Is Oracle Corporation (NYSE: ORCL) Back In The Buying Zone?


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Oracle Corporation (NYSE:ORCL). The institutional investor has increased its shareholding in the Technology company by 10.02% to 179.18 million shares with purchase of 16.31 million shares. This fresh investment now brings its stake to 5.84% valued currently at $9.94 billion. In addition, BlackRock Fund Advisors raised its holdings by 1.24 million to 107.88 million shares. And Loomis, Sayles & Co. LP has lifted its position by 1.53% or 0.57 million shares – to 37.55 million shares.

    With over 8.58 million Oracle Corporation (ORCL) shares trading Friday and a closing price of $57.88 on the day, the dollar volume was approximately $496.38 million. The shares have shown a positive weekly performance of 4.87% and its price on 08/28/20 gained nearly 1.22%. Currently, there are 3.09B common shares owned by the public and among those 1.92B shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 29 analysts who have offered their price forecasts for ORCL have a consensus price objective of $56.37. The analysts have set the share’s price value over the next 12 months at a high of $70.00 and a low of $44.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Oracle Corporation stock is 2.70 for the next 12 months. The average price target is -5.03% below its last price level and a downside to the estimated low will see the stock lose -31.55% over that period. But an upside of 17.31% will see the stock hit the forecast high price target while mean target price for the stock is $56.00.

    Insiders at the company have transacted a total of 94 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 51 of these insider trades were purchases, accounting for 14,306,115 shares. Insider sales of the common stock occurred on 43 occasions, with total insider shares sold totaling 14,022,075 shares.

    The top 3 mutual fund holders in Oracle Corporation are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and SPDR S&P 500 ETF. Vanguard Total Stock Market Index owns 58.26 million shares of the company’s stock, all valued at over $3.23 billion. The company sold -0.16 million shares recently to bring their total holdings to about 1.90% of the shares outstanding. Vanguard 500 Index Fund sold -0.26 million shares to see its total holdings shrink to 42.92 million shares valued at over $2.38 billion and representing 1.40% of the shares outstanding. SPDR S&P 500 ETF bought 45144.0 shares to bring its total holdings to over 22.33 million shares at a value of $1.24 billion. SPDR S&P 500 ETF now owns shares totaling to 0.73% of the shares outstanding.

    Shares of Oracle Corporation (NYSE: ORCL) opened at $57.33, up $0.15 from a prior closing price of $57.18. However, the script later closed the day at $57.88, up 1.22%. The company’s stock has a 5-day price change of 4.87% and 9.08% over the past three months. ORCL shares are trading 9.25% year to date (YTD), with the 12-month market performance up to 10.97% higher. It has a 12-month low price of $39.71 and touched a high of $58.45 over the same period. Currently, 8.58 million shares have been traded, compared to an average intraday trading volume of 12.70 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.51%, 4.21%, and 8.24% respectively.

    Institutional ownership of Oracle Corporation (NYSE: ORCL) shares accounts for 50.10% of the company’s 3.09B shares outstanding. Mutual fund holders own 25.81%, while other institutional holders and individual stakeholders account for 37.45% and 24.34% respectively.

    It has a market capitalization of $175.47B and a beta (3y monthly) value of 0.82. The stock’s trailing 12-month PE ratio is 18.73, while the earnings-per-share (ttm) stands at $3.09. The company has a PEG of 2.07 and a Quick Ratio of 3.00 with the debt-to-equity ratio at 5.93. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.01% over the week and 1.70% over the month.

    Analysts forecast that Oracle Corporation (ORCL) will achieve an EPS of $0.86 for the current quarter, $0.94 for the next quarter and $4.42 for 2022. The lowest estimate earnings-per-share for the quarter is $0.84 while analysts give the company a high EPS estimate of $0.88. Comparatively, EPS for the current quarter was $0.81 a year ago. Earnings per share for the fiscal year are expected to increase by 7.40%, and 9.35% over the next financial year. EPS should grow at an annualized rate of 9.04% over the next five years, compared to 6.90% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 29 brokerage firm advisors rate Oracle Corporation (ORCL) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 20 of the 29 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the ORCL, a number of firms have released research notes about the stock. Argus stated their Hold rating for the stock in a research note on June 19, 2020, with the firm’s price target at. Exane BNP Paribas coverage for the Oracle Corporation (ORCL) stock in a research note released on June 01, 2020 offered a Neutral rating with a price target of $56. Exane BNP Paribas was of a view on March 31, 2020 that the stock is Outperform, while JP Morgan gave the stock Overweight rating on March 20, 2020, issuing a price target of $55. BMO Capital Markets on their part issued Market Perform rating on March 13, 2020.


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