Oracle (NYSE:ORCL) Trading Down 0.2% Following Weak Earnings

Oracle Co. (NYSE:ORCL)’s share price fell 0.2% on Monday following a weaker than expected earnings announcement. The stock traded as low as $190.55 and last traded at $191.35. 4,605,377 shares changed hands during trading, a decline of 44% from the average session volume of 8,237,305 shares. The stock had previously closed at $191.69.

The enterprise software provider reported $1.47 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.01). Oracle had a return on equity of 171.38% and a net margin of 20.40%. The company had revenue of $14.06 billion during the quarter, compared to analyst estimates of $14.12 billion. During the same quarter in the previous year, the business posted $1.34 earnings per share. The company’s revenue for the quarter was up 8.6% compared to the same quarter last year.

Oracle Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 23rd. Investors of record on Thursday, January 9th will be paid a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 0.90%. The ex-dividend date is Thursday, January 9th. Oracle’s dividend payout ratio (DPR) is currently 41.24%.

Analyst Upgrades and Downgrades

ORCL has been the subject of a number of research reports. Barclays raised their price objective on Oracle from $160.00 to $172.00 and gave the company an “overweight” rating in a research note on Tuesday, September 10th. Piper Sandler lifted their price target on shares of Oracle from $185.00 to $210.00 and gave the company an “overweight” rating in a research report on Tuesday. Bank of America upped their price objective on shares of Oracle from $155.00 to $175.00 and gave the stock a “neutral” rating in a report on Tuesday, September 10th. Melius upgraded shares of Oracle from a “hold” rating to a “buy” rating and set a $210.00 price objective for the company in a report on Monday, September 16th. Finally, Morgan Stanley upped their target price on shares of Oracle from $145.00 to $175.00 and gave the stock an “equal weight” rating in a report on Tuesday. Twelve equities research analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company’s stock. According to MarketBeat.com, Oracle currently has an average rating of “Moderate Buy” and a consensus price target of $181.48.

Insider Activity

In other news, EVP Maria Smith sold 6,320 shares of the stock in a transaction on Monday, September 16th. The shares were sold at an average price of $165.00, for a total value of $1,042,800.00. Following the transaction, the executive vice president now owns 42,889 shares of the company’s stock, valued at $7,076,685. This represents a 12.84 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders own 42.20% of the company’s stock.

Institutional Investors Weigh In On Oracle

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ORCL. Fairway Wealth LLC bought a new stake in shares of Oracle in the 2nd quarter worth approximately $27,000. POM Investment Strategies LLC purchased a new position in Oracle during the 2nd quarter valued at $30,000. Quest Partners LLC bought a new position in Oracle in the 2nd quarter worth $40,000. Reston Wealth Management LLC purchased a new position in shares of Oracle during the third quarter valued at about $44,000. Finally, Avondale Wealth Management purchased a new stake in Oracle in the third quarter worth about $51,000. 42.44% of the stock is currently owned by institutional investors.

Oracle Price Performance

The stock has a market cap of $492.28 billion, a PE ratio of 45.81, a P/E/G ratio of 3.49 and a beta of 1.03. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 6.68. The business has a fifty day simple moving average of $179.76 and a two-hundred day simple moving average of $154.67.

About Oracle

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.