Investors Buy Oracle (ORCL) on Weakness After Insider Selling

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Investors purchased shares of Oracle Co. (NYSE:ORCL) on weakness during trading hours on Wednesday after an insider sold shares in the company. $75.66 million flowed into the stock on the tick-up and $37.92 million flowed out of the stock on the tick-down, for a money net flow of $37.74 million into the stock. Of all equities tracked, Oracle had the 27th highest net in-flow for the day. Oracle traded down ($0.11) for the day and closed at $54.48Specifically, Director Hector Garcia-Molina sold 3,750 shares of the company’s stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $51.54, for a total transaction of $193,275.00. Following the completion of the transaction, the director now directly owns 27,969 shares of the company’s stock, valued at $1,441,522.26. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Mark V. Hurd sold 1,200,000 shares of the company’s stock in a transaction dated Tuesday, March 19th. The shares were sold at an average price of $53.83, for a total transaction of $64,596,000.00. Following the transaction, the chief executive officer now directly owns 1,664,227 shares of the company’s stock, valued at $89,585,339.41. The disclosure for this sale can be found here. Insiders sold 1,773,750 shares of company stock valued at $95,395,063 over the last three months. 32.00% of the stock is currently owned by insiders.

Several equities analysts have recently commented on the stock. Zacks Investment Research raised shares of Oracle from a “sell” rating to a “hold” rating in a research note on Thursday, February 28th. Royal Bank of Canada upped their price objective on shares of Oracle to $57.00 and gave the company a “sector perform” rating in a research note on Friday, March 15th. DZ Bank reaffirmed a “sell” rating on shares of Oracle in a research note on Tuesday, March 19th. BNP Paribas assumed coverage on shares of Oracle in a research note on Friday, March 29th. They set a “neutral” rating and a $50.00 price objective for the company. Finally, Raymond James upped their price objective on shares of Oracle from $54.00 to $57.00 and gave the company an “outperform” rating in a research note on Friday, March 15th. Three equities research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and seven have given a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus target price of $52.53.

The company has a current ratio of 2.65, a quick ratio of 2.65 and a debt-to-equity ratio of 2.13. The stock has a market cap of $226.15 billion, a PE ratio of 19.33, a PEG ratio of 1.81 and a beta of 1.08.

Oracle (NYSE:ORCL) last announced its quarterly earnings results on Thursday, March 14th. The enterprise software provider reported $0.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.02. Oracle had a net margin of 27.14% and a return on equity of 34.03%. The company had revenue of $9.62 billion for the quarter, compared to analysts’ expectations of $9.59 billion. During the same quarter in the previous year, the company earned $0.83 earnings per share. Oracle’s quarterly revenue was down .7% on a year-over-year basis. On average, analysts expect that Oracle Co. will post 3.08 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 25th. Shareholders of record on Thursday, April 11th will be issued a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a yield of 1.76%. The ex-dividend date is Wednesday, April 10th. This is a boost from Oracle’s previous quarterly dividend of $0.19. Oracle’s dividend payout ratio is 34.04%.

A number of institutional investors and hedge funds have recently made changes to their positions in ORCL. Norges Bank purchased a new stake in Oracle in the fourth quarter worth about $1,235,719,000. Oregon Public Employees Retirement Fund grew its holdings in Oracle by 4,197.0% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 13,616,969 shares of the enterprise software provider’s stock worth $302,000 after purchasing an additional 13,300,077 shares during the period. Morgan Stanley grew its holdings in Oracle by 20.1% in the third quarter. Morgan Stanley now owns 19,959,479 shares of the enterprise software provider’s stock worth $1,029,110,000 after purchasing an additional 3,340,653 shares during the period. Los Angeles Capital Management & Equity Research Inc. grew its holdings in Oracle by 573.1% in the fourth quarter. Los Angeles Capital Management & Equity Research Inc. now owns 3,036,352 shares of the enterprise software provider’s stock worth $137,091,000 after purchasing an additional 2,585,272 shares during the period. Finally, MERIAN GLOBAL INVESTORS UK Ltd purchased a new stake in Oracle in the fourth quarter worth about $59,049,000. Institutional investors and hedge funds own 47.39% of the company’s stock.

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About Oracle (NYSE:ORCL)

Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure solutions for information technology (IT) environments worldwide. The company provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service.

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