Oracle’s (ORCL) Buy Rating Reiterated at DA Davidson

DA Davidson restated their buy rating on shares of Oracle (NYSE:ORCL) in a report issued on Friday,Benzinga reports. DA Davidson currently has a $225.00 price objective on the enterprise software provider’s stock.

Other analysts have also recently issued reports about the company. Mizuho set a $320.00 price target on Oracle in a research note on Wednesday, June 3rd. Citizens Jmp reissued a “market outperform” rating and set a $285.00 price objective on shares of Oracle in a research note on Wednesday, September 9th. Wedbush decreased their price objective on shares of Oracle from $275.00 to $240.00 and set an “outperform” rating for the company in a report on Thursday, June 11th. Morgan Stanley upped their target price on shares of Oracle from $207.00 to $210.00 and gave the company an “equal weight” rating in a research note on Friday, September 4th. Finally, Scotiabank cut their target price on shares of Oracle from $241.00 to $215.00 and set a “sector outperform” rating on the stock in a report on Wednesday, September 9th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $256.05.

Oracle Stock Down 0.1%

Shares of Oracle stock opened at $150.13 on Friday. The business has a fifty day simple moving average of $141.08 and a 200 day simple moving average of $160.52. The stock has a market cap of $432.45 billion, a PE ratio of 23.53, a price-to-earnings-growth ratio of 1.10 and a beta of 1.74. The company has a quick ratio of 1.12, a current ratio of 1.17 and a debt-to-equity ratio of 1.75. Oracle has a 12 month low of $114.50 and a 12 month high of $329.50.

Oracle (NYSE:ORCL) last released its earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, beating the consensus estimate of $1.74 by $0.18. Oracle had a return on equity of 47.43% and a net margin of 26.36%.The firm had revenue of $19.34 billion for the quarter, compared to analyst estimates of $19.13 billion. During the same quarter in the prior year, the firm posted $1.47 earnings per share. The company’s quarterly revenue was up 29.6% on a year-over-year basis. Oracle has set its Q2 2027 guidance at 1.850-1.930 EPS and its FY 2027 guidance at 8.100-8.100 EPS. Research analysts predict that Oracle will post 6.6 EPS for the current year.

Oracle Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be paid 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 is Friday, October 9th. Oracle’s dividend payout ratio is presently 31.35%.

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

Institutional Investors Weigh In On Oracle

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. HFM Investment Advisors LLC increased its holdings in Oracle by 290.9% during the 4th quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock worth $25,000 after purchasing an additional 96 shares in the last quarter. Basepoint Wealth LLC bought a new stake in shares of Oracle in the fourth quarter valued at about $26,000. FSA Wealth Management LLC bought a new stake in shares of Oracle in the third quarter valued at about $28,000. Osbon Capital Management LLC acquired a new position in shares of Oracle during the fourth quarter worth about $28,000. Finally, Basso Capital Management L.P. bought a new position in shares of Oracle during the fourth quarter worth about $29,000. 42.44% of the stock is currently owned by institutional investors and hedge funds.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle reported adjusted EPS of $1.92 versus the $1.74 consensus estimate, while revenue rose 29.6% year over year to approximately $19.35 billion, beating expectations. Surging cloud revenue boosted Oracle’s quarterly results
• Positive Sentiment: Cloud infrastructure revenue surged 121% to about $7.4 billion, and remaining performance obligations reached a record $664 billion. AI infrastructure contracts reportedly exceed $30 billion, providing substantial revenue visibility. Oracle Q1 Earnings Beat Estimates, Cloud Growth Accelerates
• Positive Sentiment: Management raised its fiscal 2027 outlook to at least $90 billion in revenue and $8.10 in adjusted EPS. Analysts also noted that expiring AI contracts are renewing at prices roughly 20% higher, suggesting durable demand for Oracle’s computing capacity. Oracle Says Its Expiring AI Contracts Are Renewing 20% Higher
• Neutral Sentiment: Analyst reactions remain broadly constructive, with several firms reiterating Buy or Outperform ratings, although some price targets were reduced to reflect valuation and financing risks.
• Negative Sentiment: Oracle is maintaining capital expenditures of roughly $90 billion to $95 billion for fiscal 2027. Free cash flow remained negative, and investors are concerned that debt and equity financing could delay the payoff from its AI investments. Oracle Nearly Erases 7% Jump Despite $664 Billion AI Backlog
• Negative Sentiment: Execution risks persist: a New Mexico data-center project has faced delays, and Oracle’s profitability and efficiency have not yet fully reflected the scale of its AI demand.

About Oracle

Oracle Corporation is a global enterprise technology company that develops and provides database software, cloud infrastructure, business applications and related technology services. Its offerings help organizations manage data, run applications, support business operations and build technology environments across on-premises, hybrid and cloud-based settings.

The company’s products include Oracle Database, MySQL, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud applications for enterprise resource planning, financial management, human resources, supply chain management, customer experience and industry-specific operations.