Oracle (ORCL) Reaches New 1-Year Low Following Analyst Downgrade

Oracle Co. (NYSE:ORCL) hit a new 52-week low during trading on Wednesday after Rosenblatt Securities downgraded the stock from a buy rating to a neutral rating. Rosenblatt Securities now has a $51.00 price target on the stock, down from their previous price target of $58.00. Oracle traded as low as $42.57 and last traded at $42.96, with a volume of 2509064 shares. The stock had previously closed at $44.55.

A number of other equities research analysts also recently issued reports on ORCL. Cleveland Research downgraded shares of Oracle from a “buy” rating to a “neutral” rating in a report on Tuesday, February 20th. OTR Global downgraded shares of Oracle to a “positive” rating in a report on Friday, March 9th. Barclays boosted their target price on shares of Oracle from $56.00 to $60.00 and gave the company an “overweight” rating in a report on Monday, March 12th. They noted that the move was a valuation call. Morgan Stanley restated a “buy” rating on shares of Oracle in a report on Sunday, March 18th. Finally, Stifel Nicolaus downgraded shares of Oracle from a “buy” rating to a “hold” rating and set a $53.00 target price for the company. in a report on Tuesday, March 20th. One investment analyst has rated the stock with a sell rating, nineteen have issued a hold rating and twenty have given a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $55.47.

In related news, insider Edward Screven sold 500,000 shares of the company’s stock in a transaction on Thursday, May 10th. The shares were sold at an average price of $46.89, for a total value of $23,445,000.00. Following the sale, the insider now directly owns 2,644,595 shares of the company’s stock, valued at $124,005,059.55. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Hector Garcia-Molina sold 3,750 shares of the company’s stock in a transaction on Friday, June 15th. The shares were sold at an average price of $46.17, for a total transaction of $173,137.50. Following the completion of the sale, the director now directly owns 27,969 shares in the company, valued at $1,291,328.73. The disclosure for this sale can be found here. Over the last three months, insiders have sold 2,557,015 shares of company stock worth $117,457,740. Corporate insiders own 29.00% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Two Sigma Advisers LP raised its holdings in Oracle by 738.5% in the fourth quarter. Two Sigma Advisers LP now owns 588,484 shares of the enterprise software provider’s stock valued at $27,824,000 after acquiring an additional 518,300 shares in the last quarter. Anchor Capital Advisors LLC bought a new stake in Oracle during the first quarter valued at $1,464,000. KLCM Advisors Inc. increased its stake in Oracle by 2.2% during the fourth quarter. KLCM Advisors Inc. now owns 339,272 shares of the enterprise software provider’s stock valued at $16,041,000 after purchasing an additional 7,229 shares during the last quarter. Allegis Investment Advisors LLC increased its stake in Oracle by 16.5% during the fourth quarter. Allegis Investment Advisors LLC now owns 51,031 shares of the enterprise software provider’s stock valued at $2,413,000 after purchasing an additional 7,231 shares during the last quarter. Finally, Wasatch Advisors Inc. increased its stake in Oracle by 38.6% during the fourth quarter. Wasatch Advisors Inc. now owns 220,792 shares of the enterprise software provider’s stock valued at $10,439,000 after purchasing an additional 61,530 shares during the last quarter. 56.24% of the stock is currently owned by hedge funds and other institutional investors.

The company has a debt-to-equity ratio of 1.16, a quick ratio of 4.30 and a current ratio of 4.33. The company has a market cap of $192.57 billion, a price-to-earnings ratio of 17.26, a price-to-earnings-growth ratio of 1.57 and a beta of 1.15.

Oracle (NYSE:ORCL) last released its earnings results on Tuesday, June 19th. The enterprise software provider reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.05. Oracle had a net margin of 9.25% and a return on equity of 21.77%. The firm had revenue of $11.26 billion during the quarter, compared to analyst estimates of $11.17 billion. During the same quarter in the previous year, the firm earned $0.89 earnings per share. The firm’s revenue for the quarter was up 2.9% compared to the same quarter last year. sell-side analysts expect that Oracle Co. will post 2.78 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 31st. Shareholders of record on Tuesday, July 17th will be paid a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 1.76%. Oracle’s payout ratio is 30.52%.

Oracle Company Profile

Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure technologies for information technology (IT) environments worldwide. It provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service.

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