Shares of Oracle Corporation (NYSE:ORCL) climbed by 3.2% on Thursday, October 9, 2023, following an upgrade from Wells Fargo & Company, which raised the stock’s rating to a strong buy. The share price peaked at $215.41 before settling at $214.32, significantly above its previous closing price of $207.73. This increase occurred amid a robust trading volume, with approximately 22,926,196 shares exchanging hands, a marked increase of 42% compared to the average daily volume of 16,119,557 shares.
Several other financial institutions have recently provided insights on Oracle’s stock performance. On November 10, Erste Group Bank downgraded Oracle from a buy to a hold rating. Meanwhile, JPMorgan Chase & Co. raised their price target from $185.00 to $210.00 while maintaining a neutral rating, as detailed in their report dated September 8. Scotiabank increased their price objective from $350.00 to $360.00 and rated the stock as outperform on October 17. The same day, Jefferies Financial Group lifted their target price from $360.00 to $400.00 with a buy rating, while Piper Sandler also raised their target from $330.00 to $380.00 and issued an overweight rating.
Analysts have generally shown optimism towards Oracle, with four giving it a strong buy rating, 27 assigning a buy, 11 issuing a hold, and two recommending a sell. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $322.73.
Institutional Investors Adjust Holdings
Recent shifts in institutional holdings reflect growing interest in Oracle. Winnow Wealth LLC acquired a new position valued at $28,000 in the second quarter. Similarly, FSA Wealth Management LLC and Kilter Group LLC both established new stakes, each valued around $30,000. Additionally, Darwin Wealth Management LLC increased its position by 130% in the third quarter, now holding 115 shares worth $32,000 after adding 65 shares during this period. Furthermore, Mpwm Advisory Solutions LLC raised its stake by 76.9%, also owning 115 shares valued at $32,000 after purchasing 50 additional shares.
A noteworthy 42.44% of Oracle’s stock is currently held by hedge funds and other institutional investors, indicating a strong institutional interest in the enterprise software provider.
Financial Performance and Future Prospects
Oracle’s financial indicators demonstrate a solid position in the market. The company has a current ratio of 0.62, a quick ratio of 0.62, and a debt-to-equity ratio of 3.33. Its market capitalization stands at $621.59 billion, with a price-to-earnings (P/E) ratio of 50.47 and a P/E growth (P/E/G) ratio of 2.43. The company’s beta is recorded at 1.66, suggesting higher volatility compared to the broader market.
On September 9, Oracle reported its latest earnings, revealing earnings per share (EPS) of $1.47, which narrowly missed the consensus estimate of $1.48 by $0.01. The company recorded a net margin of 21.08% and a return on equity of 72.93%, with revenue of $14.93 billion for the quarter, slightly below the consensus estimate of $15.04 billion. This represented a year-over-year revenue increase of 12.2%. For the second quarter of 2026, Oracle has set a guidance range of $1.270 to $1.310 EPS.
In terms of returns to shareholders, Oracle recently announced a quarterly dividend of $0.50, paid on October 23, 2023, to stockholders of record as of October 9. This equates to an annualized dividend of $2.00 and a yield of 0.9%. The company’s payout ratio currently stands at 46.30%.
Oracle Corporation continues to provide diverse products and services tailored to enterprise information technology environments globally. Its offerings include cloud software applications such as Oracle Fusion cloud enterprise resource planning, healthcare solutions through Oracle Cerner, and various marketing and advertising services.
As Oracle navigates the evolving landscape of enterprise technology, the recent analyst upgrades and positive institutional investor interest may signal a promising outlook for the company in the coming months.
