Oracle (NYSE:ORCL) Trading Down 4.6% – Should You Sell?

Oracle Corporation (NYSE:ORCL)’s stock price dropped 4.6% during trading on Thursday . The stock traded as low as $119.44 and last traded at $120.0920. 29,206,781 shares were traded during mid-day trading, an increase of 0% from the average session volume of 29,090,865 shares. The stock had previously closed at $125.84.

Key Stories Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Some analysts still see Oracle as a buy, arguing the recent decline has made the stock attractive relative to its AI infrastructure opportunities and backlog growth. Oracle stock is still a buy: Analyst outlines his bull case
• Positive Sentiment: Oracle is still being cited as a key player in healthcare IT and AI-driven digital transformation, which supports the long-term growth narrative. Global Healthcare IT Market to Reach $961.26 Billion by 2030, Driven by AI, EHR and Telehealth Adoption
• Positive Sentiment: Several recent articles argue Oracle’s steep drop may have created a buy-the-dip opportunity, with some suggesting meaningful recovery potential if AI demand and backlog translate into profits. Prediction: Oracle Stock Could Reach a New High by 2027
• Neutral Sentiment: Oracle recently reported stronger-than-expected quarterly results, with revenue and EPS beating estimates and management issuing forward guidance that was in line with continued growth. Oracle stock and earnings background
• Negative Sentiment: Investors are increasingly worried that Oracle’s aggressive AI buildout is becoming too expensive, with reports highlighting higher data center costs, potential $7 billion in power-related obligations, and exposure to OpenAI-related risks. Oracle’s (ORCL) Massive Wisconsin Data Center Runs Into a $7 Billion Power Problem
• Negative Sentiment: Analysts and commentators say Oracle’s free cash flow could remain under pressure as AI capital spending rises, adding to concerns about debt and valuation after the stock’s steep decline. Analysis-AI investment boom puts Big Tech’s free cash flow under pressure

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on ORCL shares. Piper Sandler upped their target price on Oracle from $210.00 to $225.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th. Arete Research set a $255.00 target price on Oracle and gave the company a “buy” rating in a report on Thursday, May 7th. Cantor Fitzgerald reissued an “overweight” rating and set a $284.00 price target on shares of Oracle in a research report on Thursday, June 11th. BTIG Research restated a “buy” rating and issued a $400.00 price target on shares of Oracle in a report on Friday, June 5th. Finally, Bank of America increased their price objective on shares of Oracle from $200.00 to $240.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $265.03.

Oracle Stock Down 4.6%

The firm has a 50 day moving average price of $173.38 and a two-hundred day moving average price of $167.78. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 3.21. The company has a market capitalization of $345.92 billion, a price-to-earnings ratio of 20.60, a P/E/G ratio of 0.80 and a beta of 1.72.

Oracle (NYSE:ORCL) last announced its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.96 by $0.15. The business had revenue of $19.18 billion for the quarter, compared to analyst estimates of $19.10 billion. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The company’s revenue for the quarter was up 20.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.70 earnings per share. 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, sell-side analysts expect that Oracle Corporation will post 6.47 earnings per share for the current year.

Oracle Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, July 10th. Oracle’s dividend payout ratio is presently 34.31%.

Insider Activity at Oracle

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction that occurred 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 directly owned 400,000 shares in the company, valued at approximately $63,664,000. This represents a 50.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 40.90% of the company’s stock.

Institutional Trading of Oracle

Institutional investors have recently added to or reduced their stakes in the stock. Trust Asset Management LLC boosted its stake in Oracle by 3.7% during the 2nd quarter. Trust Asset Management LLC now owns 18,516 shares of the enterprise software provider’s stock valued at $2,714,000 after acquiring an additional 667 shares during the last quarter. Whitener Capital Management Inc. grew its holdings in Oracle by 2.4% during the 2nd quarter. Whitener Capital Management Inc. now owns 5,149 shares of the enterprise software provider’s stock worth $755,000 after acquiring an additional 119 shares in the last quarter. JFS Wealth Advisors LLC increased its position in shares of Oracle by 5.6% in the 2nd quarter. JFS Wealth Advisors LLC now owns 2,393 shares of the enterprise software provider’s stock worth $351,000 after purchasing an additional 126 shares during the last quarter. Tema ETFs LLC increased its position in shares of Oracle by 10.7% in the 2nd quarter. Tema ETFs LLC now owns 34,424 shares of the enterprise software provider’s stock worth $5,045,000 after purchasing an additional 3,335 shares during the last quarter. Finally, West Branch Capital LLC raised its stake in shares of Oracle by 0.8% in the 2nd quarter. West Branch Capital LLC now owns 43,013 shares of the enterprise software provider’s stock valued at $6,304,000 after purchasing an additional 360 shares in the last quarter. 42.44% of the stock is 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.