Oracle (ORCL) Stock Rating Upgraded by Zacks Investment Research
Oracle (NYSE:ORCL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Oracle is one of the largest enterprise-grade database, middleware and application software providers. The company is benefiting from strong adoption of its cloud-based solutions. We believe that the company’s growing cloud market share will continue to drive top-line growth in the long haul. We note that partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele. Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS. Nonetheless, stiff competition in the cloud is expected to hurt margins and will make revenue growth difficult. Notably, Oracle has undergone structural changes. It no longer intends to break out its cloud revenues and does not provide any guidance on SaaS, Cloud PaaS and IaaS. This move is likely to enhance investor concern about the company's outlook.”
Several other analysts also recently weighed in on ORCL. Credit Suisse Group reiterated a “buy” rating and set a $60.00 price target on shares of Oracle in a research note on Thursday, June 7th. UBS Group reiterated a “neutral” rating and set a $53.00 price target on shares of Oracle in a research note on Tuesday, June 12th. JPMorgan Chase & Co. downgraded Oracle from an “overweight” rating to a “neutral” rating and dropped their price target for the company from $55.00 to $53.00 in a research note on Thursday, June 14th. Nomura dropped their price target on Oracle from $64.00 to $60.00 and set a “buy” rating on the stock in a research note on Thursday, June 14th. Finally, KeyCorp reiterated a “hold” rating on shares of Oracle in a research note on Friday, June 15th. Fifteen analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $55.19.
Oracle (NYSE:ORCL) last announced its earnings results on Tuesday, June 19th. The enterprise software provider reported $0.99 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.94 by $0.05. The company had revenue of $11.26 billion for the quarter, compared to analyst estimates of $11.17 billion. Oracle had a return on equity of 23.14% and a net margin of 9.61%. The firm’s quarterly revenue was up 2.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.89 EPS. research analysts expect that Oracle will post 3.05 EPS for the current fiscal year.
In other news, EVP W Corey West sold 48,000 shares of the company’s stock in a transaction dated Monday, June 25th. The stock was sold at an average price of $43.73, for a total value of $2,099,040.00. Following the sale, the executive vice president now owns 907 shares in the company, valued at $39,663.11. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Hector Garcia-Molina sold 3,750 shares of the stock in a transaction that occurred on Wednesday, August 15th. The stock was sold at an average price of $47.77, for a total value of $179,137.50. Following the transaction, the director now owns 27,969 shares in the company, valued at approximately $1,336,079.13. The disclosure for this sale can be found here. Insiders sold 546,750 shares of company stock worth $24,546,728 in the last 90 days. Company insiders own 29.00% of the company’s stock.
A number of hedge funds have recently modified their holdings of ORCL. FMR LLC boosted its position in Oracle by 21.4% during the second quarter. FMR LLC now owns 47,683,832 shares of the enterprise software provider’s stock worth $2,100,949,000 after purchasing an additional 8,401,411 shares in the last quarter. Charles Schwab Investment Advisory Inc. purchased a new position in Oracle during the second quarter worth approximately $218,896,000. Summit Trail Advisors LLC boosted its position in Oracle by 3,754.1% during the first quarter. Summit Trail Advisors LLC now owns 2,535,473 shares of the enterprise software provider’s stock worth $2,535,000 after purchasing an additional 2,469,687 shares in the last quarter. Ceredex Value Advisors LLC purchased a new position in Oracle during the first quarter worth approximately $111,727,000. Finally, Sumitomo Mitsui Asset Management Company LTD boosted its position in Oracle by 787.8% during the second quarter. Sumitomo Mitsui Asset Management Company LTD now owns 1,944,051 shares of the enterprise software provider’s stock worth $85,654,000 after purchasing an additional 1,725,077 shares in the last quarter. Institutional investors own 53.65% of the company’s stock.
Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure solutions for information technology (IT) environments worldwide. The company provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service.
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