Royal Bank of Canada Lowers Oracle (ORCL) to Sector Perform

Royal Bank of Canada downgraded shares of Oracle (NYSE:ORCL) from an outperform rating to a sector perform rating in a research report released on Friday.

Several other research analysts have also recently weighed in on ORCL. UBS set a $55.00 target price on Oracle and gave the stock a neutral rating in a report on Friday. Jefferies Group set a $61.00 target price on Oracle and gave the stock a buy rating in a report on Friday. Drexel Hamilton restated a buy rating and set a $62.00 target price on shares of Oracle in a report on Tuesday, December 12th. Vetr cut Oracle from a buy rating to a hold rating and set a $52.33 target price on the stock. in a report on Monday, December 11th. Finally, Zacks Investment Research cut Oracle from a buy rating to a hold rating in a report on Thursday, August 17th. Fourteen analysts have rated the stock with a hold rating and twenty-seven have given a buy rating to the company’s stock. The company currently has an average rating of Buy and an average target price of $55.26.

Shares of Oracle (NYSE:ORCL) opened at $47.71 on Friday. The company has a quick ratio of 3.61, a current ratio of 3.63 and a debt-to-equity ratio of 0.86. Oracle has a twelve month low of $38.30 and a twelve month high of $53.14. The stock has a market capitalization of $199,120.00, a PE ratio of 18.44, a P/E/G ratio of 1.84 and a beta of 1.05.

Oracle (NYSE:ORCL) last posted its quarterly earnings data on Thursday, December 14th. The enterprise software provider reported $0.70 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.68 by $0.02. The company had revenue of $9.63 billion for the quarter, compared to analysts’ expectations of $9.57 billion. Oracle had a return on equity of 20.72% and a net margin of 25.48%. Oracle’s revenue was up 6.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.61 EPS. equities research analysts anticipate that Oracle will post 2.68 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 24th. Stockholders of record on Wednesday, January 10th will be given a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 1.59%. The ex-dividend date of this dividend is Tuesday, January 9th. Oracle’s payout ratio is presently 32.62%.

Oracle announced that its Board of Directors has initiated a share repurchase plan on Thursday, December 14th that permits the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization permits the enterprise software provider to buy shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

In other Oracle news, Director Hector Garcia-Molina sold 3,750 shares of the business’s stock in a transaction that occurred on Friday, December 15th. The stock was sold at an average price of $48.40, for a total value of $181,500.00. Following the sale, the director now owns 18,125 shares of the company’s stock, valued at $877,250. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Jeffrey Berg sold 45,000 shares of the business’s stock in a transaction that occurred on Thursday, September 21st. The shares were sold at an average price of $48.03, for a total value of $2,161,350.00. The disclosure for this sale can be found here. In the last three months, insiders sold 305,776 shares of company stock worth $14,814,687. 29.00% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Morningstar Investment Services LLC increased its position in shares of Oracle by 0.8% during the first quarter. Morningstar Investment Services LLC now owns 1,122,953 shares of the enterprise software provider’s stock worth $50,095,000 after acquiring an additional 9,398 shares during the period. DE Burlo Group Inc. purchased a new stake in shares of Oracle during the first quarter worth $205,000. Allegis Investment Advisors LLC increased its position in shares of Oracle by 172.5% during the first quarter. Allegis Investment Advisors LLC now owns 17,767 shares of the enterprise software provider’s stock worth $793,000 after acquiring an additional 11,248 shares during the period. Lincoln National Corp increased its position in shares of Oracle by 6.3% during the first quarter. Lincoln National Corp now owns 9,422 shares of the enterprise software provider’s stock worth $420,000 after acquiring an additional 555 shares during the period. Finally, Thomaspartners Inc. increased its position in shares of Oracle by 9.5% during the first quarter. Thomaspartners Inc. now owns 4,337,983 shares of the enterprise software provider’s stock worth $193,517,000 after acquiring an additional 374,570 shares during the period. 57.70% of the stock is currently owned by institutional investors.

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About Oracle

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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