Zacks Investment Research Downgrades Oracle Corporation (ORCL) to Hold
Zacks Investment Research cut shares of Oracle Corporation (NYSE:ORCL) from a buy rating to a hold rating in a report published on Monday morning.
According to Zacks, “Oracle is benefiting from significant momentum in the SaaS and PaaS offerings. This has also helped in improving the company's competitive position against salesforce.com and Workday. We believe the company’s growing cloud market share will continue to drive top-line growth for the foreseeable future. The stock has outperformed the industry on a year-to-date basis driven by these factors. We believe the company’s growing cloud market share will continue to drive top-line growth for the foreseeable future. Moreover, Oracle continues to win new customers in HCM, ERP and CX. Meanwhile, estimates have been stable lately ahead of the company's Q1 earnings release. The company has mixed record of earnings surprises in recent quarters. However, higher investments on IaaS will affect gross margin expansion in the near-term. Further, a strong U.S. dollar remains a headwind.”
Other equities analysts have also recently issued reports about the company. Goldman Sachs Group, Inc. (The) set a $49.00 price objective on Oracle Corporation and gave the company a buy rating in a research note on Monday, June 12th. Rosenblatt Securities restated a buy rating and set a $55.00 price objective on shares of Oracle Corporation in a research note on Wednesday, June 21st. Jefferies Group LLC restated a buy rating and set a $52.00 price objective on shares of Oracle Corporation in a research note on Tuesday, June 20th. Canaccord Genuity restated a buy rating and set a $49.00 price objective on shares of Oracle Corporation in a research note on Friday, May 26th. Finally, Vetr upgraded Oracle Corporation from a hold rating to a buy rating and set a $47.00 price objective on the stock in a research note on Thursday, May 11th. One investment analyst has rated the stock with a sell rating, thirteen have given a hold rating and twenty-nine have issued a buy rating to the company. Oracle Corporation has an average rating of Buy and a consensus target price of $50.81.
Shares of Oracle Corporation (NYSE ORCL) opened at 50.33 on Monday. The company has a market capitalization of $208.20 billion, a price-to-earnings ratio of 22.77 and a beta of 1.06. Oracle Corporation has a 52-week low of $37.62 and a 52-week high of $51.85. The firm’s 50-day moving average is $49.76 and its 200 day moving average is $46.30.
Oracle Corporation (NYSE:ORCL) last issued its quarterly earnings data on Wednesday, June 21st. The enterprise software provider reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.78 by $0.11. Oracle Corporation had a return on equity of 20.90% and a net margin of 24.74%. The business had revenue of $10.94 billion for the quarter, compared to analysts’ expectations of $10.45 billion. During the same period last year, the business earned $0.81 EPS. The business’s revenue was up 3.3% on a year-over-year basis. On average, equities research analysts anticipate that Oracle Corporation will post $2.95 earnings per share for the current year.
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The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 2nd. Shareholders of record on Wednesday, July 19th were given a $0.19 dividend. The ex-dividend date was Monday, July 17th. This represents a $0.76 annualized dividend and a yield of 1.51%. Oracle Corporation’s payout ratio is currently 34.55%.
In related news, insider Thomas Kurian sold 750,000 shares of the company’s stock in a transaction that occurred on Tuesday, July 18th. The stock was sold at an average price of $50.46, for a total transaction of $37,845,000.00. Following the completion of the transaction, the insider now owns 783,533 shares in the company, valued at $39,537,075.18. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Hector Garcia-Molina sold 3,750 shares of the company’s stock in a transaction that occurred on Thursday, June 15th. The shares were sold at an average price of $44.57, for a total value of $167,137.50. Following the transaction, the director now owns 18,125 shares of the company’s stock, valued at approximately $807,831.25. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,817,500 shares of company stock valued at $91,560,925. 29.00% of the stock is owned by corporate insiders.
Several institutional investors have recently made changes to their positions in the stock. Peoples Financial Services CORP. increased its position in shares of Oracle Corporation by 1.6% in the first quarter. Peoples Financial Services CORP. now owns 25,088 shares of the enterprise software provider’s stock worth $1,119,000 after buying an additional 400 shares in the last quarter. Heritage Investors Management Corp increased its position in shares of Oracle Corporation by 6.2% in the first quarter. Heritage Investors Management Corp now owns 17,178 shares of the enterprise software provider’s stock worth $766,000 after buying an additional 1,000 shares in the last quarter. Doyle Wealth Management acquired a new position in shares of Oracle Corporation during the first quarter worth approximately $5,791,000. Iowa State Bank increased its position in shares of Oracle Corporation by 6.3% in the first quarter. Iowa State Bank now owns 37,744 shares of the enterprise software provider’s stock worth $1,684,000 after buying an additional 2,252 shares in the last quarter. Finally, Tompkins Financial Corp increased its position in shares of Oracle Corporation by 161.4% in the first quarter. Tompkins Financial Corp now owns 34,923 shares of the enterprise software provider’s stock worth $1,429,000 after buying an additional 21,564 shares in the last quarter. Institutional investors own 58.67% of the company’s stock.
Oracle Corporation Company Profile
Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support.
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