Oracle (NYSE:ORCL) Trading Up 2.4% – What’s Next?

Oracle Corporation (NYSE:ORCL)’s stock price traded up 2.4% during mid-day trading on Friday . The stock traded as high as $147.16 and last traded at $146.93. Approximately 21,981,880 shares traded hands during trading, a decline of 25% from the average session volume of 29,481,105 shares. The stock had previously closed at $143.47.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s record backlog, cloud ERP growth and database software demand continue to support expectations for strong revenue expansion. Its latest quarter also exceeded consensus estimates for both earnings and revenue, with sales increasing 20.6% year over year. Oracle leans on record backlog as cloud and AI rally builds
• Positive Sentiment: Some analysts remain bullish, arguing that Oracle’s AI infrastructure investments could translate into substantial future cloud growth. Wall Street’s consensus target implies significant upside from current levels, although investors want clearer evidence that demand will produce attractive profits. What Larry Ellison needs to do to convince investors Oracle stock is still a buy
• Neutral Sentiment: UBS maintained a Buy rating but reduced its Oracle price target to $245 from $285. The revision reflects concerns about AI infrastructure spending, returns on invested capital, credit-market conditions and Oracle’s exposure to OpenAI. Oracle price target lowered by UBS amid AI spending concerns
• Negative Sentiment: Oracle’s aggressive, debt-funded data-center buildout is raising fears of credit-rating pressure, higher financing costs and weaker cash returns. The central investment risk is that record AI demand may be expensive to serve, compressing margins and reducing the payoff from capital expenditures. Borrowing to the brink: How Oracle’s AI expansion put its credit rating on life support
• Negative Sentiment: Investor Michael Burry reportedly reopened a short position in Oracle, betting that AI-related technology stocks and data-center spending look overvalued. The high-profile trade may add to negative sentiment, though it does not change Oracle’s underlying operating results. Michael Burry says he’s shorting AI stars Oracle and Nebius

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ORCL. Oppenheimer lifted their price target on Oracle from $235.00 to $275.00 and gave the company an “outperform” rating in a research report on Monday, June 8th. Royal Bank Of Canada reissued a “sector perform” rating and set a $190.00 price objective on shares of Oracle in a report on Thursday, June 11th. Stephens restated an “equal weight” rating and issued a $164.00 target price on shares of Oracle in a research note on Thursday, June 11th. KeyCorp reaffirmed an “overweight” rating on shares of Oracle in a report on Thursday, June 11th. Finally, Scotiabank reiterated an “overweight” 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 issued a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $263.97.

Oracle Stock Performance

The firm has a market capitalization of $423.23 billion, a PE ratio of 25.20, a PEG ratio of 0.91 and a beta of 1.72. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 3.21. The company has a 50-day moving average of $159.80 and a 200 day moving average of $162.72.

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, beating the consensus estimate of $1.96 by $0.15. The firm 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 last 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. Equities research analysts predict that Oracle Corporation will post 6.47 EPS for the current year.

Oracle Announces Dividend

The business also recently disclosed 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 1.4%. The ex-dividend date was Friday, July 10th. Oracle’s dividend payout ratio is 34.31%.

Insiders Place Their Bets

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction that occurred on Wednesday, June 24th. The shares were 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 directly owned 400,000 shares in the company, valued at $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Oracle

Institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC boosted its holdings in shares of Oracle by 189.3% in the 4th quarter. Brighton Jones LLC now owns 153,580 shares of the enterprise software provider’s stock worth $25,593,000 after purchasing an additional 100,494 shares in the last quarter. Revolve Wealth Partners LLC raised its holdings in shares of Oracle by 8.1% during the 4th quarter. Revolve Wealth Partners LLC now owns 5,418 shares of the enterprise software provider’s stock valued at $903,000 after buying an additional 404 shares in the last quarter. Sivia Capital Partners LLC raised its holdings in shares of Oracle by 21.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,348 shares of the enterprise software provider’s stock valued at $951,000 after buying an additional 768 shares in the last quarter. United Bank lifted its position in Oracle by 6.8% in the 2nd quarter. United Bank now owns 15,038 shares of the enterprise software provider’s stock worth $3,288,000 after buying an additional 963 shares during the last quarter. Finally, Schnieders Capital Management LLC. lifted its position in Oracle by 19.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 52,856 shares of the enterprise software provider’s stock worth $11,556,000 after buying an additional 8,530 shares during the last quarter. 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.