Oracle Corporation (NYSE:ORCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.
According to Zacks, “Oracle is in the middle of a business transition from on-premise licensing to cloud-based business model, which will be accretive to long term growth. However, it is a drag on the financials at present. Adding to that, Oracle seems to have hit a bad patch as far as litigation is concerned. The renewed fight over Android with Google will remain an overhang on the stock. In fact, we note that Oracle has underperformed the broader market in the last one-year. Nevertheless, the ongoing momentum at SaaS and PaaS provides signficant growth opportunity. The introduction of Generation2 IaaS data centers are expected to improve Oracle’s competitive prowess against Amazon Web Services and will drive market share going ahead. Moreover, the comany's decision to fine commercial users of Java SE augurs well for topline growth in the future. “
ORCL has been the subject of a number of other research reports. BTIG Research reaffirmed a “buy” rating and issued a $47.00 price target on shares of Oracle Corporation in a report on Sunday, December 4th. DA Davidson set a $52.00 price target on shares of Oracle Corporation and gave the stock a “buy” rating in a report on Tuesday, November 22nd. reaffirmed an “underperform” rating and issued a $42.00 price target on shares of Oracle Corporation in a report on Tuesday, November 8th. Vetr raised shares of Oracle Corporation from a “hold” rating to a “buy” rating and set a $42.92 price target for the company in a report on Monday, November 28th. Finally, Raymond James Financial, Inc. reaffirmed an “outperform” rating on shares of Oracle Corporation in a report on Monday, December 19th. Four investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, twenty-seven have given a buy rating and one has given a strong buy rating to the company. Oracle Corporation has an average rating of “Buy” and an average price target of $44.19.
Shares of Oracle Corporation (NYSE:ORCL) opened at 41.10 on Wednesday. Oracle Corporation has a 12 month low of $35.77 and a 12 month high of $42.00. The stock’s 50 day moving average is $39.59 and its 200-day moving average is $39.72. The company has a market cap of $168.61 billion, a P/E ratio of 19.62 and a beta of 1.14.
Oracle Corporation (NYSE:ORCL) last announced its earnings results on Thursday, December 15th. The enterprise software provider reported $0.61 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.60 by $0.01. The company earned $9.07 billion during the quarter. Oracle Corporation had a net margin of 23.69% and a return on equity of 21.33%. Oracle Corporation’s revenue was up .5% on a year-over-year basis. During the same quarter last year, the business earned $0.63 earnings per share. On average, equities analysts forecast that Oracle Corporation will post $2.56 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Thursday, January 26th. Stockholders of record on Thursday, January 5th were paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.46%. The ex-dividend date was Tuesday, January 3rd. Oracle Corporation’s dividend payout ratio (DPR) is 28.99%.
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In other news, Director Naomi O. Seligman sold 45,000 shares of the business’s stock in a transaction that occurred on Wednesday, December 21st. The shares were sold at an average price of $38.72, for a total value of $1,742,400.00. Following the sale, the director now directly owns 52,654 shares of the company’s stock, valued at approximately $2,038,762.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Hector Garcia-Molina sold 3,750 shares of the business’s stock in a transaction that occurred on Tuesday, January 17th. The shares were sold at an average price of $39.09, for a total transaction of $146,587.50. Following the completion of the sale, the director now directly owns 8,281 shares in the company, valued at $323,704.29. The disclosure for this sale can be found here. Insiders sold a total of 52,500 shares of company stock worth $2,042,175 over the last three months. Insiders own 29.00% of the company’s stock.
Several large investors have recently added to or reduced their stakes in ORCL. Savant Capital LLC increased its stake in Oracle Corporation by 3.3% in the second quarter. Savant Capital LLC now owns 15,249 shares of the enterprise software provider’s stock worth $624,000 after buying an additional 490 shares during the period. Quadrant Capital Group LLC increased its stake in shares of Oracle Corporation by 1.9% in the second quarter. Quadrant Capital Group LLC now owns 17,696 shares of the enterprise software provider’s stock valued at $715,000 after buying an additional 323 shares during the last quarter. Mar Vista Investment Partners LLC increased its stake in shares of Oracle Corporation by 6.3% in the second quarter. Mar Vista Investment Partners LLC now owns 1,313,127 shares of the enterprise software provider’s stock valued at $53,746,000 after buying an additional 78,202 shares during the last quarter. Whittier Trust Co. increased its stake in shares of Oracle Corporation by 0.6% in the second quarter. Whittier Trust Co. now owns 433,230 shares of the enterprise software provider’s stock valued at $17,732,000 after buying an additional 2,614 shares during the last quarter. Finally, Whittier Trust Co. of Nevada Inc. increased its stake in shares of Oracle Corporation by 1.1% in the second quarter. Whittier Trust Co. of Nevada Inc. now owns 149,916 shares of the enterprise software provider’s stock valued at $6,136,000 after buying an additional 1,688 shares during the last quarter. 57.95% of the stock is currently owned by institutional investors and hedge funds.
About Oracle Corporation
Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support.
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