Oracle (NYSE:ORCL) Trading 8.4% Higher – Still a Buy?

Oracle Corporation (NYSE:ORCL)’s stock price traded up 8.4% on Thursday . The stock traded as high as $128.34 and last traded at $127.5950. Approximately 37,002,297 shares were traded during mid-day trading, an increase of 26% from the average daily volume of 29,349,928 shares. The stock had previously closed at $117.74.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Gemini integration expands Oracle’s AI proposition. Oracle and Google Cloud will make Gemini models available across Oracle Fusion Cloud Applications and NetSuite, potentially helping thousands of business customers automate workflows, improve decision-making and deploy agentic applications. The integration may increase the appeal and usage of Oracle’s cloud applications while reducing concerns about its ability to compete in enterprise AI. Oracle to Make Gemini Models Available to Thousands of Enterprise Applications Customers
• Positive Sentiment: Analyst support and the AI backlog remain catalysts. A DA Davidson analyst argued that investors are assigning little or no value to Oracle’s reported $630 billion AI-related backlog, including long-term compute commitments from OpenAI. Separately, a Seeking Alpha analysis upgraded Oracle, suggesting the recent valuation reset may offer upside if AI contracts convert into revenue and cash flow. Wall Street Is Valuing Oracle’s $630B AI Backlog at Zero
• Neutral Sentiment: AI-cloud stocks staged a sector-wide rebound. Oracle rose alongside Nebius and CoreWeave as investors bought back AI infrastructure names after a sharp selloff tied to concerns about credit risk. The recovery supports sentiment toward Oracle’s AI exposure, but it may reflect broader positioning and volatility rather than a company-specific change in fundamentals. AI Cloud Names Snap Back
• Negative Sentiment: Financing and execution risks continue to weigh on the stock. Oracle’s credit-default-swap costs reportedly climbed sharply as investors questioned the returns from debt-funded AI infrastructure. Higher borrowing costs, heavy capital requirements and uncertainty over the timing of AI contract monetization could limit the benefit of the company’s backlog and pressure shareholder returns. Oracle Stock Drops as Default Insurance Hits 200 Basis Points

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Mizuho set a $320.00 price objective on Oracle in a report on Wednesday, June 3rd. CLSA began coverage on shares of Oracle in a research report on Monday, July 20th. They set a “hold” rating and a $145.00 target price for the company. Cantor Fitzgerald reissued an “overweight” rating and issued a $284.00 price target on shares of Oracle in a research note on Thursday, June 11th. Evercore reissued an “outperform” rating and issued a $245.00 price target on shares of Oracle in a report on Monday, June 8th. Finally, Citigroup restated a “market outperform” rating on shares of Oracle in a research report on Thursday, June 11th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $265.03.

Oracle Stock Up 8.4%

The stock has a 50-day moving average of $166.35 and a two-hundred day moving average of $165.16. The company has a market cap of $367.53 billion, a P/E ratio of 21.89, a P/E/G ratio of 0.75 and a beta of 1.72. The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.12 and a current ratio of 1.12.

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

Oracle Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were issued a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 1.6%. Oracle’s dividend payout ratio (DPR) is currently 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 on 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 sale, the insider directly owned 400,000 shares of the company’s stock, valued at $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of ORCL. HFM Investment Advisors LLC lifted its position in Oracle by 290.9% in the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock valued at $25,000 after purchasing an additional 96 shares during the last quarter. Basepoint Wealth LLC bought a new position in shares of Oracle in the fourth quarter worth approximately $26,000. FSA Wealth Management LLC bought a new position in shares of Oracle in the third quarter worth approximately $28,000. Osbon Capital Management LLC purchased a new position in shares of Oracle in the fourth quarter worth $28,000. Finally, Joseph Group Capital Management bought a new stake in Oracle during the 4th quarter valued at $29,000. Hedge funds and other institutional investors own 42.44% of the company’s stock.

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.