Oracle (NYSE:ORCL) Stock Price Drops 1.5%: Should You Sell?

Shares of Oracle Corporation (NYSE:ORCL) experienced a decline of 1.5% during trading on Monday. The stock traded as low as $163.20 before ending the day at $167.55. In total, about 3,096,726 shares changed hands, marking a significant drop of 78% compared to the average daily volume of 14,343,751 shares. This decline followed a previous closing price of $170.06.

Analyst Opinions

Various research analysts have offered insights regarding Oracle's stock. UBS Group raised their target price for Oracle from $200.00 to $210.00, assigning a "buy" rating on December 10th. Similarly, Jefferies Financial Group increased their price target from $190.00 to $220.00, while Morgan Stanley adjusted their objective from $145.00 to $175.00, giving Oracle an "equal weight" rating. Evercore ISI also lifted their target from $190.00 to $200.00, categorizing the stock as "outperform." Additionally, Cantor Fitzgerald began its coverage on Oracle, indicating an "overweight" rating with a target of $214.00. Overall, the stock has one sell rating, ten hold ratings, eighteen buy ratings, and two strong buy ratings. As per MarketBeat.com, Oracle holds an average rating of "Moderate Buy" with a target price of $182.73.

Oracle's Stock Performance Overview

The stock has shown a 50-day simple moving average of $171.05, while the 200-day average stands at $164.00. With a market capitalization of $479.73 billion, the company exhibits a P/E ratio of 41.94 and a P/E/G ratio of 3.35. Oracle also has a beta of 1.05, suggesting a relatively stable stock performance compared to the market. The current financial health shows a quick ratio and current ratio of 0.81 and a debt-to-equity ratio of 5.65.

Quarterly Earnings Report

Oracle most recently released its quarterly earnings data on December 9th, reporting earnings per share (EPS) of $1.47, which fell short of analyst expectations of $1.48 by just $0.01. The return on equity for the company stood at an impressive 133.25% with a net margin of 21.16%. Revenue for the quarter was recorded at $14.06 billion, slightly lower than the anticipated $14.12 billion. Notably, revenue increased by 8.6% compared to the previous year, when Oracle posted an EPS of $1.34. Analysts forecast Oracle to achieve an EPS of 5 for the current year.

Dividend Details

The company announced a quarterly dividend, which was distributed on January 9th. Shareholders who recorded their holdings on January 23rd received a dividend of $0.40 per share, resulting in an annualized dividend of $1.60 and a yield of 0.93%. The current dividend payout ratio for Oracle stands at 39.12%.

Insider Activity

Recent insider trading activity includes CEO Safra Catz selling 2,101,154 shares on January 22nd. The shares were sold at an average price of $185.35, totaling nearly $389.45 million. Following this transaction, Catz retains ownership of 1,118,592 shares, valued at around $207.33 million, indicating a significant reduction of 65.26% in her shareholding. This transaction was duly filed with the Securities & Exchange Commission (SEC) and is accessible for public viewing. Insiders currently own 42.20% of Oracle's stock.

Institutional Investments

Recently, several institutional and hedge funds have adjusted their stakes in Oracle. R Squared Ltd acquired a new position in Oracle valued at $25,000 in the last quarter. Winch Advisory Services LLC increased their holdings by 89.7%, owning 184 shares after acquiring additional shares. TFC Financial Management Inc. boosted their position by 129%, now holding 213 shares. Other firms, like Reston Wealth Management LLC and Synergy Asset Management LLC, also purchased new stakes recently. Institutional investors collectively own 42.44% of Oracle's equity.

About Oracle Corporation

Oracle is a global leader in offering products and services that cater to enterprise information technology requirements. Their offerings span a range of cloud software applications, including Oracle Fusion for enterprise resource planning (ERP), performance management, supply chain management, human capital management, and additional applications related to healthcare and advertising.

Conclusion

With ongoing market fluctuations and changes in Oracle's stock performance, investors are faced with critical questions regarding their positions. Given the mixed signals from analysts and institutional investors, individuals will have to weigh the potential risks and rewards as they consider whether to hold or sell their shares in Oracle.

Oracle, Stocks, Market