Zacks Investment Research Downgrades Oracle Corporation (ORCL) to Sell

Oracle Corporation (NYSE:ORCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.

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 equities analysts have also issued reports on ORCL. Jefferies Group LLC reissued a “buy” rating and issued a $52.00 price target on shares of Oracle Corporation in a report on Tuesday, June 20th. Rosenblatt Securities reissued a “buy” rating and issued a $55.00 price target on shares of Oracle Corporation in a report on Wednesday, June 21st. BMO Capital Markets boosted their price target on shares of Oracle Corporation from $48.00 to $57.00 and gave the company an “outperform” rating in a report on Thursday, June 22nd. Wedbush raised shares of Oracle Corporation from a “neutral” rating to an “outperform” rating and decreased their price target for the company from $56.00 to $44.00 in a report on Thursday, June 22nd. Finally, UBS AG reissued a “buy” rating and issued a $52.00 price target (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. Three analysts have rated the stock with a sell rating, eleven have given a hold rating and thirty-one have issued a buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $53.37.

Oracle Corporation (ORCL) traded up 0.8068% during mid-day trading on Tuesday, hitting $49.2542. The stock had a trading volume of 7,360,254 shares. Oracle Corporation has a 1-year low of $37.64 and a 1-year high of $53.14. The company has a 50-day moving average price of $49.43 and a 200 day moving average price of $47.69. The company has a market cap of $205.54 billion, a P/E ratio of 21.4242 and a beta of 1.05.

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

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In related news, EVP Dorian Daley sold 25,776 shares of the stock in a transaction that occurred on Thursday, September 21st. The shares were sold at an average price of $48.05, for a total value of $1,238,536.80. Following the completion of the transaction, the executive vice president now owns 30,977 shares of the company’s stock, valued at approximately $1,488,444.85. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director George H. Conrades sold 56,250 shares of the stock in a transaction that occurred on Friday, September 22nd. The shares were sold at an average price of $48.25, for a total transaction of $2,714,062.50. Following the completion of the transaction, the director now directly owns 66,250 shares of the company’s stock, valued at approximately $3,196,562.50. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 305,776 shares of company stock valued at $14,822,112. 29.00% of the stock is currently owned by insiders.

A number of large investors have recently modified their holdings of the stock. Hudock Capital Group LLC lifted its stake in Oracle Corporation by 0.3% in the 1st quarter. Hudock Capital Group LLC now owns 3,997 shares of the enterprise software provider’s stock valued at $178,000 after purchasing an additional 10 shares during the last quarter. Keel Point LLC lifted its stake in Oracle Corporation by 0.3% in the 2nd quarter. Keel Point LLC now owns 5,349 shares of the enterprise software provider’s stock valued at $268,000 after purchasing an additional 14 shares during the last quarter. Alpha Windward LLC lifted its stake in Oracle Corporation by 0.3% in the 2nd quarter. Alpha Windward LLC now owns 5,568 shares of the enterprise software provider’s stock valued at $279,000 after purchasing an additional 19 shares during the last quarter. Joel Isaacson & Co. LLC lifted its stake in Oracle Corporation by 0.3% in the 2nd quarter. Joel Isaacson & Co. LLC now owns 8,197 shares of the enterprise software provider’s stock valued at $411,000 after purchasing an additional 24 shares during the last quarter. Finally, Flagship Harbor Advisors LLC lifted its stake in Oracle Corporation by 0.4% in the 2nd quarter. Flagship Harbor Advisors LLC now owns 8,110 shares of the enterprise software provider’s stock valued at $404,000 after purchasing an additional 35 shares during the last quarter. 57.83% of the stock is owned by institutional investors and hedge funds.

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.

Analyst Recommendations for Oracle Corporation (NYSE:ORCL)

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