Oracle (NYSE:ORCL) Shares Gap Down on Disappointing Earnings

Oracle Co. (NYSE:ORCL)’s stock price gapped down before the market opened on Tuesday following a dissappointing 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 trading hands.

The enterprise software provider reported $1.47 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.01). The firm had revenue of $14.06 billion during the quarter, compared to analyst estimates of $14.12 billion. Oracle had a net margin of 20.40% and a return on equity of 171.38%. The company’s revenue for the quarter was up 8.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.34 EPS.

Oracle Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 23rd. Shareholders of record on Thursday, January 9th will be issued a dividend of $0.40 per share. The ex-dividend date of this dividend is Thursday, January 9th. This represents a $1.60 annualized dividend and a yield of 0.90%. Oracle’s dividend payout ratio is presently 41.24%.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on ORCL shares. Stifel Nicolaus lifted their price target on shares of Oracle from $155.00 to $175.00 and gave the company a “hold” rating in a report on Tuesday. UBS Group boosted their target price on shares of Oracle from $200.00 to $210.00 and gave the stock a “buy” rating in a report on Tuesday. Evercore ISI increased their price target on Oracle from $190.00 to $200.00 and gave the company an “outperform” rating in a research report on Tuesday. BMO Capital Markets upped their price objective on shares of Oracle from $173.00 to $205.00 and gave the company a “market perform” rating in a research note on Tuesday. Finally, DA Davidson lifted their price objective on shares of Oracle from $140.00 to $150.00 and gave the stock a “neutral” rating in a research report on Tuesday. Twelve equities research analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $181.48.

Insider Activity

In other Oracle news, EVP Maria Smith sold 6,320 shares of the business’s stock in a transaction dated 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 transaction, the executive vice president now directly owns 42,889 shares in the company, valued at approximately $7,076,685. The trade was a 12.84 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 42.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. DGS Capital Management LLC lifted its position in shares of Oracle by 6.6% during the 3rd quarter. DGS Capital Management LLC now owns 6,486 shares of the enterprise software provider’s stock valued at $1,105,000 after buying an additional 399 shares in the last quarter. Copley Financial Group Inc. acquired a new stake in shares of Oracle during the 3rd quarter worth approximately $546,000. Oddo BHF Asset Management Sas acquired a new position in shares of Oracle in the 3rd quarter valued at $1,242,000. Capasso Planning Partners LLC purchased a new position in shares of Oracle during the 3rd quarter worth $207,000. Finally, Inspire Trust Co. N.A. increased its holdings in Oracle by 11.7% in the 3rd quarter. Inspire Trust Co. N.A. now owns 30,729 shares of the enterprise software provider’s stock valued at $5,236,000 after purchasing an additional 3,207 shares during the last quarter. 42.44% of the stock is currently owned by hedge funds and other institutional investors.

Oracle Price Performance

The firm has a market capitalization of $492.53 billion, a price-to-earnings ratio of 45.81, a PEG ratio of 3.49 and a beta of 1.03. The company has a debt-to-equity ratio of 6.68, a current ratio of 0.72 and a quick ratio of 0.72. The stock 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.