Disappointing Guidance Drags Oracle Down

Angelo Anderson
September 17, 2017

Over the last three months, insiders have sold 1,817,500 shares of company stock valued at $91,582,600.

A number of other equities research analysts have also issued reports on the stock.

In the market the company is trading down from yesterday's close of 52.79. UBS AG reiterated a "buy" rating and issued a $52.00 price target (up previously from $48.00) on shares of Oracle Corporation in a research report on Thursday, June 22nd. Goldman Sachs Group, Inc. Finally, OTR Global upgraded shares of Oracle Corporation to a "positive" rating in a research note on Thursday, June 8th. Finally, Jefferies Group LLC reaffirmed a buy rating and set a $52.00 price objective on shares of Oracle Corporation in a research report on Friday, May 19th.

Oracle Corporation (NYSE ORCL) traded down 7.67% on Friday, reaching $48.74.

Investors are already paying almost 5.5 times next year's sales for Oracle shares, which are on the high side of historical levels. The firm's 50 day moving average price is $49.96 and its 200 day moving average price is $46.98.

Oracle Corporation's P/E ratio is 22.05 and market cap is 201.62B. Traders acquired 13,777 put options on the stock.

Oracle Corporation (NYSE:ORCL) last issued its quarterly earnings data on Thursday, September 14th. Oracle Corporation had a net margin of 24.74% and a return on equity of 20.90%. Total cloud business revenue rose 51 percent to $1.47 billion in the fiscal first quarter. During the same period in the previous year, the firm posted $0.55 EPS.

Revenue for the quarter was up 7% from a year ago.

Oracle now expected revenue to increase 2-4 percent to the range of $9.25 billion and $9.4 in the second quarter of the 2018 fiscal year, with 39-42 percent cloud revenue growth.

ILLEGAL ACTIVITY NOTICE: "Oracle Corporation (ORCL) Given Average Recommendation of "Buy" by Brokerages" was originally published by Week Herald and is the sole property of of Week Herald. The legal version of this piece can be viewed at https://stocknewstimes.com/2017/09/16/valuengine-upgrades-oracle-co-orcl-to-buy.html.

On Monday, July 17th, Hector Garcia-Molina sold 3,750 shares of Oracle Corporation stock. The shares were sold at an average price of $50.46, for a total transaction of $37,845,000.00. Following the transaction, the director now directly owns 18,125 shares in the company, valued at $807,831.25. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP W Corey West sold 150,000 shares of the company's stock in a transaction that occurred on Monday, June 26th. The shares were sold at an average price of $49.75, for a total transaction of $10,260,937.50. The disclosure for this sale can be found here.

At 16 times fiscal year 2018 EPS estimates of $2.94, Oracle's stock is valued at roughly $47, while at 14 times fiscal 2019 EPS estimates of $3.18, Oracle shares come down to $44.50. BT Investment Management Ltd purchased a new stake in shares of Oracle Corporation in the 2nd quarter valued at approximately $459,738,000. LLC now owns 2,161,149 shares of the enterprise software provider's stock valued at $108,360,000 after acquiring an additional 456,231 shares during the last quarter. Integrated Wealth Management raised its position in shares of Oracle Corporation by 9.0% in the first quarter. Acrospire Investment Management LLC now owns 1,990 shares of the enterprise software provider's stock valued at $100,000 after purchasing an additional 1,800 shares during the period. Farmers National Bank lifted its holdings in shares of Oracle Corporation by 8.9% in the 2nd quarter. New software license revenue continued to decline; it was down 6% for the quarter. Institutional investors and hedge funds own 58.67% of the company's stock.

Oracle Corporation (Oracle), launched on October 9, 2005, provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. Shares of the software company were falling by almost 6.5 percent midway through the trading day on September 15, after the company reported strong revenue growth for its cloud-based business, but delivered weaker-than-expected revenue guidance for the following quarter. Software-as-a-service (SaaS) recorded revenue growth of 62% while platform-as-a-service (PaaS) and infrastructure revenue rose 28%.

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