Oracle (NYSE:ORCL) Shares Down 5.2% Following Weak Earnings

Oracle Co. (NYSE:ORCL - Get Free Report) fell 5.2% on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $137.70 and last traded at $141.10. 11,847,020 shares changed hands during trading, an increase of 0% from the average session volume of 11,831,542 shares. The stock had previously closed at $148.79.

The enterprise software provider reported $1.47 earnings per share for the quarter, missing the consensus estimate of $1.49 by ($0.02). The firm had revenue of $14.13 billion during the quarter, compared to analysts' expectations of $14.40 billion. Oracle had a return on equity of 133.25% and a net margin of 21.16%. Oracle's revenue for the quarter was up 6.4% on a year-over-year basis. During the same period in the previous year, the company earned $1.41 earnings per share.

Oracle Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 23rd. Investors of record on Thursday, April 10th will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 1.39%. This is a boost from Oracle's previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Thursday, April 10th. Oracle's dividend payout ratio is presently 39.12%.

Analyst Ratings Changes

Several brokerages recently weighed in on ORCL. BMO Capital Markets reduced their price target on Oracle from $205.00 to $175.00 and set a "market perform" rating on the stock in a research note on Tuesday. Cantor Fitzgerald cut their target price on Oracle from $214.00 to $175.00 and set an "overweight" rating on the stock in a research note on Tuesday. Mizuho increased their target price on Oracle from $185.00 to $210.00 and gave the stock an "outperform" rating in a research note on Tuesday, December 10th. Stifel Nicolaus cut their target price on Oracle from $175.00 to $150.00 and set a "hold" rating on the stock in a research note on Tuesday. Finally, KeyCorp reissued an "overweight" rating and issued a $200.00 target price on shares of Oracle in a research note on Tuesday. Twelve analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $178.92.

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Insider Buying and Selling

In other Oracle news, CEO Safra Catz sold 2,101,154 shares of the firm's stock in a transaction that occurred on Wednesday, January 22nd. The stock was sold at an average price of $185.35, for a total transaction of $389,448,893.90. Following the completion of the transaction, the chief executive officer now owns 1,118,592 shares in the company, valued at $207,331,027.20. This trade represents a 65.26 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 42.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Oracle

Several institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its stake in shares of Oracle by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 157,411,949 shares of the enterprise software provider's stock valued at $26,231,127,000 after purchasing an additional 2,296,069 shares during the last quarter. State Street Corp lifted its stake in shares of Oracle by 2.7% in the 3rd quarter. State Street Corp now owns 70,441,556 shares of the enterprise software provider's stock valued at $12,003,241,000 after purchasing an additional 1,847,561 shares during the last quarter. FMR LLC lifted its stake in shares of Oracle by 0.4% in the 4th quarter. FMR LLC now owns 38,002,902 shares of the enterprise software provider's stock valued at $6,332,803,000 after purchasing an additional 156,269 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Oracle by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 35,814,302 shares of the enterprise software provider's stock worth $5,954,961,000 after acquiring an additional 619,619 shares during the last quarter. Finally, Franklin Resources Inc. raised its position in Oracle by 9.3% during the 4th quarter. Franklin Resources Inc. now owns 20,202,421 shares of the enterprise software provider's stock valued at $3,366,531,000 after purchasing an additional 1,722,037 shares in the last quarter. 42.44% of the stock is owned by institutional investors.

Oracle Trading Down 3.0 %

The stock has a 50-day simple moving average of $166.82 and a two-hundred day simple moving average of $169.62. The firm has a market capitalization of $403.58 billion, a P/E ratio of 35.28, a price-to-earnings-growth ratio of 3.46 and a beta of 1.07. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 5.65.

Oracle Company Profile

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing.