Oracle (NYSE:ORCL) Shares Down 7.8% After Earnings Miss

Oracle Co. (NYSE:ORCL) traded down 7.8% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $171.06 and last traded at $175.61. 12,076,645 shares changed hands during trading, an increase of 45% from the average session volume of 8,316,787 shares. The stock had previously closed at $190.45.

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

Oracle Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 9th. Shareholders of record on Thursday, January 23rd will be paid a dividend of $0.40 per share. The ex-dividend date is Thursday, January 9th. This represents a $1.60 annualized dividend and a yield of 0.90%. Oracle’s dividend payout ratio is 41.24%.

Analyst Ratings Changes

Several analysts have commented on ORCL shares. Piper Sandler increased their target price on Oracle from $185.00 to $210.00 and gave the company an “overweight” rating in a research note on Tuesday. Melius Research upgraded Oracle from a “hold” rating to a “buy” rating in a research note on Monday, September 16th. Stifel Nicolaus increased their price target on Oracle from $155.00 to $175.00 and gave the company a “hold” rating in a report on Tuesday. KeyCorp increased their price target on Oracle from $190.00 to $200.00 and gave the company an “overweight” rating in a report on Friday, November 15th. Finally, UBS Group increased their price target on Oracle from $200.00 to $210.00 and gave the company a “buy” rating in a report on Tuesday. Twelve research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $181.48.

Insider Buying and Selling at Oracle

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

Institutional Investors Weigh In On Oracle

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Activest Wealth Management raised its holdings in Oracle by 21.9% during the third quarter. Activest Wealth Management now owns 312 shares of the enterprise software provider’s stock valued at $53,000 after acquiring an additional 56 shares during the period. Second Line Capital LLC raised its holdings in Oracle by 1.5% during the third quarter. Second Line Capital LLC now owns 3,816 shares of the enterprise software provider’s stock valued at $650,000 after acquiring an additional 58 shares during the period. Cadence Bank grew its position in shares of Oracle by 0.8% during the third quarter. Cadence Bank now owns 7,605 shares of the enterprise software provider’s stock valued at $1,296,000 after purchasing an additional 59 shares in the last quarter. Eagle Rock Investment Company LLC grew its position in shares of Oracle by 0.4% during the third quarter. Eagle Rock Investment Company LLC now owns 17,626 shares of the enterprise software provider’s stock valued at $3,003,000 after purchasing an additional 64 shares in the last quarter. Finally, W Advisors LLC grew its position in shares of Oracle by 3.1% during the third quarter. W Advisors LLC now owns 2,158 shares of the enterprise software provider’s stock valued at $368,000 after purchasing an additional 64 shares in the last quarter. 42.44% of the stock is owned by institutional investors.

Oracle Trading Up 0.5 %

The stock has a market cap of $494.86 billion, a PE ratio of 46.06, a price-to-earnings-growth ratio of 3.49 and a beta of 1.03. The stock has a 50-day moving average price of $179.97 and a two-hundred day moving average price of $155.06. The company has a debt-to-equity ratio of 6.68, a current ratio of 0.72 and a quick ratio of 0.72.

Oracle Company Profile

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.