Oracle Corporation (NYSE: ORCL) has seen its price target revised downward by analysts at Scotiabank, dropping from $260.00 to $220.00. This adjustment was disclosed in a research report issued on Tuesday, indicating a current rating of “sector outperform” for the enterprise software provider’s stock. The new target suggests a potential upside of approximately 37.24% from Oracle’s prevailing stock price.
Several other financial institutions have also reassessed their outlook on Oracle. Piper Sandler reduced its target from $290.00 to $240.00, maintaining an “overweight” rating. In contrast, Guggenheim reaffirmed a “buy” rating and set a target price of $400.00. Deutsche Bank Aktiengesellschaft also reiterated a “buy” rating, issuing a price target of $375.00. Meanwhile, BMO Capital Markets cut its target from $355.00 to $270.00, while Weiss Ratings downgraded Oracle from a “buy (b-)” to a “hold (c+)” rating.
The consensus among analysts shows a range of perspectives, with three rating the stock as “Strong Buy,” twenty-five issuing a “Buy,” eleven giving a “Hold,” and two providing a “Sell” rating. According to data from MarketBeat.com, Oracle holds a consensus rating of “Moderate Buy” and a consensus target price of $297.89.
Recent Earnings and Insider Activity
Oracle’s latest quarterly earnings report, released on December 10, revealed an earnings per share (EPS) of $2.26, surpassing analysts’ expectations of $1.64 by $0.62. The company reported a net margin of 25.28% and a return on equity of 70.60%. Revenue for the quarter reached $16.06 billion, slightly below analysts’ expectations of $16.19 billion, yet representing a year-over-year increase of 14.2%.
In addition to earnings, insider trading has captured attention. CEO Clayton M. Magouyrk sold 10,000 shares of Oracle stock on December 19, at an average price of $192.52, totaling $1,925,200.00. Following the sale, Magouyrk retains 144,030 shares valued at approximately $27,728,655.60, reflecting a 6.49% decrease in his position.
Additionally, Executive Vice President Douglas A. Kehring sold 35,000 shares on January 15, at an average price of $194.89, totaling $6,821,150.00. After this transaction, Kehring owns 33,638 shares, valued at roughly $6,555,709.82, marking a 50.99% reduction in his stake. Over the last 90 days, insiders have sold a total of 62,223 shares valued at $12,136,764. Notably, insiders currently own 40.90% of Oracle’s stock.
Institutional Investor Activity
Recent modifications in institutional holdings also reflect significant interest in Oracle. The Swiss National Bank boosted its stake by 7.6% during the second quarter, now owning 5,093,200 shares worth approximately $1,113,526,000 after acquiring an additional 360,000 shares.
Patton Fund Management Inc. increased its position by an impressive 626.1% during the third quarter, now holding 11,537 shares valued at $3,245,000. Other notable investors include Private Wealth Asset Management LLC and Soltis Investment Advisors LLC, both of which expanded their stakes during the second quarter. Currently, institutional investors and hedge funds own 42.44% of Oracle’s shares.
As Oracle continues to navigate a competitive landscape, its performance and strategic decisions will remain in focus for both analysts and investors alike. The company’s commitment to cloud solutions and enterprise software development positions it as a key player in the technology sector, reflecting ongoing investor interest and market dynamics.
