Oracle (NYSE:ORCL) Shares Down 6.5% – Time to Sell?

by · The Markets Daily

Oracle Corporation (NYSE:ORCL – Get Free Report)’s stock price dropped 6.5% during trading on Friday. The stock traded as low as $129.00 and last traded at $130.50. Approximately 39,950,013 shares traded hands during trading, an increase of 34% from the average session volume of 29,733,629 shares. The stock had previously closed at $139.56.

Oracle News Roundup

Here are the key news stories impacting Oracle this week:

  • Positive Sentiment: Oracle’s investor-day outlook remains the main bullish catalyst. Management is targeting at least $225 billion in fiscal 2030 revenue, approximately $21 in fiscal 2030 EPS, and $30 billion in free cash flow by fiscal 2029. The company also reported exceptionally strong AI bookings and cloud backlog growth, suggesting demand for its AI infrastructure remains robust. Oracle Stock Forecast – Analysts React to Strong FY30 Outlook
  • Positive Sentiment: Oracle pledged to limit additional capital-market funding to approximately $20 billion through fiscal 2030, addressing concerns that its data-center expansion could require unrestrained borrowing and share issuance. Analysts including Bank of America, TD Cowen, and Piper Sandler have maintained bullish ratings and substantial price targets. Oracle Analyst Day Eases Funding Concerns
  • Neutral Sentiment: Fiscal 2027 guidance calls for $8.10 EPS, ahead of the $7.86 consensus, but the $90 billion revenue forecast is slightly below the $90.4 billion analyst estimate. This leaves investors focused on whether AI bookings convert into reported revenue and cash flow over the next two quarters. Oracle Just Told Investors What Many Already Knew
  • Negative Sentiment: Oracle’s AI expansion has produced deeply negative free cash flow and required roughly $48 billion of debt and equity funding in fiscal 2026. Investors remain skeptical that the projected cash-flow turnaround will arrive quickly enough, particularly given Oracle’s debt-to-equity ratio of 1.89. Oracle Caps New Capital Raising
  • Negative Sentiment: Broader technology weakness and concerns about lower-than-expected big-tech capital spending have pressured AI infrastructure stocks. Microsoft CEO Satya Nadella’s criticism of businesses dependent on leasing AI capacity to a small number of customers also raised questions about Oracle’s customer concentration and infrastructure economics. Satya Nadella Criticizes AI Capacity Rental Models

Analyst Ratings Changes

Several equities analysts recently weighed in on ORCL shares. Freedom Broker dropped their price target on shares of Oracle from $210.00 to $205.00 and set a “buy” rating on the stock in a research report on Monday, September 14th. Robert W. Baird set a $215.00 price target on Oracle in a research note on Thursday. Wells Fargo & Company decreased their price objective on Oracle from $280.00 to $250.00 and set an “overweight” rating for the company in a report on Monday, October 26th. JPMorgan Chase & Co. reissued a “buy” rating on shares of Oracle in a research note on Thursday, September 10th. Finally, President Capital dropped their target price on Oracle from $360.00 to $300.00 and set an “overweight” rating on the stock in a report on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $248.41.

Read Our Latest Report on ORCL

Oracle Stock Performance

The company’s fifty day moving average price is $141.81 and its 200 day moving average price is $157.19. The company has a market cap of $394.60 billion, a PE ratio of 20.45, a P/E/G ratio of 0.92 and a beta of 1.78. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.17 and a quick ratio of 1.17.

Oracle (NYSE:ORCL – Get Free Report) last released its quarterly earnings results on Thursday, September 10th. The enterprise software provider reported $1.92 earnings per share for the quarter, beating analysts’ consensus estimates of $1.74 by $0.18. Oracle had a net margin of 26.36% and a return on equity of 48.85%. The company had revenue of $19.34 billion for the quarter, compared to analyst estimates of $19.13 billion. During the same period last year, the firm earned $1.47 earnings per share. The firm’s 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. On average, equities research analysts predict that Oracle Corporation will post 6.72 earnings per share for the current year.

Oracle Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 9th were given a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, October 9th. This represents a $2.00 annualized dividend and a dividend yield of 1.5%. Oracle’s dividend payout ratio (DPR) is currently 31.35%.

Insider Transactions at Oracle

In other Oracle news, Director Stephen Rusckowski bought 25,000 shares of the business’s stock in a transaction dated Tuesday, September 29th. The shares were purchased at an average price of $139.35 per share, for a total transaction of $3,483,750.00. Following the purchase, the director directly owned 25,390 shares of the company’s stock, valued at approximately $3,538,096.50. This represents a 6,410.26% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Maria Smith sold 2,631 shares of the company’s stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $151.70, for a total value of $399,122.70. Following the completion of the transaction, the executive vice president directly owned 64,357 shares of the company’s stock, valued at approximately $9,762,956.90. This represents a 3.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 36,075 shares of company stock worth $5,342,123 in the last 90 days. Insiders own 38.40% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Oracle by 0.8% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 14,680,278 shares of the enterprise software provider’s stock valued at $2,151,395,000 after buying an additional 123,294 shares during the last quarter. Bank of New York Mellon Corp increased its holdings in Oracle by 3.0% in the 1st quarter. Bank of New York Mellon Corp now owns 13,251,059 shares of the enterprise software provider’s stock worth $1,949,363,000 after buying an additional 384,984 shares in the last quarter. Amundi raised its position in Oracle by 1.5% in the 2nd quarter. Amundi now owns 9,878,184 shares of the enterprise software provider’s stock worth $1,447,648,000 after buying an additional 144,087 shares during the last quarter. Dimensional Fund Advisors LP raised its position in Oracle by 1.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 8,586,492 shares of the enterprise software provider’s stock worth $1,262,827,000 after buying an additional 147,048 shares during the last quarter. Finally, First Eagle Investment Management LLC raised its position in Oracle by 1.0% in the 2nd quarter. First Eagle Investment Management LLC now owns 8,516,878 shares of the enterprise software provider’s stock worth $1,248,148,000 after buying an additional 81,700 shares during the last quarter. Hedge funds and other institutional investors own 42.44% of the company’s stock.

About Oracle

(Get Free Report)

Oracle Corporation (NYSE: ORCL) is a global technology company that develops enterprise software, cloud infrastructure and database technologies. Its products help organizations store, manage, analyze and secure data, while supporting business operations across industries and geographies.

The company’s offerings include Oracle Database, Java, Oracle Cloud Infrastructure and a broad portfolio of cloud-based applications. These applications serve functions such as enterprise resource planning, financial management, human resources, supply-chain management, customer experience and industry-specific operations.

Further Reading