Oracle (NYSE:ORCL) Trading Down 5.2% on Disappointing Earnings

Oracle Co. (NYSE:ORCL)’s stock price was down 5.2% during trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $137.70 and last traded at $141.10. Approximately 11,847,020 shares traded hands during trading, an increase of 0% from the average daily volume of 11,831,542 shares. The stock had previously closed at $148.79.

The enterprise software provider reported $1.47 EPS for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.02). The business had revenue of $14.13 billion for the quarter, compared to analyst estimates of $14.40 billion. Oracle had a return on equity of 133.25% and a net margin of 21.16%. Oracle’s revenue was up 6.4% on a year-over-year basis. During the same period in the prior year, the firm posted $1.41 EPS.

Oracle Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 23rd. Shareholders of record on Thursday, April 10th will be paid a $0.50 dividend. This is a positive change from Oracle’s previous quarterly dividend of $0.40. The ex-dividend date is Thursday, April 10th. This represents a $2.00 annualized dividend and a yield of 1.32%. Oracle’s dividend payout ratio is presently 39.12%.

Analysts Set New Price Targets

ORCL has been the subject of a number of recent analyst reports. Royal Bank of Canada set a $145.00 price target on Oracle and gave the company a “sector perform” rating in a research note on Tuesday. Piper Sandler lowered their target price on shares of Oracle from $210.00 to $190.00 and set an “overweight” rating for the company in a research note on Tuesday. Jefferies Financial Group lifted their price target on shares of Oracle from $190.00 to $220.00 and gave the stock a “buy” rating in a research report on Thursday, December 5th. Evercore ISI lowered their price objective on shares of Oracle from $200.00 to $185.00 and set an “outperform” rating for the company in a research report on Tuesday. Finally, Stifel Nicolaus reduced their target price on Oracle from $175.00 to $150.00 and set a “hold” rating on the stock in a report on Tuesday. Thirteen equities research analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $176.85.

Insider Buying and Selling at Oracle

In other news, CEO Safra Catz sold 345,174 shares of Oracle stock in a transaction dated Friday, January 24th. The shares were sold at an average price of $185.56, for a total value of $64,050,487.44. Following the completion of the transaction, the chief executive officer now owns 1,118,592 shares of the company’s stock, valued at $207,565,931.52. This trade represents a 23.58 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 42.20% of the company’s stock.

Institutional Investors Weigh In On Oracle

Several hedge funds have recently bought and sold shares of ORCL. R Squared Ltd bought a new stake in Oracle in the fourth quarter valued at approximately $25,000. Sunbeam Capital Management LLC acquired a new position in shares of Oracle during the 4th quarter worth approximately $30,000. Winch Advisory Services LLC raised its stake in Oracle by 89.7% in the 4th quarter. Winch Advisory Services LLC now owns 184 shares of the enterprise software provider’s stock valued at $31,000 after acquiring an additional 87 shares during the period. Hurley Capital LLC acquired a new stake in Oracle during the 4th quarter valued at $33,000. Finally, Synergy Investment Management LLC acquired a new stake in Oracle during the 4th quarter valued at $34,000. 42.44% of the stock is currently owned by institutional investors and hedge funds.

Oracle Stock Performance

The stock has a market capitalization of $422.81 billion, a P/E ratio of 36.96, a PEG ratio of 3.46 and a beta of 1.07. The stock’s 50-day simple moving average is $166.51 and its 200 day simple moving average is $169.49. The company has a debt-to-equity ratio of 5.65, a current ratio of 0.81 and a quick ratio of 0.81.

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.