Oracle (NYSE:ORCL) Stock Price Down 7.8% After Earnings Miss

Oracle Co. (NYSE:ORCL) was down 7.8% during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $171.06 and last traded at $175.61. 12,076,645 shares were traded during trading, an increase of 45% from the average session 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 business had revenue of $14.06 billion during the quarter, compared to analyst estimates of $14.12 billion. During the same quarter last year, the company posted $1.34 earnings per share. The company’s revenue was up 8.6% compared to the same quarter last year.

Oracle Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 9th. Stockholders 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 (DPR) is presently 41.24%.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on ORCL. Royal Bank of Canada reissued a “sector perform” rating and issued a $165.00 price target on shares of Oracle in a research note on Thursday, December 5th. DA Davidson boosted their target price on shares of Oracle from $140.00 to $150.00 and gave the company a “neutral” rating in a research report on Tuesday. Citigroup raised their price target on shares of Oracle from $140.00 to $157.00 and gave the stock a “neutral” rating in a report on Wednesday, September 11th. Guggenheim upped their price objective on shares of Oracle from $200.00 to $220.00 and gave the company a “buy” rating in a report on Thursday, December 5th. Finally, KeyCorp raised their target price on Oracle from $190.00 to $200.00 and gave the company an “overweight” rating in a research note on Friday, November 15th. Eleven research analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $177.80.

Insider Buying and Selling at Oracle

In related news, EVP Maria Smith sold 6,320 shares of the firm’s stock in a transaction that occurred 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 transaction, the executive vice president now directly owns 42,889 shares of the company’s stock, valued at approximately $7,076,685. This trade represents a 12.84 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 42.20% of the company’s stock.

Institutional Investors Weigh In On Oracle

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Principal Financial Group Inc. raised its position in shares of Oracle by 5.3% in the third quarter. Principal Financial Group Inc. now owns 2,416,362 shares of the enterprise software provider’s stock worth $411,748,000 after buying an additional 121,874 shares in the last quarter. Itau Unibanco Holding S.A. increased its stake in Oracle by 15.3% in the 2nd quarter. Itau Unibanco Holding S.A. now owns 24,800 shares of the enterprise software provider’s stock worth $3,502,000 after acquiring an additional 3,300 shares during the last quarter. Chase Investment Counsel Corp purchased a new stake in shares of Oracle in the 3rd quarter valued at about $4,160,000. Oppenheimer Asset Management Inc. boosted its position in shares of Oracle by 79.6% during the 3rd quarter. Oppenheimer Asset Management Inc. now owns 286,460 shares of the enterprise software provider’s stock valued at $48,813,000 after acquiring an additional 126,985 shares during the last quarter. Finally, Miura Global Management LLC purchased a new position in shares of Oracle during the third quarter worth about $1,704,000. 42.44% of the stock is currently owned by institutional investors.

Oracle Stock Performance

The company’s 50-day moving average is $179.76 and its two-hundred day moving average is $154.67. The company has a market capitalization of $488.10 billion, a P/E ratio of 45.26, a PEG ratio of 3.49 and a beta of 1.03. The company has a quick ratio of 0.72, a current ratio of 0.72 and a debt-to-equity ratio of 6.68.

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.