Oracle (NYSE:ORCL) Trading 12.3% Higher Following Earnings Beat

Oracle Co. (NYSE:ORCL)’s share price traded up 12.3% during trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $160.52 and last traded at $157.11. Approximately 19,839,783 shares changed hands during mid-day trading, an increase of 142% from the average session volume of 8,184,971 shares. The stock had previously closed at $139.89.

The enterprise software provider reported $1.39 earnings per share for the quarter, beating analysts’ consensus estimates of $1.33 by $0.06. The business had revenue of $13.31 billion for the quarter, compared to the consensus estimate of $13.23 billion. Oracle had a net margin of 19.76% and a return on equity of 223.01%. Oracle’s revenue for the quarter was up 6.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.95 EPS.

Oracle Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 24th. Investors of record on Thursday, October 10th will be paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.03%. The ex-dividend date is Thursday, October 10th. Oracle’s payout ratio is 43.13%.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. JMP Securities upgraded Oracle from a “market perform” rating to an “outperform” rating and set a $175.00 price target on the stock in a report on Tuesday. Argus raised their target price on shares of Oracle from $145.00 to $159.00 and gave the company a “buy” rating in a research note on Tuesday, June 18th. Evercore ISI boosted their target price on shares of Oracle from $160.00 to $175.00 and gave the stock an “outperform” rating in a research report on Tuesday. DA Davidson raised their price target on Oracle from $105.00 to $140.00 and gave the company a “neutral” rating in a research report on Tuesday. Finally, StockNews.com raised Oracle from a “hold” rating to a “buy” rating in a research report on Tuesday. Twelve analysts have rated the stock with a hold rating and nineteen have given a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $157.52.

Insiders Place Their Bets

In related news, Director Leon E. Panetta sold 15,000 shares of the firm’s stock in a transaction that occurred on Thursday, July 18th. The shares were sold at an average price of $137.89, for a total value of $2,068,350.00. Following the completion of the sale, the director now owns 58,090 shares of the company’s stock, valued at $8,010,030.10. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. In other Oracle news, insider Edward Screven sold 235,918 shares of the company’s stock in a transaction dated Thursday, June 20th. The shares were sold at an average price of $144.30, for a total transaction of $34,042,967.40. Following the transaction, the insider now directly owns 2,626,764 shares in the company, valued at approximately $379,042,045.20. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Leon E. Panetta sold 15,000 shares of the firm’s stock in a transaction dated Thursday, July 18th. The shares were sold at an average price of $137.89, for a total transaction of $2,068,350.00. Following the completion of the transaction, the director now directly owns 58,090 shares in the company, valued at approximately $8,010,030.10. The disclosure for this sale can be found here. Insiders have sold a total of 1,862,500 shares of company stock valued at $266,776,624 in the last 90 days. 42.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ORCL. International Assets Investment Management LLC increased its stake in Oracle by 153.3% in the fourth quarter. International Assets Investment Management LLC now owns 11,947 shares of the enterprise software provider’s stock valued at $1,260,000 after purchasing an additional 7,230 shares in the last quarter. Brio Consultants LLC raised its stake in Oracle by 4.1% during the 4th quarter. Brio Consultants LLC now owns 2,942 shares of the enterprise software provider’s stock worth $310,000 after buying an additional 117 shares during the period. Precision Wealth Strategies LLC lifted its holdings in Oracle by 4.1% during the fourth quarter. Precision Wealth Strategies LLC now owns 3,951 shares of the enterprise software provider’s stock worth $417,000 after acquiring an additional 155 shares in the last quarter. Gilbert & Cook Inc. bought a new position in Oracle during the fourth quarter worth about $359,000. Finally, Aveo Capital Partners LLC acquired a new position in Oracle in the fourth quarter valued at about $290,000. 42.44% of the stock is currently owned by institutional investors.

Oracle Stock Performance

The company has a debt-to-equity ratio of 8.25, a current ratio of 0.71 and a quick ratio of 0.72. The company has a market cap of $429.42 billion, a price-to-earnings ratio of 42.00, a price-to-earnings-growth ratio of 2.56 and a beta of 1.01. The stock has a 50-day moving average price of $138.90 and a 200 day moving average price of $129.13.

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.