Oracle (NYSE:ORCL) Shares Gap Down – Should You Sell?

Shares of Oracle Corporation (NYSE:ORCL) gapped down prior to trading on Friday . The stock had previously closed at $178.18, but opened at $172.62. Oracle shares last traded at $175.6340, with a volume of 5,141,560 shares traded.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle secured a ~15% stake and “Trusted Technology Partner” role in the newly spun‑off U.S. TikTok joint venture, which effectively locks TikTok as a large, long‑term tenant for Oracle Cloud Infrastructure (OCI) and helps justify Oracle’s big data‑center buildouts. This deal is being framed as an infrastructure revenue win rather than a consumer pivot. Oracle’s TikTok Win Isn’t Social Media—It’s a Cloud Power Move
• Neutral Sentiment: Options activity shows sizable bullish bets (whale positions) in Oracle, signaling some traders expect upside or are using derivatives for directional/speculative exposure — this can amplify moves but is not fundamental. This Is What Whales Are Betting On Oracle
• Negative Sentiment: Multiple law firms (Rosen, others) have publicized or filed class actions tied to Oracle’s senior‑note offerings and disclosures about debt used to fund AI/data‑center projects — this litigation creates headline risk and could pressure the stock if claims advance. ROSEN, TOP-RANKED INVESTOR RIGHTS COUNSEL, Encourages Oracle Corporation Investors to Secure Counsel in Securities Class Action – ORCL
• Negative Sentiment: Morgan Stanley flagged that Oracle’s aggressive AI‑infrastructure buildout could create downside risk to EPS targets if spending and revenue cadence diverge from analyst expectations — a reminder that capital intensity and execution timing matter for near‑term earnings. Morgan Stanley finds Oracle’s AI infrastructure buildout creates risk for EPS targets
• Negative Sentiment: High‑profile short/skeptical investors (reported Michael Burry position) and reports that Wall Street showed diminished appetite for some Stargate‑related debt deals have amplified concerns about Oracle’s funding model and liquidity, adding selling pressure. Michael Burry Bets Against Oracle — Should You Sell ORCL Stock Now? • Wall Street is losing its appetite for Oracle’s data center debt

Wall Street Analyst Weigh In

ORCL has been the subject of a number of research analyst reports. Sanford C. Bernstein decreased their price target on shares of Oracle from $364.00 to $339.00 and set an “outperform” rating for the company in a report on Thursday, December 11th. JPMorgan Chase & Co. reduced their target price on Oracle from $270.00 to $230.00 and set a “neutral” rating for the company in a research note on Thursday, December 11th. DA Davidson lowered their price target on Oracle from $200.00 to $180.00 and set a “neutral” rating for the company in a research report on Thursday, December 11th. KeyCorp dropped their price target on Oracle from $350.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday, December 11th. Finally, Oppenheimer restated a “market perform” rating on shares of Oracle in a research note on Thursday, December 11th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $300.46.

Oracle Stock Down 0.6%

The company has a debt-to-equity ratio of 3.28, a quick ratio of 0.91 and a current ratio of 0.91. The firm has a market cap of $508.88 billion, a price-to-earnings ratio of 33.29, a PEG ratio of 1.56 and a beta of 1.65. The business’s 50 day moving average price is $198.36 and its 200 day moving average price is $239.55.

Oracle (NYSE:ORCL) last announced its quarterly earnings results on Wednesday, December 10th. The enterprise software provider reported $2.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.64 by $0.62. The firm had revenue of $16.06 billion for the quarter, compared to the consensus estimate of $16.19 billion. Oracle had a net margin of 25.28% and a return on equity of 70.60%. The firm’s quarterly revenue was up 14.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.47 earnings per share. On average, equities analysts forecast that Oracle Corporation will post 5 EPS for the current year.

Oracle Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, January 9th were given a $0.50 dividend. The ex-dividend date was Friday, January 9th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.1%. Oracle’s payout ratio is 37.59%.

Insider Buying and Selling

In other Oracle news, Director Naomi O. Seligman sold 2,223 shares of the company’s stock in a transaction on Tuesday, December 23rd. The shares were sold at an average price of $196.61, for a total transaction of $437,064.03. Following the completion of the transaction, the director directly owned 25,596 shares in the company, valued at approximately $5,032,429.56. This represents a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Mark Hura sold 15,000 shares of the business’s stock in a transaction dated Wednesday, December 24th. The stock was sold at an average price of $196.89, for a total transaction of $2,953,350.00. Following the sale, the insider directly owned 234,077 shares of the company’s stock, valued at $46,087,420.53. This represents a 6.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 111,588 shares of company stock worth $26,108,046 in the last 90 days. 40.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Oracle

Several hedge funds and other institutional investors have recently made changes to their positions in ORCL. Bridgewater Advisors Inc. lifted its holdings in Oracle by 56.6% in the 4th quarter. Bridgewater Advisors Inc. now owns 11,905 shares of the enterprise software provider’s stock valued at $2,320,000 after purchasing an additional 4,303 shares in the last quarter. Bingham Private Wealth LLC acquired a new stake in shares of Oracle in the fourth quarter valued at about $210,000. Sunpointe LLC lifted its stake in shares of Oracle by 1.7% in the fourth quarter. Sunpointe LLC now owns 4,888 shares of the enterprise software provider’s stock worth $953,000 after buying an additional 81 shares in the last quarter. Split Rock Private Trading & Wealth Management LLC acquired a new position in Oracle during the fourth quarter worth about $284,000. Finally, Investment Advisory Group LLC grew its stake in Oracle by 2.9% during the 4th quarter. Investment Advisory Group LLC now owns 2,078 shares of the enterprise software provider’s stock valued at $405,000 after acquiring an additional 58 shares in the last quarter. Hedge funds and other institutional investors own 42.44% of the company’s stock.

About Oracle

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.