Oracle (NYSE:ORCL) Stock Falls 9.1% – Here’s Why

Oracle Corporation (NYSE:ORCL)’s stock price fell 9.1% on Monday. The stock traded as low as $118.43 and last traded at $118.7930. 58,001,359 shares changed hands during mid-day trading, an increase of 94% from the average session volume of 29,873,809 shares. The stock had previously closed at $130.67.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: UBS maintained its Buy rating and $250 price target, arguing that concerns about AI demand and supply are overstated. Oracle has also retained ambitious growth targets, including a $90 billion fiscal 2027 revenue goal. Oracle gets UBS backing as broker pushes back on AI demand concerns
• Neutral Sentiment: Oracle and Credo are working with the Open Compute Project community to standardize optical-transceiver telemetry, a technical collaboration that could support data-center operations but has no disclosed near-term financial impact. Credo and Oracle Advance Optical Transceiver Telemetry Standardization
• Negative Sentiment: Oracle reportedly scrapped a proposed five-year, roughly $7 billion chip-leasing agreement with Tencent after U.S. government pressure over Chinese access to advanced AI chips. The canceled deal removes a potential source of business and underscores regulatory limits on serving Chinese AI customers. Oracle abandons $7 billion Tencent AI deal under Trump pressure
• Negative Sentiment: Investors are also digesting Oracle’s completed $20 billion financing package: $10 billion from selling about 86.2 million shares at $116 each and $10 billion in notes with coupons ranging from 7% to 8.65%. The equity issuance dilutes shareholders, while borrowing costs heighten scrutiny of whether AI infrastructure spending will generate adequate returns. Oracle Completes $10 Billion Debt Offering Across Five Maturities

Wall Street Analysts Forecast Growth

ORCL has been the subject of several analyst reports. Citizens Jmp restated a “market outperform” rating and set a $285.00 target price on shares of Oracle in a research report on Friday, October 2nd. Cantor Fitzgerald reissued an “overweight” rating and set a $284.00 price target on shares of Oracle in a research report on Thursday, October 22nd. Melius Research set a $170.00 price target on shares of Oracle in a report on Thursday, October 29th. KeyCorp set a $285.00 price objective on shares of Oracle in a research report on Friday, September 11th. Finally, JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Oracle in a research note on Thursday, September 10th. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $249.27.

Oracle Price Performance

The stock has a market cap of $374.39 billion, a P/E ratio of 18.56, a PEG ratio of 0.99 and a beta of 1.79. The company has a 50 day simple moving average of $140.51 and a 200 day simple moving average of $156.10. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 1.89.

Oracle (NYSE:ORCL) last posted its quarterly earnings data on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.74 by $0.18. Oracle had a net margin of 26.36% and a return on equity of 48.85%. The company had revenue of $19.34 billion for the quarter, compared to the consensus estimate of $19.13 billion. During the same period last year, the company earned $1.47 earnings per share. The firm’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. Sell-side analysts forecast that Oracle Corporation will post 6.72 earnings per share for the current fiscal year.

Oracle Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 9th were paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date was Friday, October 9th. Oracle’s dividend payout ratio (DPR) is currently 31.35%.

Insiders Place Their Bets

In related news, EVP Maria Smith sold 2,631 shares of the firm’s stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total value of $399,122.70. Following the completion of the transaction, the executive vice president directly owned 64,357 shares of the company’s stock, valued at approximately $9,762,956.90. This trade represents a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Stephen H. Rusckowski bought 25,000 shares of the stock in a transaction that occurred on Tuesday, September 29th. The shares were purchased at an average price of $139.35 per share, for a total transaction of $3,483,750.00. Following the completion of the acquisition, the director owned 25,390 shares of the company’s stock, valued at $3,538,096.50. The trade was a 6,410.26% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold 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 insiders.

Hedge Funds Weigh In On Oracle

A number of hedge funds and other institutional investors have recently bought and sold shares of ORCL. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Oracle in the second quarter valued at about $625,454,000. Edmond DE Rothschild Holding S.A. lifted its stake in shares of Oracle by 8.7% during the 2nd quarter. Edmond DE Rothschild Holding S.A. now owns 79,008 shares of the enterprise software provider’s stock worth $11,579,000 after buying an additional 6,296 shares during the last quarter. Generate Investment Management Ltd boosted its holdings in shares of Oracle by 178.4% during the 3rd quarter. Generate Investment Management Ltd now owns 407,314 shares of the enterprise software provider’s stock worth $55,924,000 after buying an additional 261,019 shares during the period. Sawyer & Company Inc bought a new stake in shares of Oracle during the 3rd quarter worth about $8,243,000. Finally, Verus Wealth Management LLC acquired a new position in Oracle in the 3rd quarter valued at about $1,365,000. Institutional investors own 42.44% of the company’s stock.

Oracle Company Profile

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.