Oracle (NYSE:ORCL) Shares Gap Down After Earnings Miss

Oracle Co. (NYSE:ORCL) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $148.79, but opened at $143.42. Oracle shares last traded at $143.58, with a volume of 4,430,682 shares changing hands.

The enterprise software provider reported $1.47 earnings per share for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.02). The firm had revenue of $14.13 billion during the quarter, compared to analyst estimates of $14.40 billion. Oracle had a return on equity of 133.25% and a net margin of 21.16%. The firm’s revenue was up 6.4% on a year-over-year basis. During the same period last year, the business earned $1.41 EPS.

Oracle Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 23rd. Shareholders of record on Thursday, April 10th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.39%. The ex-dividend date of this dividend is Thursday, April 10th. This is a positive change from Oracle’s previous quarterly dividend of $0.40. Oracle’s payout ratio is 39.12%.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on ORCL. KeyCorp reaffirmed an “overweight” rating and issued a $200.00 price target on shares of Oracle in a research note on Tuesday. Jefferies Financial Group upped their target price on Oracle from $190.00 to $220.00 and gave the stock a “buy” rating in a research report on Thursday, December 5th. DA Davidson reiterated a “neutral” rating and set a $150.00 price target on shares of Oracle in a research report on Tuesday. JMP Securities reissued a “market outperform” rating and issued a $205.00 price objective on shares of Oracle in a research note on Wednesday, January 22nd. Finally, Evercore ISI decreased their target price on Oracle from $200.00 to $185.00 and set an “outperform” rating for the company in a research note on Tuesday. Twelve research analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $178.92.

Insider Activity

In related news, CEO Safra Catz sold 2,101,154 shares of the stock in a transaction that occurred on Wednesday, January 22nd. The stock was sold at an average price of $185.35, for a total transaction of $389,448,893.90. Following the completion of the sale, the chief executive officer now owns 1,118,592 shares in the company, valued at $207,331,027.20. This represents a 65.26 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 42.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in ORCL. R Squared Ltd acquired a new stake in shares of Oracle during the 4th quarter worth approximately $25,000. Sunbeam Capital Management LLC bought a new position in Oracle in the fourth quarter worth $30,000. Winch Advisory Services LLC increased its holdings in Oracle by 89.7% in the 4th quarter. Winch Advisory Services LLC now owns 184 shares of the enterprise software provider’s stock valued at $31,000 after buying an additional 87 shares during the period. Hurley Capital LLC acquired a new position in shares of Oracle in the 4th quarter valued at $33,000. Finally, Synergy Investment Management LLC bought a new position in shares of Oracle during the 4th quarter worth about $34,000. Institutional investors own 42.44% of the company’s stock.

Oracle Stock Performance

The firm has a market capitalization of $403.58 billion, a price-to-earnings ratio of 35.28, a price-to-earnings-growth ratio of 3.46 and a beta of 1.07. The firm’s 50-day moving average price is $166.82 and its two-hundred day moving average price is $169.62. The company has a debt-to-equity ratio of 5.65, a quick ratio of 0.81 and a current ratio of 0.81.

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.