Oracle (NYSE: ORCL) Shares Steady at 0% - Is It Still a Strong Buy?

Oracle Corporation (NYSE:ORCL - Get Free Report) experienced a stagnant share price during trading on Thursday, reflecting a change of 0%. The stock reached a peak of $186.49 before settling at $184.28. A total of 6,182,294 shares changed hands during this session, significantly lower than the average trading volume of 12,735,546, marking a decline of 51%. The previous close for the stock was $184.22.

Wall Street Analysts Forecast Growth

Many investment firms have recently provided an update on Oracle's stock. KeyCorp raised their price target from $190.00 to $200.00, maintaining an "overweight" rating in a report published on November 15. Similarly, BMO Capital Markets increased their target from $173.00 to $205.00, rating the stock as "market perform" in their December 10 report. Morgan Stanley adjusted their price target from $145.00 to $175.00 while assigning an "equal weight" rating in a report also dated December 10. DA Davidson lifted their target from $140.00 to $150.00, giving Oracle a "neutral" rating in the same time frame. Additionally, Piper Sandler increased their target from $185.00 to $210.00, again with an "overweight" rating. Overall, one analyst has rated the stock as a sell, eleven have given it a hold rating, seventeen have recommended buying, and two provide a strong buy rating according to MarketBeat. This gives Oracle a consensus rating of "Moderate Buy" with an average target price of $182.73.

Oracle Price Performance

The company enjoys a market capitalization of $513.50 billion, with a P/E ratio of 44.89, a PEG ratio of 3.62, and a beta of 1.06. The stock's fifty-day simple moving average sits at $174.41 and the 200-day simple moving average is at $162.49. Oracle’s debt-to-equity ratio stands at 5.65, and both the current and quick ratios are 0.81.

Oracle recently reported its earnings results on December 9. The enterprise software provider announced earnings per share (EPS) of $1.47 for the quarter, slightly missing analysts' expectations of $1.48 by $0.01. The total revenue recorded for the quarter was $14.06 billion, which also fell short of the projected $14.12 billion. Nevertheless, the company saw an 8.6% increase in revenue compared to the same quarter the previous year. For context, their EPS for the same period last year was $1.34. Analysts forecast that Oracle will post an EPS of 5.01 for the ongoing fiscal year.

Oracle Announces Dividend

In corporate news, Oracle has declared its quarterly dividend, which was paid on January 9. Shareholders who were on record as of January 23 received a dividend of $0.40 per share, translating to an annualized dividend of $1.60 and a yield of 0.87%. The ex-dividend date was January 10, and Oracle's payout ratio currently stands at 39.12%.

Insider Buying and Selling

In insider activity, CEO Safra Catz sold 345,174 shares of Oracle stock on January 24 at an average price of $185.56. The total sales amounted to approximately $64 million. After this transaction, Catz retains ownership of 1,118,592 shares valued at nearly $207.57 million, representing a decrease of 23.58% in her holdings. This transaction was disclosed through a filing with the SEC, which is publicly accessible. Currently, company insiders own about 42.20% of Oracle’s shares.

Institutional Inflows and Outflows

Recently, institutional investors and hedge funds have adjusted their stakes in Oracle. R Squared Ltd established a new position in Oracle shares during the fourth quarter, valued at around $25,000. Winch Advisory Services LLC increased their holdings by 89.7% during the same period, now owning 184 shares worth $31,000 after buying an additional 87. Other firms, like Reston Wealth Management LLC and Synergy Asset Management LLC, also made new investments in Oracle worth approximately $44,000 and $47,000 respectively. Institutional investors and hedge funds collectively own around 42.44% of Oracle’s stock.

About Oracle

Oracle Corporation is a global leader in providing enterprise information technology products and services. Their offerings include a wide range of cloud services such as Oracle Fusion Cloud ERP, Oracle Fusion Cloud Human Capital Management, and various others to meet the needs of modern business environments.

Conclusion

As Oracle's stock remains unchanged at 0%, investors are left wondering about the best strategy moving forward. With positive forecasts from analysts and recent dividends, is it still a wise investment? Careful consideration of multiple factors including market performance, analyst ratings, and dividend yields will be crucial in making an informed decision.

Oracle, Stocks, Finance