Oracle (NYSE:ORCL) Stock Price Down 3% – Time to Sell?

Shares of Oracle Corporation (NYSE:ORCL) were down 3% on Thursday . The stock traded as low as $150.36 and last traded at $152.8180. 36,062,270 shares traded hands during mid-day trading, an increase of 31% from the average session volume of 27,455,092 shares. The stock had previously closed at $157.53.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle Health and Theator announced an AI-powered surgical reporting partnership, adding another real-world use case for Oracle Cloud Infrastructure in healthcare. Oracle Health (ORCL), Theator Partner to Automate Surgical Reporting with AI
• Positive Sentiment: Several recent articles highlighted Oracle’s massive contract backlog and strong AI cloud demand, arguing the company has improved long-term revenue visibility despite near-term volatility. Oracle’s Contract Backlog Swells: Is Long-Term Revenue Growth Secured?
• Positive Sentiment: Wall Street sentiment remains broadly constructive, with coverage pointing to dozens of buy ratings and meaningful upside from current levels. Oracle stock has worst week since 2001 dot-com bust as AI financing concerns escalate
• Neutral Sentiment: Oracle was also featured in commentary suggesting the recent sell-off may be overdone and more a valuation/mispricing issue than a fundamental break in the AI story. Oracle’s Market Disconnect: The Truth Can Make You Rich
• Negative Sentiment: Investor concern is centered on Oracle’s aggressive AI spending: capital expenditures surged, free cash flow turned deeply negative, and debt is now high, raising questions about financing the buildout. Oracle stock has worst week since 2001 dot-com bust as AI financing concerns escalate
• Negative Sentiment: OpenAI IPO delay fears weighed on Oracle and other AI-related stocks, since Oracle is tied to the broader AI infrastructure trade. OpenAI May Push Back Highly-Awaited IPO to 2027, Slamming SoftBank and Oracle Shares
• Negative Sentiment: Oracle Vice Chairman Jeffrey Henley sold 400,000 shares in a pre-arranged 10b5-1 plan, a headline that can add to sentiment pressure even if the sale was scheduled. SEC filing for Jeffrey Henley stock sale

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on ORCL. Oppenheimer increased their price target on Oracle from $235.00 to $275.00 and gave the stock an “outperform” rating in a report on Monday, June 8th. Barclays upped their price objective on shares of Oracle from $240.00 to $250.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th. Wolfe Research restated an “outperform” rating and issued a $225.00 target price on shares of Oracle in a research note on Thursday, June 11th. Weiss Ratings raised shares of Oracle from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 29th. Finally, Robert W. Baird cut their price target on shares of Oracle from $300.00 to $200.00 and set an “outperform” rating for the company in a report on Tuesday, March 10th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Oracle currently has an average rating of “Moderate Buy” and an average price target of $268.27.

Oracle Stock Performance

The stock’s 50-day moving average price is $189.53 and its 200-day moving average price is $175.69. The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.35 and a current ratio of 1.12. The company has a market capitalization of $428.27 billion, a price-to-earnings ratio of 25.50, a P/E/G ratio of 0.96 and a beta of 1.65.

Oracle (NYSE:ORCL) last released 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. The business had revenue of $19.18 billion for the quarter, compared to analysts’ expectations of $19.10 billion. Oracle had a return on equity of 58.62% and a net margin of 25.37%.The company’s revenue was up 20.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.70 EPS. 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 research analysts expect that Oracle Corporation will post 6.45 earnings per share for the current year.

Oracle Announces Dividend

The company 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 $0.50 dividend. The ex-dividend date is Friday, July 10th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.3%. Oracle’s dividend payout ratio (DPR) is currently 34.31%.

Insider Buying and Selling at Oracle

In related news, Vice Chairman Jeffrey Henley sold 400,000 shares of the business’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $159.16, for a total value of $63,664,000.00. Following the completion of the transaction, the insider owned 400,000 shares of the company’s stock, valued at approximately $63,664,000. The trade was a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Stuart Levey sold 15,000 shares of the stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $176.19, for a total value of $2,642,850.00. Following the transaction, the executive vice president directly owned 3,429 shares in the company, valued at approximately $604,155.51. This represents a 81.39% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company’s stock.

Institutional Trading of Oracle

A number of hedge funds have recently added to or reduced their stakes in ORCL. Xponance Inc. boosted its holdings in Oracle by 1.8% in the 3rd quarter. Xponance Inc. now owns 406,544 shares of the enterprise software provider’s stock worth $114,336,000 after acquiring an additional 7,320 shares during the period. DDD Partners LLC acquired a new position in shares of Oracle during the fourth quarter worth $1,677,000. William Blair Investment Management LLC lifted its position in shares of Oracle by 28.6% during the third quarter. William Blair Investment Management LLC now owns 1,107,586 shares of the enterprise software provider’s stock worth $311,497,000 after purchasing an additional 246,243 shares in the last quarter. New Mexico Educational Retirement Board boosted its stake in shares of Oracle by 4.2% in the fourth quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider’s stock valued at $14,928,000 after purchasing an additional 3,100 shares during the period. Finally, KADENSA CAPITAL Ltd grew its holdings in Oracle by 1,945.8% during the 3rd quarter. KADENSA CAPITAL Ltd now owns 92,736 shares of the enterprise software provider’s stock valued at $26,081,000 after purchasing an additional 88,203 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.