Oracle (NYSE:ORCL) Shares Up 2.7% – Still a Buy?

Oracle Corporation (NYSE:ORCL)’s stock price shot up 2.7% during mid-day trading on Tuesday . The company traded as high as $148.70 and last traded at $145.72. Approximately 43,065,091 shares traded hands during mid-day trading, an increase of 45% from the average daily volume of 29,631,799 shares. The stock had previously closed at $141.85.

Oracle News Summary

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle expanded its partnership with Alphabet’s Google Cloud, including plans to integrate Google’s Gemini AI models with Oracle software. The agreement strengthens Oracle’s position in enterprise AI and was a key catalyst for the recent rally. Why Is Oracle Stock Surging on Monday?
• Positive Sentiment: Investors are encouraged by Oracle’s reported approximately $638 billion backlog, which offers substantial future revenue visibility if the company can deploy the required data-center capacity and convert commitments into earnings. A 10-year, $7 billion U.S. Department of Defense contract adds further support for long-term cloud demand. Oracle Inks 10-Year, $7 Billion Contract With DoD
• Positive Sentiment: Recent customer wins and expansions—including Oracle Health adoption by Ontario hospitals, Minor Hotels’ rollout of OPERA Cloud across 106 properties, and Oracle’s role in a nearly $400 million federal HR modernization program—provide evidence of continued cloud and industry-software demand.
• Positive Sentiment: Oracle’s latest quarterly results exceeded expectations, with revenue up 20.6% year over year and EPS above consensus. Elevated call-option activity and bullish analyst commentary also indicate improving near-term sentiment.

Wall Street Analysts Forecast Growth

ORCL has been the topic of a number of analyst reports. Arete Research set a $255.00 target price on shares of Oracle and gave the company a “buy” rating in a report on Thursday, May 7th. KeyCorp reissued an “overweight” rating on shares of Oracle in a report on Thursday, June 11th. Sanford C. Bernstein raised their price objective on Oracle from $319.00 to $325.00 and gave the company an “outperform” rating in a report on Thursday, June 11th. Guggenheim reissued a “buy” rating on shares of Oracle in a research note on Thursday, July 23rd. Finally, Evercore reissued an “outperform” rating and set a $245.00 price objective on shares of Oracle in a research note on Monday, June 8th. Two 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. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $265.03.

Oracle Stock Performance

The firm has a market cap of $419.74 billion, a P/E ratio of 24.99, a P/E/G ratio of 0.82 and a beta of 1.72. The business has a fifty day simple moving average of $162.86 and a 200-day simple moving average of $163.71. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 3.21.

Oracle (NYSE:ORCL) last posted 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. Oracle’s quarterly revenue 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 predict that Oracle Corporation will post 6.47 EPS for the current fiscal year.

Oracle Dividend Announcement

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 dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend was Friday, July 10th. Oracle’s dividend payout ratio (DPR) is 34.31%.

Insider Transactions at Oracle

In other Oracle news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction on 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 transaction, the insider owned 400,000 shares in the company, valued at approximately $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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

Several institutional investors and hedge funds have recently modified their holdings of ORCL. DDD Partners LLC purchased a new stake in Oracle in the 4th quarter worth approximately $1,677,000. New Mexico Educational Retirement Board boosted its holdings in Oracle by 4.2% during the fourth quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider’s stock worth $14,928,000 after buying an additional 3,100 shares in the last quarter. Planning Center Inc. grew its position in Oracle by 142.2% during the fourth quarter. Planning Center Inc. now owns 6,376 shares of the enterprise software provider’s stock valued at $1,243,000 after buying an additional 3,743 shares during the period. U.S. Capital Wealth Advisors LLC increased its holdings in Oracle by 15.4% in the fourth quarter. U.S. Capital Wealth Advisors LLC now owns 42,616 shares of the enterprise software provider’s stock valued at $8,306,000 after buying an additional 5,692 shares in the last quarter. Finally, Axxcess Wealth Management LLC boosted its stake in shares of Oracle by 870.0% during the 4th 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 in the last quarter. 42.44% of the stock is currently owned by 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.