarter. Institutional investors and hedge funds own 42.44% of the company’s stock.

About Oracle

Oracle Corporation (NYSE: ORCL) is a global technology company that develops enterprise software, cloud infrastructure and database technologies. Its products help organizations store, manage, analyze and secure data, while supporting business operations across industries and geographies.

The company’s offerings include Oracle Database, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud-based applications. These applications serve functions such as enterprise resource planning, financial management, human resources, supply-chain management, customer experience and industry-specific operations.