Oracle (NYSE:ORCL) Trading 2.7% Higher – Still a Buy?

Oracle Corporation (NYSE:ORCL) rose 2.7% during trading on Thursday . The company traded as high as $149.07 and last traded at $144.27. Approximately 34,795,264 shares were traded during mid-day trading, an increase of 23% from the average daily volume of 28,235,590 shares. The stock had previously closed at $140.49.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle announced it is joining IMSA Labs as a founding partner and launching the Oracle Cloud Innovation Studio, a new program aimed at real-time data, edge computing, and advanced distributed systems. The partnership could showcase Oracle Cloud Infrastructure in a high-performance, mission-critical environment and help strengthen its enterprise cloud narrative. Oracle Launches Racing-Focused Cloud Innovation Studio
• Positive Sentiment: Several market articles and analyst comments framed Oracle as oversold and potentially undervalued after its selloff, with some saying the stock may rebound if investors focus on its AI infrastructure opportunity rather than near-term pressure. Stock Of The Day: Will Oracle Rebound?
• Positive Sentiment: Commentary from Jim Cramer and others highlighted Oracle’s future earnings potential and AI-related upside, reinforcing the view that the company’s long-term growth profile may be stronger than the market is pricing in. Jim Cramer Highlights Future Earnings Projections that Make Oracle Look Cheap
• Neutral Sentiment: Oracle’s partnership activity in healthcare AI and process automation suggests it is broadening its customer base and reducing reliance on any single growth driver, but these initiatives are still early-stage. Oracle’s Has An Enormous Backlog Concentration Risk. Here’s How Healthcare AI Push Could Help Diversify Away
• Negative Sentiment: Investors continue to worry about Oracle’s enormous AI backlog being concentrated among a few large customers, along with the need for substantial data-center spending before those contracts translate into cash flow. That remains a key reason the stock has been under pressure despite strong demand signals. Oracle’s record backlog is booming, so why is the stock down 50%?

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. DA Davidson boosted their price target on shares of Oracle from $200.00 to $225.00 and gave the company a “buy” rating in a research note on Thursday, June 11th. Arete Research set a $255.00 price objective on shares of Oracle and gave the stock a “buy” rating in a report on Thursday, May 7th. Monness Crespi & Hardt reaffirmed a “hold” rating on shares of Oracle in a research report on Wednesday, March 11th. Wolfe Research reiterated an “outperform” rating and issued a $225.00 target price on shares of Oracle in a report on Thursday, June 11th. Finally, Royal Bank Of Canada reissued a “sector perform” rating and issued a $190.00 target price on shares of Oracle in a research report on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $268.27.

Oracle Trading Up 2.7%

The company has a debt-to-equity ratio of 3.21, a current ratio of 1.12 and a quick ratio of 1.12. The firm has a market cap of $415.57 billion, a PE ratio of 24.75, a price-to-earnings-growth ratio of 0.89 and a beta of 1.72. The company’s 50 day moving average price is $183.97 and its 200 day moving average price is $172.42.

Oracle (NYSE:ORCL) last announced its earnings results on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, topping the consensus estimate of $1.96 by $0.15. The firm had revenue of $19.18 billion for the quarter, compared to the consensus estimate of $19.10 billion. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The firm’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.70 EPS. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. As a group, analysts forecast that Oracle Corporation will post 6.46 EPS for the current fiscal year.

Oracle Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a $0.50 dividend. The ex-dividend date is Friday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. Oracle’s payout ratio is 34.31%.

Insiders Place Their Bets

In related news, EVP Stuart Levey sold 15,000 shares of Oracle stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $176.19, for a total value of $2,642,850.00. Following the completion of the transaction, the executive vice president directly owned 3,429 shares in the company, valued at approximately $604,155.51. This trade represents a 81.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Vice Chairman Jeffrey Henley sold 400,000 shares of the business’s stock in a transaction 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 transaction, the insider directly owned 400,000 shares of the company’s stock, valued at $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Oracle

Several hedge funds and other institutional investors have recently made changes to their positions in ORCL. HFM Investment Advisors LLC lifted its stake in Oracle by 290.9% in the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock worth $25,000 after acquiring an additional 96 shares during the last quarter. Basepoint Wealth LLC purchased a new stake in shares of Oracle in the 4th quarter valued at approximately $26,000. FSA Wealth Management LLC purchased a new stake in shares of Oracle in the 3rd quarter valued at approximately $28,000. Osbon Capital Management LLC acquired a new stake in shares of Oracle in the 4th quarter valued at $28,000. Finally, Joseph Group Capital Management acquired a new stake in shares of Oracle in the 4th quarter valued at $29,000. Hedge funds and other institutional investors own 42.44% of the company’s stock.

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.