Oracle (NYSE:ORCL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday. The brokerage currently has a $53.00 target price on the enterprise software provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 16.13% from the company’s current price.
According to Zacks, “Oracle is benefiting from strong adoption of its cloud-based solutions. Both earnings and revenues increased on a year-over-year basis in the third-quarter fiscal 2018. However, management provided soft outlook for the cloud business, which will remain an overhang on the shares in the near term. Nevertheless, we believe that the company’s growing cloud market share will continue to drive top-line growth in the long haul. We note that partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele. Moreover, this has helped in improving the company's competitive position against the likes of salesforce.com and Workday. Moreover, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS. However, higher investments on IaaS platform will affect gross margin expansion in the near term.”
Other analysts have also issued research reports about the company. Wedbush restated a “buy” rating and issued a $58.00 price objective on shares of Oracle in a research note on Friday, December 15th. Goldman Sachs set a $58.00 price objective on Oracle and gave the company a “buy” rating in a research note on Friday, December 15th. Canaccord Genuity dropped their price objective on Oracle from $57.00 to $53.00 and set a “buy” rating on the stock in a research note on Friday, December 15th. Jefferies Group set a $61.00 price objective on Oracle and gave the company a “buy” rating in a research note on Friday, December 15th. Finally, JPMorgan Chase & Co. set a $55.00 price objective on Oracle and gave the company a “buy” rating in a research note on Tuesday, December 12th. Fifteen research analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the stock. Oracle has a consensus rating of “Buy” and an average price target of $56.11.
Shares of Oracle (NYSE:ORCL) traded down $0.25 during midday trading on Friday, reaching $45.64. The company had a trading volume of 3,141,685 shares, compared to its average volume of 17,153,875. Oracle has a 1 year low of $43.60 and a 1 year high of $53.48. The company has a quick ratio of 5.04, a current ratio of 4.33 and a debt-to-equity ratio of 1.16. The firm has a market capitalization of $194,644.09, a PE ratio of 55.68, a PEG ratio of 1.78 and a beta of 1.05.
Oracle (NYSE:ORCL) last issued its quarterly earnings results on Monday, March 19th. The enterprise software provider reported $0.83 EPS for the quarter, beating the consensus estimate of $0.72 by $0.11. The firm had revenue of $9.78 billion during the quarter, compared to analysts’ expectations of $9.77 billion. Oracle had a return on equity of 21.77% and a net margin of 9.25%. The business’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.69 earnings per share. sell-side analysts forecast that Oracle will post 2.7 earnings per share for the current fiscal year.
Oracle announced that its Board of Directors has authorized a share buyback plan on Thursday, December 14th that allows the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization allows the enterprise software provider to buy shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.
In other Oracle news, Director Hector Garcia-Molina sold 3,750 shares of the firm’s stock in a transaction on Tuesday, January 16th. The stock was sold at an average price of $49.72, for a total value of $186,450.00. Following the sale, the director now owns 18,125 shares of the company’s stock, valued at approximately $901,175. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Thomas Kurian sold 1,700,000 shares of the firm’s stock in a transaction on Thursday, January 18th. The shares were sold at an average price of $50.29, for a total value of $85,493,000.00. Following the completion of the sale, the insider now directly owns 1,522,983 shares in the company, valued at approximately $76,590,815.07. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,856,250 shares of company stock worth $93,571,688. Company insiders own 29.00% of the company’s stock.
Several hedge funds have recently modified their holdings of the business. Acrospire Investment Management LLC raised its position in Oracle by 947.4% during the 2nd quarter. Acrospire Investment Management LLC now owns 1,990 shares of the enterprise software provider’s stock worth $100,000 after purchasing an additional 1,800 shares during the last quarter. Tarbox Family Office Inc. raised its position in Oracle by 71.1% during the 4th quarter. Tarbox Family Office Inc. now owns 2,322 shares of the enterprise software provider’s stock worth $110,000 after purchasing an additional 965 shares during the last quarter. IHT Wealth Management LLC raised its position in Oracle by 65.9% during the 2nd quarter. IHT Wealth Management LLC now owns 2,383 shares of the enterprise software provider’s stock worth $154,000 after purchasing an additional 947 shares during the last quarter. Wealthcare Advisory Partners LLC raised its position in Oracle by 81,200.0% during the 3rd quarter. Wealthcare Advisory Partners LLC now owns 2,439 shares of the enterprise software provider’s stock worth $118,000 after purchasing an additional 2,436 shares during the last quarter. Finally, ETF Managers Group LLC bought a new position in Oracle during the 2nd quarter worth $133,000. 57.93% of the stock is currently owned by hedge funds and other institutional investors.
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Oracle Company Profile
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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