Traders Purchase Large Volume of Call Options on Oracle (NYSE:ORCL)

Oracle Corporation (NYSE:ORCL) was the recipient of some unusual options trading on Tuesday. Investors bought 112,104 call options on the stock. This represents an increase of approximately 42% compared to the typical daily volume of 79,181 call options.

Oracle Trading Down 1.5%

Shares of ORCL opened at $207.85 on Wednesday. Oracle has a 12 month low of $118.86 and a 12 month high of $216.60. The stock has a market cap of $581.34 billion, a PE ratio of 47.89, a P/E/G ratio of 3.13 and a beta of 1.32. The company has a debt-to-equity ratio of 4.07, a current ratio of 0.75 and a quick ratio of 1.02. The stock’s 50-day moving average is $155.97 and its two-hundred day moving average is $160.82.

Oracle (NYSE:ORCL) last announced its earnings results on Wednesday, June 11th. The enterprise software provider reported $1.70 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.64 by $0.06. Oracle had a return on equity of 87.34% and a net margin of 21.68%. The business had revenue of $15.90 billion for the quarter, compared to analyst estimates of $15.58 billion. During the same period in the previous year, the company earned $1.63 earnings per share. The company’s revenue for the quarter was up 11.3% compared to the same quarter last year. Equities analysts forecast that Oracle will post 5 earnings per share for the current fiscal year.

Oracle Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 24th. Investors of record on Thursday, July 10th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 0.96%. The ex-dividend date of this dividend is Thursday, July 10th. Oracle’s dividend payout ratio is currently 46.08%.

Analyst Ratings Changes

Several equities research analysts recently issued reports on ORCL shares. Bank of America boosted their price objective on Oracle from $156.00 to $220.00 and gave the company a “neutral” rating in a report on Thursday, June 12th. Morgan Stanley reiterated a “positive” rating on shares of Oracle in a report on Monday, June 9th. Royal Bank Of Canada boosted their price objective on Oracle from $145.00 to $195.00 and gave the company a “sector perform” rating in a report on Thursday, June 12th. Wall Street Zen downgraded Oracle from a “buy” rating to a “hold” rating in a report on Wednesday, February 19th. Finally, Monness Crespi & Hardt upgraded Oracle from a “sell” rating to a “neutral” rating in a report on Monday, March 3rd. Eleven investment analysts have rated the stock with a hold rating, twenty-one have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $194.32.

Insider Activity

In related news, Director Naomi O. Seligman sold 2,000 shares of Oracle stock in a transaction dated Wednesday, April 2nd. The stock was sold at an average price of $145.81, for a total transaction of $291,620.00. Following the completion of the sale, the director now owns 34,630 shares of the company’s stock, valued at $5,049,400.30. The trade was a 5.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Leon E. Panetta sold 5,000 shares of Oracle stock in a transaction that occurred on Friday, April 11th. The shares were sold at an average price of $129.77, for a total value of $648,850.00. Following the transaction, the director now owns 58,090 shares of the company’s stock, valued at approximately $7,538,339.30. This represents a 7.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 427,366 shares of company stock worth $80,183,723. Company insiders own 42.20% of the company’s stock.

Hedge Funds Weigh In On Oracle

A number of hedge funds and other institutional investors have recently bought and sold shares of ORCL. Sunbeam Capital Management LLC acquired a new position in shares of Oracle during the fourth quarter worth approximately $30,000. Hurley Capital LLC acquired a new stake in shares of Oracle during the 4th quarter valued at $33,000. Redmont Wealth Advisors LLC acquired a new stake in shares of Oracle during the 1st quarter valued at $27,000. Inlight Wealth Management LLC acquired a new stake in Oracle during the 1st quarter valued at $28,000. Finally, Iron Horse Wealth Management LLC raised its stake in Oracle by 284.9% during the 1st quarter. Iron Horse Wealth Management LLC now owns 204 shares of the enterprise software provider’s stock valued at $29,000 after purchasing an additional 151 shares during the period. 42.44% of the stock is currently owned by institutional investors and hedge funds.

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.