Oracle (NYSE:ORCL) Trading Down 5.2% Following Weak Earnings

Oracle Co. (NYSE:ORCL) shares fell 5.2% during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $137.70 and last traded at $141.10. 11,847,020 shares traded hands during trading, an increase of 0% from the average session volume of 11,831,542 shares. The stock had previously closed at $148.79.

The enterprise software provider reported $1.47 earnings per share for the quarter, missing the consensus estimate of $1.49 by ($0.02). Oracle had a return on equity of 133.25% and a net margin of 21.16%. The business had revenue of $14.13 billion during the quarter, compared to analyst estimates of $14.40 billion. During the same quarter last year, the firm earned $1.41 EPS. Oracle’s revenue for the quarter was up 6.4% compared to the same quarter last year.

Oracle Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 23rd. Investors of record on Thursday, April 10th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.41%. This is an increase from Oracle’s previous quarterly dividend of $0.40. Oracle’s dividend payout ratio is currently 39.12%.

Analyst Upgrades and Downgrades

ORCL has been the topic of several analyst reports. BNP Paribas raised Oracle to a “strong-buy” rating in a report on Tuesday, December 10th. Bank of America reduced their price objective on shares of Oracle from $195.00 to $175.00 and set a “neutral” rating on the stock in a research note on Tuesday. Mizuho boosted their target price on shares of Oracle from $185.00 to $210.00 and gave the company an “outperform” rating in a research report on Tuesday, December 10th. Monness Crespi & Hardt raised shares of Oracle from a “sell” rating to a “neutral” rating in a report on Monday, March 3rd. Finally, Cantor Fitzgerald decreased their price objective on shares of Oracle from $214.00 to $175.00 and set an “overweight” rating on the stock in a research note on Tuesday. Eleven analysts have rated the stock with a hold rating, nineteen have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, Oracle currently has an average rating of “Moderate Buy” and a consensus price target of $178.92.

Insider Buying and Selling

In other news, CEO Safra Catz sold 2,101,154 shares of the stock in a transaction dated Wednesday, January 22nd. The stock was sold at an average price of $185.35, for a total value of $389,448,893.90. Following the completion of the sale, the chief executive officer now owns 1,118,592 shares of the company’s stock, valued at approximately $207,331,027.20. This represents a 65.26 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 42.20% of the stock is owned by corporate insiders.

Institutional Trading of Oracle

Institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in shares of Oracle in the 4th quarter worth approximately $2,216,314,000. Raymond James Financial Inc. bought a new position in Oracle during the fourth quarter worth $930,095,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Oracle by 20.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,825,360 shares of the enterprise software provider’s stock valued at $2,303,858,000 after buying an additional 2,350,448 shares during the period. Vanguard Group Inc. boosted its position in Oracle by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 157,411,949 shares of the enterprise software provider’s stock valued at $26,231,127,000 after acquiring an additional 2,296,069 shares during the last quarter. Finally, Kovitz Investment Group Partners LLC grew its holdings in Oracle by 268.4% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 3,077,947 shares of the enterprise software provider’s stock worth $512,909,000 after acquiring an additional 2,242,520 shares during the period. 42.44% of the stock is currently owned by institutional investors.

Oracle Stock Performance

The stock has a market capitalization of $396.84 billion, a P/E ratio of 34.72, a price-to-earnings-growth ratio of 3.46 and a beta of 1.07. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 5.65. The company has a 50-day moving average price of $167.27 and a two-hundred day moving average price of $169.58.

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.