Erste Group Bank Increases Earnings Estimates for Oracle

Oracle Corporation (NYSE:ORCL) – Equities researchers at Erste Group Bank lifted their FY2027 earnings per share (EPS) estimates for shares of Oracle in a report released on Friday, June 5th. Erste Group Bank analyst H. Engel now anticipates that the enterprise software provider will post earnings per share of $6.33 for the year, up from their previous estimate of $6.32. The consensus estimate for Oracle’s current full-year earnings is $6.33 per share.

ORCL has been the subject of several other research reports. Weiss Ratings raised Oracle from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 29th. Morgan Stanley reissued a “mixed” rating on shares of Oracle in a report on Thursday. DA Davidson lifted their price objective on Oracle from $200.00 to $225.00 and gave the stock a “buy” rating in a report on Thursday. JPMorgan Chase & Co. upgraded Oracle from a “neutral” rating to an “overweight” rating and cut their target price for the stock from $230.00 to $210.00 in a research note on Wednesday, March 11th. Finally, BMO Capital Markets raised their target price on Oracle from $200.00 to $220.00 and gave the stock an “outperform” rating in a research note on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $268.27.

Oracle Trading Down 8.6%

Shares of ORCL opened at $184.03 on Friday. The business has a 50-day moving average of $183.90 and a 200 day moving average of $177.88. Oracle has a fifty-two week low of $134.57 and a fifty-two week high of $345.72. The firm has a market cap of $529.27 billion, a P/E ratio of 31.57, a price-to-earnings-growth ratio of 1.58 and a beta of 1.65. The company has a debt-to-equity ratio of 3.66, a quick ratio of 1.35 and a current ratio of 1.35.

Oracle (NYSE:ORCL) last announced its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, topping the consensus estimate of $1.96 by $0.15. Oracle had a return on equity of 62.74% and a net margin of 25.37%.The company had revenue of $19.18 billion during the quarter, compared to analyst estimates of $19.10 billion. During the same quarter last year, the firm posted $1.70 EPS. The firm’s revenue for the quarter 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.

Oracle Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Friday, July 10th. Oracle’s dividend payout ratio (DPR) is 35.91%.

Insider Activity

In other news, EVP Stuart Levey sold 15,000 shares of Oracle stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $176.19, for a total transaction of $2,642,850.00. Following the completion of the sale, the executive vice president owned 3,429 shares in the company, valued at approximately $604,155.51. This trade represents a 81.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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

A number of large investors have recently modified their holdings of the business. FAS Wealth Partners Inc. boosted its position in shares of Oracle by 7.1% during the 1st quarter. FAS Wealth Partners Inc. now owns 6,529 shares of the enterprise software provider’s stock valued at $961,000 after acquiring an additional 430 shares during the last quarter. Rathbones Group PLC boosted its position in shares of Oracle by 1.1% during the 1st quarter. Rathbones Group PLC now owns 44,975 shares of the enterprise software provider’s stock valued at $6,616,000 after acquiring an additional 473 shares during the last quarter. Robinswood Financial LLC bought a new stake in shares of Oracle during the 1st quarter valued at about $54,000. First National Bank of Mount Dora Trust Investment Services boosted its position in shares of Oracle by 31.1% during the 1st quarter. First National Bank of Mount Dora Trust Investment Services now owns 47,844 shares of the enterprise software provider’s stock valued at $7,038,000 after acquiring an additional 11,356 shares during the last quarter. Finally, Wealthquest Corp boosted its position in shares of Oracle by 12.6% during the 1st quarter. Wealthquest Corp now owns 2,403 shares of the enterprise software provider’s stock valued at $354,000 after acquiring an additional 269 shares during the last quarter. Institutional investors own 42.44% of the company’s stock.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle beat fiscal Q4 earnings and revenue estimates, with revenue up 21% year over year and cloud infrastructure revenue up 93%, showing strong demand for its AI and cloud services.
• Positive Sentiment: The company raised FY2027 revenue and EPS guidance and reported a record $638 billion remaining performance obligation backlog, signaling substantial future demand.
• Positive Sentiment: Oracle also won a $395.8 million U.S. Office of Personnel Management contract to modernize federal HR systems, adding a new government customer win.
• Neutral Sentiment: Analysts at several firms raised or reaffirmed price targets after the report, indicating Wall Street still sees upside despite the selloff.
• Negative Sentiment: Investors reacted negatively to Oracle’s plan to sharply increase AI-related capital expenditures and raise about $40 billion in debt and equity financing, which sparked fears over cash burn and leverage.
• Negative Sentiment: Reports of an active PeopleSoft zero-day attack and Oracle’s urgent patch warning may add near-term cybersecurity concerns, though this is more of a reputational issue than a direct earnings hit.

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.