Oracle Stock (ORCL) Earns “Moderate Buy” Consensus as Wall Street Rallies, Price Targets Raised

NEW YORK, NY – Oracle Corporation (NYSE:ORCL) is experiencing a wave of bullish sentiment from Wall Street, with a string of analyst upgrades and increased price targets following a strong quarterly earnings report. The enterprise software giant has secured a consensus rating of “Moderate Buy” from thirty-three covering firms, signaling strong confidence in its growth trajectory, particularly in the cloud and AI sectors.

The stock, which opened at $205.06 on Friday, is trading near its one-year high of $216.60, a clear reflection of the market’s positive reception. This performance is a stark contrast to its one-year low of $118.86, underscoring a powerful upward trend.

Wall Street Analysts Turn More Bullish on ORCL

Recent commentary from research analysts has been overwhelmingly positive. Of the thirty-three firms covering the stock, twenty-one have issued a buy recommendation and two have a strong buy recommendation, against just ten hold ratings.

Several prominent firms have recently weighed in, boosting their outlooks for Oracle:

• Westpark Capital significantly increased its price objective from

  246.00**, maintaining a “buy” rating. 

• BMO Capital Markets upgraded Oracle from a “market perform” to an “outperform” rating, raising its price target to $235.00.

• Jefferies Financial Group upped its price objective to $200.00 with a “buy” rating.

• Citigroup and Evercore ISI both reiterated “buy” and “outperform” ratings, respectively.

The average one-year price target among these brokerages now stands at $196.74, though recent upgrades suggest this consensus may trend higher.

Strong Earnings and Revenue Growth Fuel Optimism

The analyst optimism is directly fueled by Oracle’s impressive financial performance. In its last earnings report on June 11th, the company announced:

• Earnings Per Share (EPS): $1.70, beating the consensus estimate of $1.64.

• Revenue: $15.90 billion, surpassing the consensus estimate of $15.58 billion.

• Year-Over-Year Growth: Revenue climbed 11.3% compared to the same quarter last year.

Furthermore, Oracle announced a quarterly dividend of $0.50 per share, which represents a $2.00 annualized dividend and a yield of 0.98%, rewarding shareholders while it continues to grow.

Insider Activity and Financial Health: A Closer Look

While the outlook is bright, investors are keeping a close eye on recent insider activity. Over the last 90 days, insiders have sold 442,366 shares worth over

76.1 million sale by Vice Chairman Jeffrey Henley** and a $3.2 million sale by insider Clayton M. Magouyrk.

However, it’s critical to note that insiders still own 42.20% of the company’s stock, an exceptionally high figure that indicates a massive vested interest in Oracle’s long-term success. The company’s market cap stands at a robust $573.53 billion. While its P/E ratio is elevated at 47.25, analysts forecast continued earnings growth that could justify the premium valuation.

With institutional investors and insiders each holding over 42% of the stock, Oracle presents a unique ownership structure backed by both sophisticated money managers and its own leadership.

Frequently Asked Questions (FAQ)

1. What is the consensus rating for Oracle (ORCL) stock?
Oracle has received a consensus rating of “Moderate Buy” from the thirty-three analysts covering the stock.

2. Why are analysts positive about Oracle?
Analysts are bullish due to Oracle’s strong quarterly earnings beat, 11.3% year-over-year revenue growth, and its strategic position in the high-growth cloud and AI markets, which has led to numerous price target increases.

3. What were Oracle’s latest earnings results?
Oracle reported earnings per share (EPS) of $1.70 on $15.90 billion in revenue, beating analyst estimates of $1.64 EPS and $15.58 billion in revenue.

4. What are some of the new price targets for ORCL?
Recent upgrades include Westpark Capital raising its target to $246.00, BMO Capital Markets to $235.00, and Jefferies Financial Group to $200.00.

5. Is Oracle stock considered expensive?
Based on its price-to-earnings (P/E) ratio of 47.25 and a Price/Earnings to Growth (PEG) ratio of 3.08, the stock is trading at a premium valuation. This suggests investors are paying a higher price in anticipation of strong future earnings growth.

6. Does Oracle pay a dividend?
Yes. Oracle recently announced a quarterly dividend of $0.50 per share. This amounts to an annualized dividend of $2.00 per share, for a dividend yield of approximately 0.98%.

7. Should I be concerned about the recent insider selling?
While significant insider sales have occurred (totaling over $83 million), it’s important to consider the context. Insiders still own a very high 42.20% of the company. The sales could be for personal financial planning or portfolio diversification, and the remaining massive stake shows continued confidence.

8. Who owns most of Oracle’s stock?
Ownership is uniquely split. Institutional investors own 42.44% of the stock, while corporate insiders own a nearly equal 42.20%. This high insider ownership is unusual for a company of this size.

9. What is Oracle’s stock ticker and 52-week price range?
The stock trades on the New York Stock Exchange under the ticker NYSE:ORCL. Its one-year range is between a low of $118.86 and a high of $216.60.

10. What are some of the financial risks for Oracle?
The primary risks highlighted by the data are its high valuation (P/E ratio of 47.25) and its high debt-to-equity ratio of 4.07, which indicates the company uses significant debt to finance its assets compared to shareholder equity.

11. What do Oracle’s moving averages indicate?
The stock opened at 160.39) and its 200-day moving average ($161.33). This indicates very strong, positive short-term and long-term price momentum.

12. What does Oracle Corporation do?
Oracle is an enterprise software provider, best known for its database software and technology, cloud engineered systems, and enterprise software products, such as enterprise resource planning (ERP) and customer relationship management (CRM) software.