Oracle Corporation (NYSE: ORCL) saw its stock price increase by 2.2% during mid-day trading on October 10, 2023. The shares peaked at $228.15 before closing at $225.39. Trading volume for the day reached approximately 20,578,928 shares, marking a significant 31% increase from the average daily volume of 15,720,693 shares. The stock had previously closed at $220.49.
Analysts have recently been active in adjusting their forecasts for Oracle, signaling increased confidence in the company’s future performance. Melius Research raised their target price from $270.00 to $370.00 and assigned a “buy” rating. Similarly, Evercore ISI increased its target from $350.00 to $385.00 and designated the stock as “outperform.”
In contrast, Rothschild & Co Redburn initiated coverage with a “sell” rating and a price target of $175.00. Mizuho adjusted its target price from $300.00 to $350.00 with an “outperform” rating, while Stephens raised its target from $208.00 to $331.00, maintaining an “equal weight” rating. Overall, three analysts rated Oracle as a Strong Buy, twenty-seven issued Buy ratings, ten recommended Hold, and two suggested Sell. The average rating stands at “Moderate Buy” with a consensus price target of $322.26, according to MarketBeat.com.
Recent Earnings and Dividend Announcement
Oracle’s most recent earnings report, released on September 9, 2023, revealed an earnings per share (EPS) of $1.47, slightly below the consensus estimate of $1.48. The company achieved a revenue of $14.93 billion, falling short of the expected $15.04 billion. Despite the miss, the quarterly revenue represented a year-over-year increase of 12.2%. Oracle has provided guidance for Q2 2026, projecting an EPS range of 1.270-1.310.
In addition to earnings, Oracle announced a quarterly dividend of $0.50, which was paid on October 23, 2023. Shareholders of record on October 9, 2023, received this dividend, which translates to an annualized amount of $2.00 and a yield of 0.9%. The company’s dividend payout ratio currently stands at 46.30%.
Insider Trading Activity
Recent insider trading activity at Oracle has also garnered attention. Executive Vice President Stuart Levey sold 19,758 shares on October 10, 2023, at an average price of $300.00, totaling $5,927,400.00. Following this transaction, Levey holds 18,429 shares valued at approximately $5,528,700, reflecting a decrease of 51.74% in ownership.
Additionally, Director Naomi O. Seligman sold 2,222 shares on September 26, 2023, at an average price of $288.91, amounting to $641,958.02. Her remaining 29,225 shares are valued at about $8,443,394.75, representing a 7.07% reduction in her position. Over the past 90 days, insiders have sold a total of 204,254 shares worth $60,227,807. Currently, insiders hold 40.90% of the company’s stock.
Institutional investors have also been active, with hedge funds adjusting their stakes in Oracle. Kampmann Melissa S. increased its holdings by 0.3% in the third quarter, now owning 11,910 shares valued at $3,350,000. McLean Asset Management Corp expanded its stake by 0.7%, holding 5,319 shares worth $1,551,000. Other firms, including Mine & Arao Wealth Creation & Management LLC and Voisard Asset Management Group Inc., also reported modest increases in their shareholdings. Overall, institutional investors own 42.44% of Oracle’s stock.
As Oracle continues to navigate a competitive landscape, these developments reflect both market optimism and strategic adjustments within the company.
