Oracle (NYSE:ORCL) Trading 0.9% Higher – Should You Buy?

Oracle Co. (NYSE:ORCL)’s stock price rose 0.9% on Tuesday . The stock traded as high as $141.10 and last traded at $141.12. Approximately 2,177,662 shares traded hands during mid-day trading, a decline of 76% from the average daily volume of 8,963,370 shares. The stock had previously closed at $139.81.

Wall Street Analyst Weigh In

ORCL has been the subject of several analyst reports. BMO Capital Markets reduced their price objective on Oracle from $205.00 to $175.00 and set a “market perform” rating for the company in a research note on Tuesday, March 11th. JPMorgan Chase & Co. lowered their price objective on Oracle from $140.00 to $135.00 and set a “neutral” rating on the stock in a research report on Tuesday, March 11th. Bank of America reduced their target price on shares of Oracle from $195.00 to $175.00 and set a “neutral” rating for the company in a report on Tuesday, March 11th. Jefferies Financial Group lowered their price target on shares of Oracle from $220.00 to $190.00 and set a “buy” rating on the stock in a report on Monday. Finally, Guggenheim reissued a “buy” rating and issued a $220.00 price objective on shares of Oracle in a research note on Wednesday, March 5th. Thirteen investment analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $178.65.

Oracle Price Performance

The stock has a market capitalization of $395.99 billion, a P/E ratio of 34.60, a price-to-earnings-growth ratio of 3.46 and a beta of 1.07. The stock has a 50 day moving average of $163.52 and a 200-day moving average of $170.16. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 5.65.

Oracle (NYSE:ORCL) last released its quarterly earnings data on Monday, March 10th. The enterprise software provider reported $1.47 EPS for the quarter, missing the consensus estimate of $1.49 by ($0.02). Oracle had a return on equity of 133.25% and a net margin of 21.16%. The firm had revenue of $14.13 billion for the quarter, compared to analysts’ expectations of $14.40 billion. During the same quarter in the previous year, the business earned $1.41 earnings per share. The company’s revenue for the quarter was up 6.4% compared to the same quarter last year. On average, equities research analysts anticipate that Oracle Co. will post 5 earnings per share for the current fiscal year.

Oracle Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 23rd. Stockholders of record on Thursday, April 10th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Thursday, April 10th. This represents a $2.00 annualized dividend and a dividend yield of 1.41%. This is a positive change from Oracle’s previous quarterly dividend of $0.40. Oracle’s payout ratio is currently 46.95%.

Insider Activity

In related news, CEO Safra Catz sold 2,101,154 shares of the company’s stock in a transaction dated 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 transaction, the chief executive officer now directly owns 1,118,592 shares of the company’s stock, valued at $207,331,027.20. This represents a 65.26 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Company insiders own 42.20% of the company’s stock.

Institutional Trading of Oracle

Institutional investors have recently bought and sold shares of the stock. Howard Capital Management Group LLC increased its stake in shares of Oracle by 12.4% in the third quarter. Howard Capital Management Group LLC now owns 8,019 shares of the enterprise software provider’s stock worth $1,366,000 after acquiring an additional 883 shares during the period. Principal Financial Group Inc. raised its position in shares of Oracle by 5.3% during the 3rd quarter. Principal Financial Group Inc. now owns 2,416,362 shares of the enterprise software provider’s stock worth $411,748,000 after purchasing an additional 121,874 shares during the last quarter. United Bank lifted its position in shares of Oracle by 4.8% in the third quarter. United Bank now owns 11,430 shares of the enterprise software provider’s stock valued at $1,948,000 after acquiring an additional 519 shares in the last quarter. Tradition Wealth Management LLC grew its holdings in shares of Oracle by 1.9% during the third quarter. Tradition Wealth Management LLC now owns 5,099 shares of the enterprise software provider’s stock worth $869,000 after buying an additional 97 shares in the last quarter. Finally, Paloma Partners Management Co raised its holdings in Oracle by 123.2% in the 3rd quarter. Paloma Partners Management Co now owns 15,710 shares of the enterprise software provider’s stock valued at $2,677,000 after acquiring an additional 8,670 shares during the last quarter. 42.44% of the stock is currently owned by institutional investors and hedge funds.

About Oracle

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.