Oracle (NYSE:ORCL) Shares Down 4.9% – Here’s Why

Oracle Co. (NYSE:ORCL)’s stock price traded down 4.9% on Tuesday . The company traded as low as $153.52 and last traded at $154.15. 4,008,514 shares were traded during trading, a decline of 65% from the average session volume of 11,465,218 shares. The stock had previously closed at $162.02.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Cantor Fitzgerald downgraded shares of Oracle to an “overweight” rating in a research report on Monday, February 10th. Guggenheim boosted their target price on shares of Oracle from $200.00 to $220.00 and gave the company a “buy” rating in a report on Thursday, December 5th. Royal Bank of Canada reiterated a “sector perform” rating and set a $165.00 price target on shares of Oracle in a report on Thursday, December 5th. BNP Paribas upgraded Oracle to a “strong-buy” rating in a research report on Tuesday, December 10th. Finally, JMP Securities restated a “market outperform” rating and set a $205.00 price target on shares of Oracle in a report on Wednesday, January 22nd. Twelve equities research analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $182.73.

Oracle Price Performance

The business’s 50-day simple moving average is $168.79 and its two-hundred day simple moving average is $169.01. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 5.65. The stock has a market cap of $439.78 billion, a P/E ratio of 38.44, a price-to-earnings-growth ratio of 3.46 and a beta of 1.05.

Oracle (NYSE:ORCL) last released its quarterly earnings data on Monday, December 9th. The enterprise software provider reported $1.47 earnings per share for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.01). Oracle had a net margin of 21.16% and a return on equity of 133.25%. The business had revenue of $14.06 billion during the quarter, compared to analysts’ expectations of $14.12 billion. During the same quarter in the prior year, the firm posted $1.34 earnings per share. The firm’s quarterly revenue was up 8.6% on a year-over-year basis. Sell-side analysts expect that Oracle Co. will post 5 EPS for the current year.

Oracle Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, January 9th. Stockholders of record on Thursday, January 23rd were given a dividend of $0.40 per share. The ex-dividend date of this dividend was Friday, January 10th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.02%. Oracle’s dividend payout ratio (DPR) is currently 39.12%.

Insider Buying and Selling

In related news, CEO Safra Catz sold 345,174 shares of the firm’s stock in a transaction dated Friday, January 24th. The stock was sold at an average price of $185.56, for a total value of $64,050,487.44. Following the sale, the chief executive officer now directly owns 1,118,592 shares of the company’s stock, valued at $207,565,931.52. This trade represents a 23.58 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 42.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. R Squared Ltd purchased a new stake in Oracle during the fourth quarter valued at $25,000. Sunbeam Capital Management LLC bought a new position in shares of Oracle in the 4th quarter worth approximately $30,000. Winch Advisory Services LLC boosted its holdings in shares of Oracle by 89.7% in the fourth quarter. Winch Advisory Services LLC now owns 184 shares of the enterprise software provider’s stock worth $31,000 after buying an additional 87 shares during the last quarter. Hurley Capital LLC purchased a new stake in Oracle during the fourth quarter valued at approximately $33,000. Finally, Synergy Investment Management LLC bought a new position in shares of Oracle during the 4th quarter valued at approximately $34,000. Hedge funds and other institutional investors own 42.44% of the company’s stock.

Oracle Company Profile

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing.