Oracle (NYSE:ORCL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Oracle provides enterprise-grade database, middleware and application software. Oracle is benefiting from strong adoption of its cloud-based solutions, comprising Fusion ERP and Fusion HCM, among others. We note that partnerships with the likes of Accenture are helping Oracle to rapidly expand its cloud-based clientele. Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS. Notably, shares of Oracle have outperformed industry in the past year. However, stiff competition in the cloud market from dominant players is anticipated to limit margin expansion. Further, lower hardware volumes are anticipated to hurt top-line growth consequently keeping margins under pressure. Additionally, integration risks from buyouts remain a concern. “
A number of other research analysts also recently commented on the company. Rosenblatt Securities reaffirmed a “hold” rating and set a $51.00 target price on shares of Oracle in a report on Tuesday, October 30th. Nomura reduced their target price on Oracle from $58.00 to $53.00 and set a “buy” rating on the stock in a report on Friday, October 26th. KeyCorp reaffirmed a “hold” rating on shares of Oracle in a report on Friday, October 26th. Credit Suisse Group reaffirmed a “buy” rating and set a $60.00 target price on shares of Oracle in a report on Wednesday, October 24th. Finally, Needham & Company LLC began coverage on Oracle in a report on Monday, October 22nd. They set a “hold” rating on the stock. Seventeen analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $53.71.
Oracle (NYSE:ORCL) last released its earnings results on Monday, September 17th. The enterprise software provider reported $0.71 EPS for the quarter, topping analysts’ consensus estimates of $0.68 by $0.03. Oracle had a return on equity of 25.60% and a net margin of 9.74%. The company had revenue of $9.20 billion for the quarter, compared to the consensus estimate of $9.26 billion. During the same quarter last year, the business posted $0.62 EPS. Oracle’s quarterly revenue was up .8% compared to the same quarter last year. On average, research analysts forecast that Oracle will post 3.06 earnings per share for the current fiscal year.
Oracle announced that its Board of Directors has initiated a stock repurchase program on Monday, September 17th that authorizes the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization authorizes the enterprise software provider to reacquire up to 5.9% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.
In related news, EVP Dorian Daley sold 131,696 shares of the firm’s stock in a transaction that occurred on Monday, September 24th. The stock was sold at an average price of $50.93, for a total value of $6,707,277.28. Following the sale, the executive vice president now directly owns 109,615 shares in the company, valued at approximately $5,582,691.95. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Hector Garcia-Molina sold 3,750 shares of the firm’s stock in a transaction that occurred on Monday, October 15th. The shares were sold at an average price of $47.26, for a total value of $177,225.00. Following the completion of the sale, the director now owns 27,969 shares in the company, valued at $1,321,814.94. The disclosure for this sale can be found here. In the last three months, insiders sold 142,946 shares of company stock worth $7,257,365. Company insiders own 32.00% of the company’s stock.
Institutional investors and hedge funds have recently bought and sold shares of the stock. Truvestments Capital LLC acquired a new stake in Oracle in the 3rd quarter valued at approximately $107,000. WESPAC Advisors SoCal LLC acquired a new position in shares of Oracle during the 3rd quarter valued at $119,000. ELM Advisors LLC acquired a new position in shares of Oracle during the 3rd quarter valued at $122,000. Kiley Juergens Wealth Management LLC increased its position in shares of Oracle by 70.9% during the 3rd quarter. Kiley Juergens Wealth Management LLC now owns 2,747 shares of the enterprise software provider’s stock valued at $141,000 after purchasing an additional 1,140 shares during the period. Finally, Palo Capital Inc. acquired a new position in shares of Oracle during the 3rd quarter valued at $141,000. Hedge funds and other institutional investors own 50.97% of the company’s stock.
Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure solutions for information technology (IT) environments worldwide. The company provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service.
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