Oracle (NYSE:ORCL) Shares Gap Down After Earnings Miss

Oracle Co. (NYSE:ORCL) gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $190.45, but opened at $173.46. Oracle shares last traded at $174.54, with a volume of 6,421,677 shares trading hands.

The enterprise software provider reported $1.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.01). The firm had revenue of $14.06 billion during the quarter, compared to analyst estimates of $14.12 billion. Oracle had a net margin of 20.40% and a return on equity of 171.38%. The firm’s revenue for the quarter was up 8.6% compared to the same quarter last year. During the same period last year, the company earned $1.34 earnings per share.

Oracle Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 23rd. Investors of record on Thursday, January 9th will be given a $0.40 dividend. The ex-dividend date is Thursday, January 9th. This represents a $1.60 dividend on an annualized basis and a yield of 0.90%. Oracle’s payout ratio is currently 41.24%.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on ORCL shares. JPMorgan Chase & Co. raised their price target on Oracle from $110.00 to $120.00 and gave the stock a “neutral” rating in a research report on Monday, September 9th. Melius Research upgraded Oracle from a “hold” rating to a “buy” rating in a research note on Monday, September 16th. Citigroup raised their price target on Oracle from $157.00 to $194.00 and gave the stock a “neutral” rating in a report on Tuesday. Sanford C. Bernstein increased their price target on Oracle from $201.00 to $202.00 and gave the stock an “outperform” rating in a research note on Monday, September 30th. Finally, TD Cowen raised their target price on shares of Oracle from $165.00 to $180.00 and gave the company a “buy” rating in a research note on Tuesday, September 10th. Twelve investment analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $181.48.

Insider Activity at Oracle

In other news, EVP Maria Smith sold 6,320 shares of Oracle stock in a transaction dated Monday, September 16th. The shares were sold at an average price of $165.00, for a total transaction of $1,042,800.00. Following the completion of the transaction, the executive vice president now directly owns 42,889 shares in the company, valued at $7,076,685. This trade represents a 12.84 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 42.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Oracle

Several hedge funds have recently modified their holdings of the company. Activest Wealth Management increased its stake in shares of Oracle by 21.9% during the 3rd quarter. Activest Wealth Management now owns 312 shares of the enterprise software provider’s stock worth $53,000 after purchasing an additional 56 shares during the last quarter. Second Line Capital LLC boosted its position in Oracle by 1.5% during the third quarter. Second Line Capital LLC now owns 3,816 shares of the enterprise software provider’s stock worth $650,000 after purchasing an additional 58 shares during the period. Cadence Bank grew its stake in Oracle by 0.8% in the 3rd quarter. Cadence Bank now owns 7,605 shares of the enterprise software provider’s stock valued at $1,296,000 after buying an additional 59 shares in the last quarter. Eagle Rock Investment Company LLC grew its position in shares of Oracle by 0.4% in the third quarter. Eagle Rock Investment Company LLC now owns 17,626 shares of the enterprise software provider’s stock valued at $3,003,000 after purchasing an additional 64 shares in the last quarter. Finally, W Advisors LLC raised its stake in shares of Oracle by 3.1% during the 3rd quarter. W Advisors LLC now owns 2,158 shares of the enterprise software provider’s stock valued at $368,000 after purchasing an additional 64 shares during the period. Institutional investors own 42.44% of the company’s stock.

Oracle Trading Down 6.7 %

The company has a debt-to-equity ratio of 6.68, a quick ratio of 0.72 and a current ratio of 0.72. The firm has a market cap of $492.53 billion, a P/E ratio of 45.81, a P/E/G ratio of 3.49 and a beta of 1.03. The firm has a 50 day simple moving average of $179.76 and a 200 day simple moving average of $154.67.

About Oracle

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.