Oracle (NYSE:ORCL) Stock Price Down 5.1% on Analyst Downgrade

Oracle Corporation (NYSE:ORCL) was down 5.1% during mid-day trading on Wednesday after BMO Capital Markets lowered their price target on the stock from $270.00 to $205.00. BMO Capital Markets currently has an outperform rating on the stock. Oracle traded as low as $144.43 and last traded at $146.75. Approximately 42,006,230 shares changed hands during mid-day trading, an increase of 60% from the average daily volume of 26,199,357 shares. The stock had previously closed at $154.67.

Other equities research analysts also recently issued research reports about the stock. KeyCorp cut their target price on shares of Oracle from $350.00 to $300.00 and set an “overweight” rating for the company in a research report on Thursday, December 11th. Scotiabank dropped their price target on Oracle from $260.00 to $220.00 and set a “sector outperform” rating on the stock in a research note on Tuesday. JPMorgan Chase & Co. reduced their price objective on Oracle from $270.00 to $230.00 and set a “neutral” rating for the company in a research report on Thursday, December 11th. Guggenheim reissued a “buy” rating and issued a $400.00 target price on shares of Oracle in a report on Thursday, December 11th. Finally, DA Davidson dropped their target price on Oracle from $200.00 to $180.00 and set a “neutral” rating on the stock in a research report on Thursday, December 11th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $296.03.

Insider Buying and Selling

In other Oracle news, insider Mark Hura sold 15,000 shares of the firm’s stock in a transaction that occurred on Wednesday, December 24th. The shares were sold at an average price of $196.89, for a total transaction of $2,953,350.00. Following the sale, the insider owned 234,077 shares in the company, valued at approximately $46,087,420.53. This trade represents a 6.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Douglas A. Kehring sold 35,000 shares of the company’s stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $194.89, for a total transaction of $6,821,150.00. Following the completion of the transaction, the executive vice president owned 33,638 shares of the company’s stock, valued at approximately $6,555,709.82. The trade was a 50.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 62,223 shares of company stock valued at $12,136,764 in the last 90 days. Corporate insiders own 40.90% of the company’s stock.

Trending Headlines about Oracle

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle Health won a multi-organization pilot in Canada for its Clinical AI Agent, validating commercial traction for Oracle’s healthcare AI products. Multiple Canadian Healthcare Organizations Select Oracle Health Clinical AI Agent
• Positive Sentiment: Oracle’s recent $25B bond offering reportedly attracted heavy demand, indicating strong investor appetite for its debt and suggesting financing channels are open. Oracle Stock (ORCL) Gains as $25B Bond Offering Attracts Heavy Demand
• Positive Sentiment: Some sell-side firms (e.g., Barclays) have reiterated bullish ratings and high price targets, implying analysts still see upside if Oracle executes its AI/data-center strategy. Barclays Reiterates Overweight on Oracle
• Neutral Sentiment: Oracle announced an equity distribution agreement and senior notes issuance to fund its plans — this provides capital but increases near-term financing activity and complexity. Oracle Bolsters Financing with Major Senior Notes Issuance
• Neutral Sentiment: Oracle continues product and go-to-market pushes (AI banking platform, enterprise AI agents) that could drive long-term growth but require heavy near-term capex. Oracle Reimagines Banking for the AI Era
• Neutral Sentiment: Strategic commentary ties Oracle’s massive data-center and power plans to a structural shift (e.g., MarketBeat piece on companies funding power and SMRs); long-term strategic rationale exists but is execution- and timeline-dependent. The Atomic Pivot: AI’s $50 Billion Power Move
• Negative Sentiment: Markets punished Oracle after management outlined plans to raise roughly $45–50B for AI infrastructure (debt and equity), stoking dilution and leverage fears and sparking the recent sell-off. Oracle (ORCL) Is Down 11.6% After Unveiling a US$45–50 Billion AI Infrastructure Capital Plan
• Negative Sentiment: Multiple law firms have filed or are soliciting clients for securities class actions tied to Oracle’s disclosures (senior notes/offering documents and the June–Dec 2025 class period), adding legal risk and headline pressure. Kessler Topaz Files Securities Fraud Class Action Against Oracle
• Negative Sentiment: Reports say banks are exploring selling billions in loans tied to Oracle’s data centers and the company may cut up to 30,000 jobs — both raise execution and integration risks and amplify downside sentiment. Oracle Stock (ORCL) Slips as Banks Explore Selling Its Data Center Loans Oracle May Slash Up to 30,000 Jobs
• Negative Sentiment: Analysts have trimmed price targets (BMO, Scotiabank among them) and commentary highlights investor anxiety about the size/timing of the capital raise and AI execution — contributing to the stock’s decline. Oracle Price Target Lowered at BMO

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Norges Bank bought a new position in shares of Oracle in the second quarter worth about $4,275,378,000. Jennison Associates LLC lifted its holdings in Oracle by 2,062.4% in the 3rd quarter. Jennison Associates LLC now owns 9,227,252 shares of the enterprise software provider’s stock worth $2,595,072,000 after purchasing an additional 8,800,546 shares in the last quarter. Vanguard Group Inc. lifted its holdings in Oracle by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 174,802,084 shares of the enterprise software provider’s stock worth $34,070,674,000 after purchasing an additional 5,841,584 shares in the last quarter. American Century Companies Inc. boosted its stake in Oracle by 333.7% in the 3rd quarter. American Century Companies Inc. now owns 5,238,006 shares of the enterprise software provider’s stock worth $1,473,137,000 after purchasing an additional 4,030,382 shares during the period. Finally, Invesco Ltd. grew its holdings in Oracle by 42.1% during the 2nd quarter. Invesco Ltd. now owns 8,839,166 shares of the enterprise software provider’s stock valued at $1,932,507,000 after buying an additional 2,619,722 shares in the last quarter. Institutional investors own 42.44% of the company’s stock.

Oracle Stock Performance

The firm’s 50-day moving average price is $191.31 and its 200-day moving average price is $235.52. The company has a debt-to-equity ratio of 3.28, a current ratio of 0.91 and a quick ratio of 0.91. The stock has a market cap of $421.63 billion, a P/E ratio of 27.58, a PEG ratio of 1.35 and a beta of 1.64.

Oracle (NYSE:ORCL) last issued its earnings results on Wednesday, December 10th. The enterprise software provider reported $2.26 earnings per share for the quarter, topping analysts’ consensus estimates of $1.64 by $0.62. The firm had revenue of $16.06 billion during the quarter, compared to analyst estimates of $16.19 billion. Oracle had a net margin of 25.28% and a return on equity of 70.60%. Oracle’s revenue for the quarter was up 14.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.47 earnings per share. Sell-side analysts expect that Oracle Corporation will post 5 earnings per share for the current fiscal year.

Oracle Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, January 9th were given a dividend of $0.50 per share. The ex-dividend date was Friday, January 9th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. Oracle’s dividend payout ratio (DPR) is presently 37.59%.

Oracle Company Profile

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.