Oracle Corporation (ORCL) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of Oracle Corporation (NYSE:ORCL) from a hold rating to a sell rating in a research report report published on Tuesday morning.

According to Zacks, “Oracle's first-quarter fiscal 2018 results were impressive. The company is benefiting from significant momentum in the SaaS offerings. The company stated that it is wining market share against salesforce.com and Workday. We believe the company’s growing cloud market share will continue to drive top-line growth in the foreseeable future. Moreover, the upcoming launch of the next-generation autonomous database, which is supported by machine learning, is a key catalyst. However, soft outlook for the second quarter reflects slowing cloud momentum, particualrly due to increasing competition from Microsoft Azure and Amazon Web Services. Moreover, higher investments on PaaS and IaaS will keep margins under pressure in the near term. We note that the stock has underperformed the industry on a year-to-date basis.”

Several other analysts also recently commented on ORCL. UBS AG reaffirmed a buy rating and set a $52.00 target price (up previously from $48.00) on shares of Oracle Corporation in a report on Thursday, June 22nd. They noted that the move was a valuation call. BidaskClub downgraded shares of Oracle Corporation from a buy rating to a hold rating in a report on Wednesday, August 9th. Drexel Hamilton reaffirmed a buy rating and set a $62.00 target price on shares of Oracle Corporation in a report on Monday, October 2nd. BTIG Research reaffirmed a buy rating and set a $58.00 target price on shares of Oracle Corporation in a report on Tuesday, September 19th. Finally, Jefferies Group LLC reaffirmed a buy rating and set a $52.00 target price on shares of Oracle Corporation in a report on Tuesday, June 20th. Three analysts have rated the stock with a sell rating, ten have issued a hold rating and thirty-two have given a buy rating to the stock. The stock presently has a consensus rating of Buy and an average price target of $53.37.

Oracle Corporation (ORCL) traded down 0.18% on Tuesday, reaching $49.26. 10,499,500 shares of the company’s stock were exchanged. The firm’s 50-day moving average is $49.40 and its 200-day moving average is $47.77. The firm has a market cap of $205.56 billion, a PE ratio of 21.43 and a beta of 1.05. Oracle Corporation has a 12 month low of $37.64 and a 12 month high of $53.14.

Oracle Corporation (NYSE:ORCL) last announced its quarterly earnings data on Thursday, September 14th. The enterprise software provider reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.60 by $0.02. The company had revenue of $9.21 billion during the quarter, compared to the consensus estimate of $9.03 billion. Oracle Corporation had a net margin of 25.34% and a return on equity of 20.55%. The company’s quarterly revenue was up 7.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.55 EPS. On average, equities analysts forecast that Oracle Corporation will post $2.94 earnings per share for the current year.

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The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 25th. Stockholders of record on Wednesday, October 11th will be issued a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 1.54%. The ex-dividend date is Tuesday, October 10th. Oracle Corporation’s payout ratio is 33.19%.

In other Oracle Corporation news, EVP Dorian Daley sold 25,776 shares of Oracle Corporation stock in a transaction that occurred on Thursday, September 21st. The shares were sold at an average price of $48.05, for a total transaction of $1,238,536.80. Following the transaction, the executive vice president now directly owns 30,977 shares of the company’s stock, valued at $1,488,444.85. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Hector Garcia-Molina sold 3,750 shares of Oracle Corporation stock in a transaction that occurred on Tuesday, August 15th. The stock was sold at an average price of $48.86, for a total transaction of $183,225.00. Following the transaction, the director now directly owns 18,125 shares in the company, valued at $885,587.50. The disclosure for this sale can be found here. Insiders sold 305,776 shares of company stock worth $14,822,112 over the last ninety days. 29.00% of the stock is currently owned by insiders.

Hedge funds have recently bought and sold shares of the business. Acrospire Investment Management LLC grew its holdings in shares of Oracle Corporation by 947.4% in the second quarter. Acrospire Investment Management LLC now owns 1,990 shares of the enterprise software provider’s stock worth $100,000 after purchasing an additional 1,800 shares during the last quarter. Burt Wealth Advisors grew its holdings in shares of Oracle Corporation by 4.3% in the second quarter. Burt Wealth Advisors now owns 2,151 shares of the enterprise software provider’s stock worth $107,000 after purchasing an additional 88 shares during the last quarter. IHT Wealth Management LLC grew its holdings in shares of Oracle Corporation by 65.9% in the second quarter. IHT Wealth Management LLC now owns 2,383 shares of the enterprise software provider’s stock worth $154,000 after purchasing an additional 947 shares during the last quarter. Baystate Wealth Management LLC grew its holdings in shares of Oracle Corporation by 9.2% in the second quarter. Baystate Wealth Management LLC now owns 2,439 shares of the enterprise software provider’s stock worth $123,000 after purchasing an additional 206 shares during the last quarter. Finally, Mitsubishi UFJ Securities Holdings Co. Ltd. grew its holdings in shares of Oracle Corporation by 1,150.0% in the first quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 2,500 shares of the enterprise software provider’s stock worth $112,000 after purchasing an additional 2,300 shares during the last quarter. 57.83% of the stock is currently owned by hedge funds and other institutional investors.

About Oracle Corporation

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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