Oracle (NYSE:ORCL) Shares Down 6.2% – Here’s What Happened

Shares of Oracle Corporation (NYSE:ORCL) traded down 6.2% on Thursday . The stock traded as low as $123.66 and last traded at $124.27. Approximately 54,237,413 shares changed hands during trading, an increase of 87% from the average daily volume of 29,017,879 shares. The stock had previously closed at $132.49.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s cloud and AI business is still showing strong traction, with its multicloud AI database posting rapid growth and helping support the long-term growth story.
• Positive Sentiment: Oracle reportedly leads the race for a sensitive Japanese government cloud contract, which could add credibility and revenue if it wins the deal. Oracle leads race to supply Japan with top-secret cloud services
• Positive Sentiment: Some analysts remain constructive, arguing the selloff has made Oracle look oversold and that the stock could rebound materially if AI demand keeps accelerating.
• Neutral Sentiment: Oracle’s stock has become a major topic for traders and investors, with new bearish leveraged ETFs launched against it, highlighting elevated sentiment and volatility.
• Negative Sentiment: Investors are worried that Oracle’s heavy AI spending is burning cash faster than expected and could weaken the company’s financial flexibility.
• Negative Sentiment: S&P’s move to keep Oracle just one step above junk territory raised fresh concerns about leverage and credit risk.
• Negative Sentiment: The shares have been under sustained pressure, hitting fresh lows as the market questions whether the AI buildout will generate enough near-term profit to justify the spending.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Evercore reaffirmed an “outperform” rating and set a $245.00 price target on shares of Oracle in a research report on Monday, June 8th. Scotiabank restated an “overweight” rating on shares of Oracle in a report on Thursday, June 11th. Mizuho set a $320.00 price target on Oracle in a research report on Wednesday, June 3rd. Piper Sandler upped their price target on Oracle from $210.00 to $225.00 and gave the stock an “overweight” rating in a research note on Thursday, June 11th. Finally, Wedbush cut their price objective on Oracle from $275.00 to $240.00 and set an “outperform” rating on the stock in a report on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $268.27.

Oracle Stock Performance

The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 3.21. The firm has a market cap of $357.96 billion, a PE ratio of 21.32, a P/E/G ratio of 0.80 and a beta of 1.72. The stock’s 50 day moving average price is $180.09 and its 200 day moving average price is $170.28.

Oracle (NYSE:ORCL) last announced its quarterly earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, topping 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 firm had revenue of $19.18 billion during the quarter, compared to analysts’ expectations of $19.10 billion. During the same period in the prior year, the company earned $1.70 EPS. The firm’s 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, equities analysts forecast that Oracle Corporation will post 6.47 earnings per share for the current fiscal year.

Oracle Dividend Announcement

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

Insider Buying and Selling at Oracle

In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of the stock in a transaction dated 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 sale, the insider owned 400,000 shares in the company, valued at approximately $63,664,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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

Several hedge funds and other institutional investors have recently bought and sold shares of ORCL. Brighton Jones LLC raised its stake in shares of Oracle by 189.3% during the fourth quarter. Brighton Jones LLC now owns 153,580 shares of the enterprise software provider’s stock valued at $25,593,000 after purchasing an additional 100,494 shares during the period. Revolve Wealth Partners LLC lifted its position in shares of Oracle by 8.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 5,418 shares of the enterprise software provider’s stock worth $903,000 after purchasing an additional 404 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in shares of Oracle by 21.5% in the second quarter. Sivia Capital Partners LLC now owns 4,348 shares of the enterprise software provider’s stock valued at $951,000 after purchasing an additional 768 shares during the period. United Bank boosted its stake in shares of Oracle by 6.8% in the second quarter. United Bank now owns 15,038 shares of the enterprise software provider’s stock valued at $3,288,000 after purchasing an additional 963 shares during the period. Finally, Schnieders Capital Management LLC. grew its holdings in Oracle by 19.2% during the 2nd quarter. Schnieders Capital Management LLC. now owns 52,856 shares of the enterprise software provider’s stock valued at $11,556,000 after purchasing an additional 8,530 shares in the last quarter. 42.44% of the stock is owned by institutional investors and hedge funds.

Oracle Company Profile

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.