Oracle (NYSE:ORCL) Shares Down 5.5% Following Analyst Downgrade

Shares of Oracle Corporation (NYSE:ORCL) dropped 5.5% during trading on Tuesday after TD Cowen lowered their price target on the stock from $300.00 to $240.00. TD Cowen currently has a buy rating on the stock. Oracle traded as low as $139.95 and last traded at $140.99. 25,023,501 shares traded hands during mid-day trading, a decline of 13% from the average session volume of 28,794,771 shares. The stock had previously closed at $149.12.

ORCL has been the topic of a number of other research reports. BTIG Research restated a “buy” rating and issued a $400.00 price target on shares of Oracle in a research report on Friday, June 5th. Scotiabank reiterated an “overweight” rating on shares of Oracle 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 report on Thursday, June 11th. Arete Research set a $255.00 price target on shares of Oracle and gave the company a “buy” rating in a research report on Thursday, May 7th. Finally, Sanford C. Bernstein increased their price target on Oracle from $319.00 to $325.00 and gave the stock an “outperform” rating in a report on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Oracle currently has an average rating of “Moderate Buy” and an average price target of $262.39.

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 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 transaction, the insider owned 400,000 shares in the company, valued at $63,664,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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.

More Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle’s contracted backlog reached approximately $638 billion at the end of fiscal 2026, up 363% year over year. Management expects about 12% of that backlog to convert to revenue within 12 months, supporting the long-term cloud-growth outlook. Oracle Has $638 Billion of Contracted Backlog and a $430 Billion Stock
• Positive Sentiment: Analysts at Zacks see a favorable setup for another earnings beat based on Oracle’s historical surprise record and current estimate trends. Oracle’s latest quarterly report also exceeded consensus for both earnings and revenue. Why Oracle Is Poised to Beat Earnings Estimates Again
• Positive Sentiment: TD Cowen lowered its price target to $240 from $300 but maintained a “buy” rating, implying substantial potential upside if Oracle delivers on its AI-cloud growth plans. Wall Street Is Divided on Oracle Stock
• Neutral Sentiment: Oracle’s next quarterly results are expected in mid-September, making the stock particularly sensitive to updates on cloud bookings, revenue conversion, capital spending and financing needs.
• Negative Sentiment: Oracle generated roughly negative $23.7 billion in free cash flow last fiscal year, raised $43 billion in debt, and expects to raise about $40 billion more in fiscal 2027. Higher Treasury yields increase the cost and risk of this debt-funded AI buildout. Why Is Oracle Stock Down Today?
• Negative Sentiment: Investors are also concerned about approximately $260 billion in additional lease commitments, largely tied to data centers, as spending arrives before contracted bookings fully translate into revenue. Analysts remain divided over leverage, execution risk and the reported short position held by Michael Burry. Wall Street Is Divided on Oracle Stock

Institutional Investors Weigh In On Oracle

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Oracle during the second quarter valued at about $625,454,000. Edmond DE Rothschild Holding S.A. increased its stake in Oracle by 8.7% in the 2nd quarter. Edmond DE Rothschild Holding S.A. now owns 79,008 shares of the enterprise software provider’s stock valued at $11,579,000 after buying an additional 6,296 shares during the last quarter. New Mexico Educational Retirement Board grew its holdings 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 acquiring an additional 3,100 shares in the last quarter. Valeo Financial Advisors LLC increased its position in shares of Oracle by 4.6% during the second quarter. Valeo Financial Advisors LLC now owns 80,686 shares of the enterprise software provider’s stock valued at $11,825,000 after acquiring an additional 3,584 shares during the last quarter. Finally, Axxcess Wealth Management LLC lifted its holdings in Oracle by 870.0% during the fourth quarter. Axxcess Wealth Management LLC now owns 671,452 shares of the enterprise software provider’s stock worth $128,012,000 after acquiring an additional 602,230 shares during the period. 42.44% of the stock is owned by institutional investors.

Oracle Price Performance

The stock has a market cap of $406.12 billion, a P/E ratio of 24.18, a P/E/G ratio of 0.94 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. The business has a 50 day simple moving average of $140.21 and a 200-day simple moving average of $160.55.

Oracle (NYSE:ORCL) last announced its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, topping the consensus estimate of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The business had revenue of $19.18 billion for the quarter, compared to analyst estimates of $19.10 billion. During the same quarter in the previous year, the firm posted $1.70 earnings per share. The company’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. On average, sell-side analysts forecast that Oracle Corporation will post 6.49 EPS for the current year.

Oracle Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were issued a $0.50 dividend. The ex-dividend date of this dividend was Friday, July 10th. This represents a $2.00 annualized dividend and a yield of 1.4%. Oracle’s dividend payout ratio (DPR) is 34.31%.

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.