Oracle (NYSE:ORCL) Trading Down 4.1% Following Weak Earnings

Oracle Co. (NYSE:ORCL)’s stock price traded down 4.1% during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The company traded as low as $147.13 and last traded at $148.77. 4,310,383 shares were traded during mid-day trading, a decline of 62% from the average session volume of 11,447,529 shares. The stock had previously closed at $155.16.

The enterprise software provider reported $1.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.02). The company had revenue of $14.13 billion during the quarter, compared to analysts’ expectations of $14.40 billion. Oracle had a net margin of 21.16% and a return on equity of 133.25%. Oracle’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same quarter last year, the company earned $1.41 earnings per share.

Oracle Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 23rd. Stockholders of record on Thursday, April 10th will be given a dividend of $0.50 per share. This is a positive change from Oracle’s previous quarterly dividend of $0.40. This represents a $2.00 annualized dividend and a dividend yield of 1.34%. Oracle’s dividend payout ratio (DPR) is currently 39.12%.

Analyst Ratings Changes

ORCL has been the topic of a number of research analyst reports. Guggenheim reiterated a “buy” rating and set a $220.00 target price on shares of Oracle in a research report on Wednesday, March 5th. Morgan Stanley lifted their price target on shares of Oracle from $145.00 to $175.00 and gave the company an “equal weight” rating in a research report on Tuesday, December 10th. UBS Group lifted their price objective on Oracle from $200.00 to $210.00 and gave the stock a “buy” rating in a research report on Tuesday, December 10th. Jefferies Financial Group boosted their price target on Oracle from $190.00 to $220.00 and gave the company a “buy” rating in a report on Thursday, December 5th. Finally, BMO Capital Markets boosted their price target on Oracle from $173.00 to $205.00 and gave the company a “market perform” rating in a report on Tuesday, December 10th. Eleven investment analysts have rated the stock with a hold rating, nineteen have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Oracle presently has an average rating of “Moderate Buy” and a consensus target price of $182.73.

Insider Transactions at Oracle

In other Oracle news, CEO Safra Catz sold 2,101,154 shares of the business’s stock in a transaction dated Wednesday, January 22nd. The stock was sold at an average price of $185.35, for a total value of $389,448,893.90. Following the completion of the transaction, the chief executive officer now directly owns 1,118,592 shares of the company’s stock, valued at approximately $207,331,027.20. The trade was a 65.26 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 42.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Capstone Triton Financial Group LLC grew its stake in Oracle by 8.5% in the fourth quarter. Capstone Triton Financial Group LLC now owns 9,878 shares of the enterprise software provider’s stock valued at $1,646,000 after acquiring an additional 773 shares during the period. Aegis Wealth Management LLC acquired a new position in Oracle in the fourth quarter valued at about $276,000. IronOak Wealth LLC. acquired a new position in shares of Oracle during the fourth quarter worth about $398,000. Wood Tarver Financial Group LLC acquired a new position in shares of Oracle during the fourth quarter worth about $290,000. Finally, TFR Capital LLC. acquired a new position in shares of Oracle during the fourth quarter worth about $321,000. 42.44% of the stock is owned by institutional investors and hedge funds.

Oracle Stock Down 4.1 %

The company has a debt-to-equity ratio of 5.65, a current ratio of 0.81 and a quick ratio of 0.81. The company has a market capitalization of $416.38 billion, a price-to-earnings ratio of 36.40, a PEG ratio of 3.46 and a beta of 1.07. The firm has a 50-day moving average price of $167.27 and a two-hundred day moving average price of $169.58.

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.