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

Oracle Co. (NYSE:ORCL)’s share price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $190.45, but opened at $173.46. Oracle shares last traded at $174.54, with a volume of 6,421,677 shares.

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

Oracle Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 9th. Investors of record on Thursday, January 23rd will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 0.91%. Oracle’s dividend payout ratio is currently 41.24%.

Analysts Set New Price Targets

ORCL has been the topic of several analyst reports. Barclays raised their price target on shares of Oracle from $160.00 to $172.00 and gave the stock an “overweight” rating in a research note on Tuesday, September 10th. TD Cowen lifted their target price on shares of Oracle from $165.00 to $180.00 and gave the stock a “buy” rating in a research note on Tuesday, September 10th. Mizuho raised their price objective on Oracle from $185.00 to $210.00 and gave the stock an “outperform” rating in a report on Tuesday. Melius Research upgraded Oracle from a “hold” rating to a “buy” rating in a research note on Monday, September 16th. Finally, Sanford C. Bernstein raised their price target on Oracle from $201.00 to $202.00 and gave the stock an “outperform” rating in a research note on Monday, September 30th. Eleven research analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $177.40.

Insider Activity at Oracle

In related news, EVP Maria Smith sold 6,320 shares of Oracle stock in a transaction on Monday, September 16th. The shares were sold at an average price of $165.00, for a total value of $1,042,800.00. Following the completion of the sale, the executive vice president now owns 42,889 shares of the company’s stock, valued at approximately $7,076,685. The trade was a 12.84 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 42.20% of the stock is owned by insiders.

Institutional Trading of Oracle

Institutional investors and hedge funds have recently made changes to their positions in the stock. Principal Financial Group Inc. boosted its holdings in Oracle by 5.3% during the third quarter. Principal Financial Group Inc. now owns 2,416,362 shares of the enterprise software provider’s stock valued at $411,748,000 after acquiring an additional 121,874 shares during the period. Itau Unibanco Holding S.A. boosted its position in shares of Oracle by 15.3% during the 2nd quarter. Itau Unibanco Holding S.A. now owns 24,800 shares of the enterprise software provider’s stock valued at $3,502,000 after acquiring an additional 3,300 shares in the last quarter. Chase Investment Counsel Corp bought a new stake in Oracle in the third quarter valued at about $4,160,000. Oppenheimer Asset Management Inc. lifted its stake in Oracle by 79.6% during the third quarter. Oppenheimer Asset Management Inc. now owns 286,460 shares of the enterprise software provider’s stock worth $48,813,000 after purchasing an additional 126,985 shares during the period. Finally, Miura Global Management LLC acquired a new stake in Oracle during the third quarter valued at approximately $1,704,000. Institutional investors and hedge funds own 42.44% of the company’s stock.

Oracle Stock Performance

The company has a debt-to-equity ratio of 6.68, a quick ratio of 0.72 and a current ratio of 0.72. The company has a market capitalization of $485.57 billion, a P/E ratio of 44.91, a price-to-earnings-growth ratio of 3.49 and a beta of 1.03. The firm has a 50 day moving average price of $179.76 and a two-hundred day moving average price of $154.67.

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.