Oracle Corp. (ORCL) Rating Lowered to Sell at Zacks Investment Research
Oracle Corp. (NYSE:ORCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Oracle's first-quarter 2017 results failed to impress us. Although cloud revenue growth was strong, weak on-premise software revenues dragged down the results. Oracle is in the middle of a business transition from licensing to cloud which will be accretive to long term growth. However, it is a drag on the financials at present. Adding to that, Oracle seems to have hit a bad patch as far as litigation is concerned. Earlier this year, it lost a JAVA APIs lawsuit against Alphabet’s Google and another Itanium software lawsuit against HPE. Although, Oracle is set to to re-appeal against these verdicts, the adverse decisions will remain an overhang on the stock. Nevertheless, the ongoing momentum at SaaS and PaaS provides signficant growth opportunity. The introduction of Generation2 IaaS data centers are expected to improve Oracle’s competitive prowess against Amazon Web Services and will drive market share going ahead.”
Other equities research analysts also recently issued research reports about the stock. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $51.00 price target on shares of Oracle Corp. in a research note on Friday, July 15th. Macquarie reaffirmed an “outperform” rating on shares of Oracle Corp. in a research note on Tuesday, July 19th. Atlantic Securities downgraded shares of Oracle Corp. from an “overweight” rating to a “neutral” rating and dropped their price target for the stock from $48.00 to $44.00 in a research note on Tuesday, July 19th. BTIG Research lifted their price target on shares of Oracle Corp. from $44.00 to $47.00 and gave the stock a “buy” rating in a research note on Thursday, July 14th. Finally, Vetr downgraded shares of Oracle Corp. from a “buy” rating to a “hold” rating and set a $41.24 price target on the stock. in a research note on Monday, August 15th. Three investment analysts have rated the stock with a sell rating, sixteen have issued a hold rating, twenty-five have issued a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $44.88.
Shares of Oracle Corp. (NYSE:ORCL) opened at 39.51 on Tuesday. The stock’s 50 day moving average is $40.83 and its 200 day moving average is $40.35. The firm has a market cap of $162.74 billion, a P/E ratio of 18.77 and a beta of 1.08. Oracle Corp. has a 52 week low of $33.13 and a 52 week high of $42.00.
Oracle Corp. (NYSE:ORCL) last posted its earnings results on Thursday, September 15th. The enterprise software provider reported $0.55 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.58 by $0.03. The business had revenue of $8.60 billion for the quarter. Oracle Corp. had a net margin of 24.16% and a return on equity of 22.10%. The company’s quarterly revenue was up 1.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.53 EPS. On average, equities research analysts predict that Oracle Corp. will post $2.64 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 26th. Stockholders of record on Wednesday, October 12th will be paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.52%. The ex-dividend date of this dividend is Friday, October 7th. Oracle Corp.’s dividend payout ratio is 28.57%.
In related news, Director Hector Garcia-Molina sold 3,750 shares of the stock in a transaction dated Friday, July 15th. The shares were sold at an average price of $41.78, for a total transaction of $156,675.00. Following the completion of the sale, the director now owns 8,281 shares in the company, valued at approximately $345,980.18. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP John F. Fowler sold 500,000 shares of the stock in a transaction dated Thursday, August 11th. The stock was sold at an average price of $41.17, for a total transaction of $20,585,000.00. Following the sale, the executive vice president now owns 119,645 shares of the company’s stock, valued at approximately $4,925,784.65. The disclosure for this sale can be found here. 28.00% of the stock is currently owned by insiders.
Several large investors have recently made changes to their positions in the company. Camarda Financial Advisors LLC boosted its stake in shares of Oracle Corp. by 9.6% in the second quarter. Camarda Financial Advisors LLC now owns 2,443 shares of the enterprise software provider’s stock worth $100,000 after buying an additional 215 shares during the period. Cribstone Capital Management LLC purchased a new stake in shares of Oracle Corp. during the second quarter worth about $102,000. WESPAC Advisors SoCal LLC boosted its stake in shares of Oracle Corp. by 20.8% in the second quarter. WESPAC Advisors SoCal LLC now owns 2,900 shares of the enterprise software provider’s stock worth $119,000 after buying an additional 500 shares during the period. FCM Investments TX boosted its stake in shares of Oracle Corp. by 20.0% in the second quarter. FCM Investments TX now owns 3,000 shares of the enterprise software provider’s stock worth $123,000 after buying an additional 500 shares during the period. Finally, Proficio Capital Partners LLC boosted its stake in shares of Oracle Corp. by 46.9% in the second quarter. Proficio Capital Partners LLC now owns 3,016 shares of the enterprise software provider’s stock worth $124,000 after buying an additional 963 shares during the period. Institutional investors and hedge funds own 58.00% of the company’s stock.
About Oracle Corp.
Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support.
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