Traders Buy Oracle (ORCL) on Weakness After Analyst Downgrade

Traders purchased shares of Oracle Co. (NYSE:ORCL) on weakness during trading hours on Thursday after Nomura lowered their price target on the stock from $64.00 to $60.00. $264.45 million flowed into the stock on the tick-up and $233.40 million flowed out of the stock on the tick-down, for a money net flow of $31.05 million into the stock. Of all equities tracked, Oracle had the 15th highest net in-flow for the day. Oracle traded down ($2.37) for the day and closed at $45.90

Other equities research analysts have also issued research reports about the company. Morgan Stanley reissued a “buy” rating on shares of Oracle in a report on Sunday, March 18th. Credit Suisse Group restated a “buy” rating and issued a $62.00 target price on shares of Oracle in a research note on Sunday, February 18th. JPMorgan Chase & Co. restated a “buy” rating and issued a $55.00 target price on shares of Oracle in a research note on Tuesday, March 20th. Zacks Investment Research upgraded Oracle from a “hold” rating to a “buy” rating and set a $53.00 target price for the company in a research note on Friday, March 23rd. Finally, TheStreet downgraded Oracle from a “b+” rating to a “c+” rating in a research note on Monday, March 19th. One equities research analyst has rated the stock with a sell rating, sixteen have given a hold rating and twenty-two have issued a buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus price target of $56.12.

In other Oracle news, EVP Dorian Daley sold 125,000 shares of Oracle stock in a transaction that occurred on Monday, March 26th. The stock was sold at an average price of $45.95, for a total value of $5,743,750.00. Following the transaction, the executive vice president now directly owns 161,954 shares of the company’s stock, valued at approximately $7,441,786.30. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Edward Screven sold 500,000 shares of Oracle stock in a transaction that occurred on Thursday, May 10th. The stock was sold at an average price of $46.89, for a total value of $23,445,000.00. Following the completion of the transaction, the insider now directly owns 2,644,595 shares in the company, valued at $124,005,059.55. The disclosure for this sale can be found here. Insiders sold a total of 2,553,265 shares of company stock worth $117,284,602 over the last ninety days. Insiders own 29.00% of the company’s stock.

A number of institutional investors have recently made changes to their positions in the business. Clearbridge Investments LLC grew its stake in Oracle by 148.9% in the fourth quarter. Clearbridge Investments LLC now owns 15,759,813 shares of the enterprise software provider’s stock worth $745,124,000 after purchasing an additional 9,429,236 shares during the period. Mackenzie Financial Corp grew its stake in Oracle by 50.2% in the fourth quarter. Mackenzie Financial Corp now owns 16,111,806 shares of the enterprise software provider’s stock worth $761,766,000 after purchasing an additional 5,387,078 shares during the period. OppenheimerFunds Inc. grew its stake in Oracle by 81.8% in the fourth quarter. OppenheimerFunds Inc. now owns 6,531,857 shares of the enterprise software provider’s stock worth $308,826,000 after purchasing an additional 2,938,638 shares during the period. Amundi Pioneer Asset Management Inc. grew its stake in Oracle by 100.9% in the fourth quarter. Amundi Pioneer Asset Management Inc. now owns 5,580,604 shares of the enterprise software provider’s stock worth $263,850,000 after purchasing an additional 2,803,359 shares during the period. Finally, Bank of Montreal Can grew its stake in Oracle by 76.1% in the fourth quarter. Bank of Montreal Can now owns 5,732,123 shares of the enterprise software provider’s stock worth $271,015,000 after purchasing an additional 2,476,975 shares during the period. 56.34% of the stock is currently owned by institutional investors and hedge funds.

The company has a market capitalization of $199.49 billion, a price-to-earnings ratio of 18.42, a price-to-earnings-growth ratio of 1.63 and a beta of 1.15. The company has a debt-to-equity ratio of 1.16, a current ratio of 4.33 and a quick ratio of 4.30.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Monday, March 19th. The enterprise software provider reported $0.83 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.72 by $0.11. The company had revenue of $9.78 billion for the quarter, compared to analysts’ expectations of $9.77 billion. Oracle had a return on equity of 21.77% and a net margin of 9.25%. The firm’s revenue for the quarter was up 5.4% on a year-over-year basis. During the same period in the prior year, the firm earned $0.69 earnings per share. analysts predict that Oracle Co. will post 2.78 EPS for the current fiscal year.

Oracle Company Profile

Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure technologies for information technology (IT) environments worldwide. It provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service.

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