Oracle (NYSE:ORCL) Shares Down 7.8% After Earnings Miss

Oracle Co. (NYSE:ORCL - Get Free Report) dropped 7.8% on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $171.06 and last traded at $175.61. Approximately 12,076,645 shares were traded during mid-day trading, an increase of 45% from the average daily volume of 8,316,787 shares. The stock had previously closed at $190.45.

The enterprise software provider reported $1.47 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.48 by ($0.01). Oracle had a net margin of 20.40% and a return on equity of 171.38%. The company had revenue of $14.06 billion during the quarter, compared to analyst estimates of $14.12 billion. During the same quarter last year, the company posted $1.34 EPS. The business's revenue for the quarter was up 8.6% compared to the same quarter last year.

Oracle Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 23rd. Stockholders of record on Thursday, January 9th will be given a $0.40 dividend. The ex-dividend date is Thursday, January 9th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.90%. Oracle's payout ratio is currently 41.24%.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on ORCL shares. Stifel Nicolaus increased their price objective on shares of Oracle from $155.00 to $175.00 and gave the stock a "hold" rating in a research note on Tuesday. Bank of America raised their price target on Oracle from $155.00 to $175.00 and gave the stock a "neutral" rating in a report on Tuesday, September 10th. Melius Research upgraded Oracle from a "hold" rating to a "buy" rating in a research note on Monday, September 16th. Morgan Stanley increased their target price on Oracle from $145.00 to $175.00 and gave the stock an "equal weight" rating in a research report on Tuesday. Finally, JMP Securities reissued a "market outperform" rating and set a $205.00 price target on shares of Oracle in a report on Tuesday. Eleven equities research analysts have rated the stock with a hold rating and nineteen have assigned a buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $181.48.

Insider Transactions at Oracle

In related news, EVP Maria Smith sold 6,320 shares of Oracle stock in a transaction on Monday, September 16th. The stock was sold at an average price of $165.00, for a total transaction of $1,042,800.00. Following the completion of the sale, the executive vice president now owns 42,889 shares of the company's stock, valued at approximately $7,076,685. This trade represents a 12.84 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 42.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. DGS Capital Management LLC grew its position in shares of Oracle by 6.6% in the third quarter. DGS Capital Management LLC now owns 6,486 shares of the enterprise software provider's stock valued at $1,105,000 after purchasing an additional 399 shares during the last quarter. Copley Financial Group Inc. acquired a new position in shares of Oracle during the third quarter valued at about $546,000. Oddo BHF Asset Management Sas bought a new position in Oracle during the third quarter valued at about $1,242,000. Capasso Planning Partners LLC acquired a new position in Oracle in the 3rd quarter valued at approximately $207,000. Finally, Inspire Trust Co. N.A. lifted its position in shares of Oracle by 11.7% in the 3rd quarter. Inspire Trust Co. N.A. now owns 30,729 shares of the enterprise software provider's stock worth $5,236,000 after acquiring an additional 3,207 shares during the period. 42.44% of the stock is owned by institutional investors.

Oracle Price Performance

The company has a market cap of $492.53 billion, a price-to-earnings ratio of 45.81, a price-to-earnings-growth ratio of 3.49 and a beta of 1.03. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 6.68. The company has a fifty day moving average price of $179.76 and a two-hundred day moving average price of $154.67.

About Oracle

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.