Oracle (ORCL) Shares Down 9.4% on Insider Selling

Shares of Oracle Co. (NYSE:ORCL) traded down 9.4% during trading on Tuesday after an insider sold shares in the company. The company traded as low as $46.43 and last traded at $47.05. 68,559,852 shares traded hands during mid-day trading, an increase of 304% from the average session volume of 16,979,701 shares. The stock had previously closed at $51.95.

Specifically, Director Hector Garcia-Molina sold 3,750 shares of the company’s stock in a transaction that occurred on Tuesday, January 16th. The shares were sold at an average price of $49.72, for a total value of $186,450.00. Following the completion of the sale, the director now owns 18,125 shares of the company’s stock, valued at approximately $901,175. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Dorian Daley sold 100,000 shares of the company’s stock in a transaction that occurred on Thursday, December 21st. The stock was sold at an average price of $47.59, for a total transaction of $4,759,000.00. Following the completion of the sale, the executive vice president now directly owns 136,954 shares of the company’s stock, valued at approximately $6,517,640.86. The disclosure for this sale can be found here. Insiders sold a total of 1,956,250 shares of company stock valued at $98,330,688 in the last ninety days. Corporate insiders own 29.00% of the company’s stock.

Several equities research analysts have recently weighed in on the stock. JPMorgan Chase & Co. set a $55.00 price target on shares of Oracle and gave the stock a “buy” rating in a research report on Tuesday. Nomura cut shares of Oracle from a “buy” rating to a “neutral” rating in a research report on Tuesday. Credit Suisse Group lowered their price target on shares of Oracle from $62.00 to $60.00 and set an “outperform” rating for the company in a research report on Tuesday. KeyCorp reaffirmed a “sector weight” rating on shares of Oracle in a research report on Tuesday. Finally, William Blair reaffirmed a “market perform” rating on shares of Oracle in a research report on Tuesday. One analyst has rated the stock with a sell rating, fifteen have issued a hold rating and twenty-four have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus price target of $56.17.

The firm has a market capitalization of $216,377.00, a P/E ratio of 20.19, a price-to-earnings-growth ratio of 1.99 and a beta of 1.05. The company has a debt-to-equity ratio of 1.03, a current ratio of 5.07 and a quick ratio of 5.04.

Oracle (NYSE:ORCL) last released its quarterly earnings data on Monday, March 19th. The enterprise software provider reported $0.83 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.72 by $0.11. The firm had revenue of $9.78 billion for the quarter, compared to analyst estimates of $9.77 billion. Oracle had a net margin of 25.48% and a return on equity of 20.49%. The business’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.69 earnings per share. analysts expect that Oracle Co. will post 2.68 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 1st. Stockholders of record on Tuesday, April 17th will be paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 1.62%. Oracle’s payout ratio is currently 32.62%.

Oracle announced that its board has authorized a share buyback program on Thursday, December 14th that allows the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization allows the enterprise software provider to reacquire shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Several large investors have recently added to or reduced their stakes in ORCL. Vanguard Group Inc. boosted its holdings in Oracle by 2.6% during the second quarter. Vanguard Group Inc. now owns 206,441,876 shares of the enterprise software provider’s stock worth $10,350,996,000 after buying an additional 5,270,359 shares in the last quarter. BlackRock Inc. boosted its holdings in Oracle by 2.5% during the second quarter. BlackRock Inc. now owns 193,791,492 shares of the enterprise software provider’s stock worth $9,716,707,000 after buying an additional 4,678,977 shares in the last quarter. Harris Associates L P boosted its holdings in Oracle by 17.9% during the second quarter. Harris Associates L P now owns 48,989,216 shares of the enterprise software provider’s stock worth $2,456,319,000 after buying an additional 7,427,501 shares in the last quarter. Northern Trust Corp boosted its holdings in Oracle by 4.6% during the second quarter. Northern Trust Corp now owns 42,098,104 shares of the enterprise software provider’s stock worth $2,110,799,000 after buying an additional 1,835,835 shares in the last quarter. Finally, Franklin Resources Inc. boosted its holdings in Oracle by 5.8% during the second quarter. Franklin Resources Inc. now owns 40,206,990 shares of the enterprise software provider’s stock worth $2,015,961,000 after buying an additional 2,193,120 shares in the last quarter. Hedge funds and other institutional investors own 57.93% of the company’s stock.

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About Oracle

Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support.

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