Oracle (NYSE:ORCL) Trading 6% Higher – Still a Buy?

Shares of Oracle Corporation (NYSE:ORCL) shot up 6% on Thursday . The company traded as high as $156.77 and last traded at $154.50. 24,515,779 shares changed hands during trading, a decline of 15% from the average daily volume of 28,730,990 shares. The stock had previously closed at $145.75.

Key Headlines Impacting Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Strong results from cloud-data company Snowflake, including an AI-driven outlook increase, helped support broader enthusiasm for enterprise software and cloud stocks, providing a positive read-through for Oracle’s AI-cloud strategy. Snowflake Soars 23% as AI-Fueled Guidance Raise Tops Estimates, Oracle Advances 3%, Cloudflare Edges Higher
• Positive Sentiment: Oracle and Hewlett Packard Enterprise expanded a multiyear collaboration to deploy HPE Juniper Networking across Oracle’s global AI data centers. The agreement reinforces Oracle’s plans to scale gigawatt-level AI infrastructure and may improve its ability to meet cloud demand. HPE and Oracle Deepen Networking Collaboration
• Positive Sentiment: Several reports argue that Oracle’s depressed valuation, strong cloud bookings, and approximately $638 billion remaining-performance-obligation backlog could support a substantial recovery if the company converts those commitments into revenue and earnings. Jefferies maintained a Buy rating despite lowering its target to $290. Oracle Is Down 25%. Jefferies Says the Worst May Be Priced In
• Neutral Sentiment: Oracle will release fiscal first-quarter 2027 results after the market close on September 10. Investors are likely to scrutinize AI-cloud growth, bookings, capital spending, cash flow, leverage, and whether the backlog is beginning to translate into reported revenue. Oracle Sets the Date for its First Quarter Fiscal Year 2027 Earnings Announcement
• Negative Sentiment: Analysts have recently reduced price targets, including TD Cowen’s cut to $240, reflecting concerns that Oracle’s aggressive AI-data-center investment is driving negative free cash flow and increasing debt. Those concerns could limit the stock’s upside if cloud growth fails to accelerate. TD Cowen Lowers Oracle Price Target
• Negative Sentiment: Regulatory and political risks remain overhangs: EU antitrust regulators are reportedly examining Oracle’s licensing practices, while Executive Chairman Larry Ellison is expected to face congressional scrutiny related to Oracle’s Veterans Affairs work. Oracle Licensing Practices on EU Antitrust Regulator’s Radar

Analysts Set New Price Targets

Several research analysts recently weighed in on ORCL shares. Oppenheimer upped their price objective on shares of Oracle from $235.00 to $275.00 and gave the stock an “outperform” rating in a research report on Monday, June 8th. Wedbush lowered their target price on Oracle from $275.00 to $240.00 and set an “outperform” rating for the company in a research note on Thursday, June 11th. TD Cowen dropped their price target on shares of Oracle from $300.00 to $240.00 and set a “buy” rating for the company in a research report on Tuesday. Mizuho set a $320.00 target price on Oracle in a research note on Wednesday, June 3rd. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $190.00 price objective on shares of Oracle in a report on Thursday, June 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $261.61.

Oracle Stock Up 6.0%

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 company’s 50 day simple moving average is $139.50 and its 200-day simple moving average is $160.36. The firm has a market cap of $445.03 billion, a P/E ratio of 26.50, a PEG ratio of 1.05 and a beta of 1.74.

Oracle (NYSE:ORCL) last announced 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 return on equity of 58.62% and a net margin of 25.37%.The business’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same period last year, the firm posted $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. Research analysts forecast that Oracle Corporation will post 6.49 earnings per share for the current fiscal year.

Oracle Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Friday, July 10th. Oracle’s dividend payout ratio (DPR) is 34.31%.

Insider Buying and Selling

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 stock was sold at an average price of $159.16, for a total value of $63,664,000.00. Following the sale, the insider owned 400,000 shares of the company’s stock, 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 SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Oracle during the second quarter worth $625,454,000. Edmond DE Rothschild Holding S.A. increased its stake in shares of Oracle by 8.7% during the second quarter. Edmond DE Rothschild Holding S.A. now owns 79,008 shares of the enterprise software provider’s stock worth $11,579,000 after buying an additional 6,296 shares during the period. New Mexico Educational Retirement Board increased its position in shares of Oracle by 4.2% in the 4th quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider’s stock valued at $14,928,000 after purchasing an additional 3,100 shares during the last quarter. Valeo Financial Advisors LLC raised its stake in Oracle by 4.6% in 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 buying an additional 3,584 shares in the last quarter. Finally, Axxcess Wealth Management LLC raised its position 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 owned by hedge funds and other institutional investors.

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.