According to Zacks, “Oracle's first-quarter 2017 results failed to impress us. Although cloud revenue growth was strong, weak on-premise software revenues dragged down the results. Oracle is in the middle of a business transition from licensing to cloud which will be accretive to long term growth. However, it is a drag on the financials at present. Adding to that, Oracle seems to have hit a bad patch as far as litigation is concerned. Earlier this year, it lost a JAVA APIs lawsuit against Alphabet’s Google and another Itanium software lawsuit against HPE. Although, Oracle is set to to re-appeal against these verdicts, the adverse decisions will remain an overhang on the stock. Nevertheless, the ongoing momentum at SaaS and PaaS provides signficant growth opportunity. The introduction of Generation2 IaaS data centers are expected to improve Oracle’s competitive prowess against Amazon Web Services and will drive market share going ahead.”
Several other equities analysts have also commented on ORCL. Citigroup Inc. restated a hold rating on shares of Oracle Corp. in a report on Saturday, June 18th. SunTrust Banks Inc. set a $48.00 target price on shares of Oracle Corp. and gave the stock a buy rating in a research note on Saturday, September 17th. DA Davidson reaffirmed a buy rating and set a $52.00 target price on shares of Oracle Corp. in a research note on Saturday, September 17th. Rosenblatt Securities set a $48.00 target price on shares of Oracle Corp. and gave the stock a buy rating in a research note on Saturday, September 17th. Finally, Morgan Stanley reaffirmed an equal weight rating and set a $41.00 target price on shares of Oracle Corp. in a research note on Wednesday, June 15th. Four equities research analysts have rated the stock with a sell rating, fifteen have given a hold rating, twenty-six have issued a buy rating and one has assigned a strong buy rating to the company. Oracle Corp. has a consensus rating of Buy and an average target price of $44.86.
Shares of Oracle Corp. (NYSE:ORCL) opened at 39.23 on Tuesday. The firm has a market capitalization of $161.06 billion, a P/E ratio of 18.64 and a beta of 1.08. The stock’s 50 day moving average is $40.75 and its 200 day moving average is $40.35. Oracle Corp. has a 1-year low of $33.13 and a 1-year high of $42.00.
Oracle Corp. (NYSE:ORCL) last issued its quarterly earnings data on Thursday, September 15th. The enterprise software provider reported $0.55 EPS for the quarter, missing the consensus estimate of $0.58 by $0.03. Oracle Corp. had a return on equity of 22.10% and a net margin of 24.16%. The company earned $8.60 billion during the quarter. During the same quarter in the prior year, the company posted $0.53 EPS. The business’s revenue was up 1.9% on a year-over-year basis. Equities analysts predict that Oracle Corp. will post $2.63 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 26th. Shareholders of record on Wednesday, October 12th will be paid a dividend of $0.15 per share. The ex-dividend date is Friday, October 7th. This represents a $0.60 annualized dividend and a yield of 1.53%. Oracle Corp.’s payout ratio is 28.57%.
In other Oracle Corp. news, EVP Dorian Daley sold 16,065 shares of the business’s stock in a transaction on Thursday, September 22nd. The shares were sold at an average price of $39.61, for a total transaction of $636,334.65. Following the completion of the sale, the executive vice president now owns 25,000 shares in the company, valued at $990,250. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Hector Garcia-Molina sold 3,750 shares of the business’s stock in a transaction on Friday, July 15th. The shares were sold at an average price of $41.78, for a total transaction of $156,675.00. Following the sale, the director now owns 8,281 shares of the company’s stock, valued at approximately $345,980.18. The disclosure for this sale can be found here. Company insiders own 28.00% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the stock. Check Capital Management Inc. CA raised its stake in Oracle Corp. by 1.8% in the second quarter. Check Capital Management Inc. CA now owns 714,129 shares of the enterprise software provider’s stock valued at $29,229,000 after buying an additional 12,676 shares during the last quarter. DAVENPORT & Co LLC raised its stake in Oracle Corp. by 8.1% in the second quarter. DAVENPORT & Co LLC now owns 852,620 shares of the enterprise software provider’s stock valued at $34,898,000 after buying an additional 64,091 shares during the last quarter. National Pension Service raised its stake in Oracle Corp. by 4.2% in the first quarter. National Pension Service now owns 1,765,267 shares of the enterprise software provider’s stock valued at $72,217,000 after buying an additional 71,804 shares during the last quarter. AXA raised its stake in Oracle Corp. by 0.3% in the first quarter. AXA now owns 1,814,706 shares of the enterprise software provider’s stock valued at $74,240,000 after buying an additional 4,952 shares during the last quarter. Finally, Factory Mutual Insurance Co. raised its stake in Oracle Corp. by 22.3% in the first quarter. Factory Mutual Insurance Co. now owns 2,150,920 shares of the enterprise software provider’s stock valued at $87,994,000 after buying an additional 392,000 shares during the last quarter. Hedge funds and other institutional investors own 58.00% of the company’s stock.
About Oracle Corp.
Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support.
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