Oracle (NYSE:ORCL) Shares Down 1.8% – Here’s Why

Oracle Corporation (NYSE:ORCL) traded down 1.8% during trading on Wednesday . The company traded as low as $116.20 and last traded at $117.77. 27,206,648 shares were traded during mid-day trading, a decline of 7% from the average session volume of 29,253,813 shares. The stock had previously closed at $119.96.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: DA Davidson analyst Gil Luria argues that Wall Street is effectively assigning little value to Oracle’s reported $630 billion AI backlog. He believes the company’s large cloud-infrastructure contracts and enterprise demand for AI capacity could provide substantial upside as investors gain confidence in the backlog’s economics. Wall Street Is Valuing Oracle’s $630B AI Backlog at Zero
• Positive Sentiment: A previously announced $7 billion Pentagon cloud deal is being cited as evidence of Oracle’s AI-cloud momentum and a source of potential revenue visibility. Oracle also expanded OCI distribution in Australia through Ingram Micro, broadening access to its cloud and AI services. $7 Billion Reason to Buy Oracle Stock Now
• Positive Sentiment: Some research continues to view the selloff as an opportunity, pointing to Oracle’s record cloud growth, AI backlog and partnerships. Consensus price targets imply substantial upside, although those targets have not prevented continued selling. Oracle vs. Alibaba
• Neutral Sentiment: Oracle’s latest reported quarter exceeded expectations, with adjusted EPS of $2.11 versus $1.96 expected and revenue of $19.18 billion versus $19.10 billion expected. Revenue increased 20.6% year over year, but investors are currently focusing more on forward AI spending and funding risks.
• Negative Sentiment: Oracle’s credit-default-swap costs have risen to roughly 200 basis points, signaling increased investor concern about its debt burden and the returns on debt-funded AI infrastructure. The broader hyperscaler group issued about $194 billion of bonds through early July, intensifying worries about supply, yields and AI-capital-spending fatigue. Oracle Stock Drops as Default Insurance Hits 200 Basis Points
• Negative Sentiment: Investor concern also surrounds Executive Chairman Larry Ellison’s personal guarantee of $40.4 billion backing equity financing for Paramount Skydance’s proposed Warner Bros. Discovery transaction. The commitment could create indirect financial and reputational risk for Oracle shareholders. Larry Ellison’s Personal Guarantee

Wall Street Analyst Weigh In

A number of brokerages have commented on ORCL. Barclays increased their target price on Oracle from $240.00 to $250.00 and gave the company an “overweight” rating in a report on Thursday, June 11th. Scotiabank restated an “overweight” rating on shares of Oracle in a research report on Thursday, June 11th. Mizuho set a $320.00 price objective on Oracle in a research report on Wednesday, June 3rd. Wedbush cut their target price on shares of Oracle from $275.00 to $240.00 and set an “outperform” rating for the company in a research note on Thursday, June 11th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Oracle in a research note on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Oracle has an average rating of “Moderate Buy” and a consensus target price of $265.03.

Oracle Stock Performance

The company has a market cap of $339.23 billion, a price-to-earnings ratio of 20.20, a P/E/G ratio of 0.75 and a beta of 1.72. 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 stock’s 50 day moving average price is $167.75 and its 200 day moving average price is $165.67.

Oracle (NYSE:ORCL) last released its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share (EPS) for the quarter, topping the consensus estimate 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 net margin of 25.37% and a return on equity of 58.62%. The company’s quarterly revenue was up 20.6% on a year-over-year basis. During the same period last 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. On average, analysts expect that Oracle Corporation will post 6.47 EPS for the current fiscal year.

Oracle Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were given a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Friday, July 10th. Oracle’s dividend payout ratio (DPR) is 34.31%.

Insiders Place Their Bets

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of the business’s stock in a transaction dated 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 sale, 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.90% of the company’s stock.

Hedge Funds Weigh In On Oracle

A number of large investors have recently modified their holdings of the company. Norges Bank acquired a new position in Oracle during the fourth quarter valued at approximately $4,336,031,000. Capital Research Global Investors increased its position in shares of Oracle by 29.3% in the fourth quarter. Capital Research Global Investors now owns 30,137,126 shares of the enterprise software provider’s stock worth $5,874,070,000 after acquiring an additional 6,826,299 shares in the last quarter. Vanguard Group Inc. raised its stake in shares of Oracle by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider’s stock valued at $34,070,674,000 after acquiring an additional 5,841,584 shares during the period. Cardano Risk Management B.V. lifted its holdings in shares of Oracle by 882.3% during the 4th quarter. Cardano Risk Management B.V. now owns 4,991,010 shares of the enterprise software provider’s stock valued at $972,798,000 after acquiring an additional 4,482,934 shares in the last quarter. Finally, FIL Ltd lifted its holdings in shares of Oracle by 1,605.7% during the 4th quarter. FIL Ltd now owns 3,976,441 shares of the enterprise software provider’s stock valued at $775,048,000 after acquiring an additional 3,743,314 shares in the last quarter. 42.44% of the stock is currently owned by hedge funds and other institutional investors.

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.