Oracle (NYSE:ORCL) Trading Down 7.8% Following Weak Earnings

Oracle Co. (NYSE:ORCL)’s share price dropped 7.8% during trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $171.06 and last traded at $175.61. Approximately 12,076,645 shares were traded during mid-day trading, an increase of 45% from the average daily volume of 8,316,787 shares. The stock had previously closed at $190.45.

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

Oracle Announces Dividend

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 paid a $0.40 dividend. The ex-dividend date of this dividend is Thursday, January 9th. This represents a $1.60 dividend on an annualized basis and a yield of 0.90%. Oracle’s dividend payout ratio is presently 41.24%.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the stock. Piper Sandler boosted their price objective on shares of Oracle from $185.00 to $210.00 and gave the company an “overweight” rating in a research note on Tuesday. Jefferies Financial Group raised their price objective on shares of Oracle from $190.00 to $220.00 and gave the company a “buy” rating in a research report on Thursday, December 5th. Oppenheimer reiterated a “market perform” rating on shares of Oracle in a research report on Tuesday, September 10th. StockNews.com cut Oracle from a “buy” rating to a “hold” rating in a report on Tuesday. Finally, Melius Research upgraded Oracle from a “hold” rating to a “buy” rating in a research report on Monday, September 16th. Twelve research analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $181.48.

Insiders Place Their Bets

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 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 filing with the Securities & Exchange Commission, which is accessible through this link. 42.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Oracle

Institutional investors and hedge funds have recently made changes to their positions in the company. State Street Corp raised its position in shares of Oracle by 2.7% during the 3rd quarter. State Street Corp now owns 70,441,556 shares of the enterprise software provider’s stock worth $12,003,241,000 after purchasing an additional 1,847,561 shares during the period. Geode Capital Management LLC grew its stake in Oracle by 2.6% during the 3rd quarter. Geode Capital Management LLC now owns 35,194,683 shares of the enterprise software provider’s stock worth $5,977,015,000 after buying an additional 885,041 shares during the last quarter. Franklin Resources Inc. increased its position in Oracle by 11.6% in the third quarter. Franklin Resources Inc. now owns 18,480,384 shares of the enterprise software provider’s stock worth $3,370,640,000 after buying an additional 1,917,416 shares during the period. Fisher Asset Management LLC lifted its stake in Oracle by 1.8% in the third quarter. Fisher Asset Management LLC now owns 17,898,029 shares of the enterprise software provider’s stock valued at $3,049,824,000 after buying an additional 310,709 shares during the last quarter. Finally, Janus Henderson Group PLC boosted its holdings in shares of Oracle by 0.4% during the third quarter. Janus Henderson Group PLC now owns 14,608,951 shares of the enterprise software provider’s stock valued at $2,489,345,000 after acquiring an additional 54,868 shares during the period. 42.44% of the stock is owned by institutional investors and hedge funds.

Oracle Stock Down 6.7 %

The firm has a market cap of $492.53 billion, a P/E ratio of 45.81, a price-to-earnings-growth ratio of 3.49 and a beta of 1.03. The firm’s 50-day moving average price is $179.76 and its 200 day moving average price is $154.67. The company has a quick ratio of 0.72, a current ratio of 0.72 and a debt-to-equity ratio of 6.68.

Oracle Company Profile

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.