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Michael J. Boskin Sells 90,000 Shares of Oracle Co. (ORCL) Stock
By: MarketBeat | June 24, 2023
• Oracle Co. (NYSE:ORCL) Director Michael J. Boskin sold 90,000 shares of the business's stock in a transaction that occurred on Friday, June 23rd. The stock was sold at an average price of $118.83, for a total value of $10,694,700.00. Following the completion of the sale, the director now owns 87,473 shares of the company's stock, valued at approximately $10,394,416.59. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink...
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$ORCL Insiders at Oracle cashed in over $87,000,000 with the stock hitting new all-time highs.
By: TrendSpider | June 22, 2023
• $ORCL Insiders at Oracle cashed in over $87,000,000 with the stock hitting new all-time highs.
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Neville Rodie & Shaw Inc. Decreases Stake in Oracle Co. (ORCL)
By: MarketBeat | June 16, 2023
• Neville Rodie & Shaw Inc. decreased its holdings in shares of Oracle Co. (NYSE:ORCL) by 2.5% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 135,090 shares of the enterprise software provider's stock after selling 3,501 shares during the quarter. Oracle comprises about 1.1% of Neville Rodie & Shaw Inc.'s portfolio, making the stock its 25th biggest holding. Neville Rodie & Shaw Inc.'s holdings in Oracle were worth $12,553,000 at the end of the most recent quarter...
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$ORCL Opening OTM sweepers active in the 06/30 $128 CALLS
By: FLOWrensics | June 14, 2023
• $ORCL Opening OTM sweepers active in the 06/30 $128 CALLS.
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$ORCL & $ADBE $1 Million+ Calls
By: Cheddar Flow | June 14, 2023
• $ORCL & $ADBE $1M+ Calls
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Oracle teams up with Cohere to deliver powerful generative AI services for business
By: Investing.com | June 13, 2023
Oracle (NYSE:ORCL) announced plans to develop powerful, generative AI services for organizations, in collaboration with Cohere, a leading AI platform for enterprises. This collaboration aims to automate business processes, improve decision-making, and enhance customer experiences.
Leveraging Oracle Cloud Infrastructure (OCI) and Supercluster capabilities, the services will prioritize security, performance, and value.
"Only Oracle can offer a complete, end-to-end platform for generative AI, with advanced security, best-in-class data management, and a comprehensive portfolio of cloud applications able to address any business problem," said Clay Magouyrk, executive vice president, Oracle Cloud Infrastructure.
By integrating Cohere's models into Oracle's business applications, including Oracle Fusion Cloud Applications, Oracle NetSuite, and Oracle industry-specific applications, customers can quickly deploy generative AI to address their business challenges.
Oracle reported its Q4 earnings yesterday, with EPS and revenues coming in above the consensus estimates. Following the report, the company earned upgrades from several Wall Street firms, such as Goldman Sachs, Wolfe Research and CFRA.
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Oracle (ORCL) earnings impress Wall Street analysts
By: Investing.com | June 13, 2023
Oracle (NYSE:ORCL) reported earnings for its latest quarter after the close Monday, topping profit and revenue expectations.
The software vendor posted Q4 earnings of $1.67 per share, $0.09 better than the analyst estimate of $1.58, while revenue for the quarter came in at $13.8 billion versus the consensus estimate of $13.74 billion.
Oracle shares are up more than 5% premarket, trading close to the $123 mark.
Here's how Wall Street analysts reacted:
Goldman Sachs analysts said his firm is upgrading ORCL to Neutral with a $120 price target.
"We are upgrading Oracle to Neutral (from Sell) after a solid F4Q print and 1Q guide that alleviated concerns key to our Sell thesis, which centered primarily on mounting CapEx requirements to sustain growth in Gen2 OCI (while also diluting gross margin) and unabating market share losses in the Oracle's core database business," they wrote.
"Coming off the 4Q print, we were encouraged by the pronounced step-up in IaaS revenue growth to +77% (CC) vs. high-50's from 1Q-3Q which we took as a clear signal that Oracle's advertised price/performance advantage vs. the Hyperscalers is resonating w/ the market (both net new and existing customers), which should position the company for durable share gains despite its late entry into IaaS."
Wolfe Research analysts maintained an Outperform rating but lifted the price target on ORCL to $140 from $130.
"ORCL reported a strong F4Q23 with OCI / IaaS Revenue, FCF, and EPS ahead of expectations. FY24 guidance on Cloud and IaaS were both ahead of our and investor expectations on the back of AI driving OCI tailwinds," they said in a note.
Deutsche Bank analysts kept a Buy rating on the stock but raised the price target to $135 from $120.
"Oracle delivered strong F4Q results driven by robust demand across the portfolio and in particular, OCI accelerating to +77% y/y cc (from +57% last Q)," they stated. "Very importantly, the company expects to sustain its organic ~30% (ex Cerner) cloud growth rate in FY24, with upside dependent on the ability to roll out capacity."
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Earnings Preview: Will Oracle (ORCL) Live Up to Cautious Optimism?
By: 24/7 Wall St. | June 9, 2023
Oracle Corp. (NYSE: ORCL) is scheduled to report its fiscal fourth-quarter financial results on Monday. Analysts expect to see $1.58 in earnings per share (EPS) on $13.73 billion in revenue. That earnings estimate is the same as 60 days ago. The same period of last year had EPS of $1.54 and $11.84 billion in revenue. The company posted modest earnings surprises in the prior two quarters.
Over the past 52 weeks, the stock is up roughly 48%. However, it is up only closer to 31.5% year to date.
Despite a strong run, this top software stock is still offering a good entry point. Oracle develops, manufactures, markets, sells, hosts and supports database and middleware software, application software, cloud infrastructure, hardware systems and related services worldwide.
The company licenses its Oracle Database software to customers, which is designed to enable reliable and secure storage, retrieval and manipulation of various forms of data. Its Oracle Fusion Middleware software aims to build, deploy, secure, access and integrate business applications, as well as automate their business processes.
Last year, Oracle and Cerner closed an agreement for the former to acquire the latter through an all-cash tender offer for $95 per share, or approximately $28.3 billion in equity value. Cerner is a leading provider of digital information systems used within hospitals and health systems to enable medical professionals to deliver better health care to individual patients and communities.
A few analysts recently came out in favor of the stock:
• Barclays maintained a Buy rating and raised its price target to $113 from $85 on June 7.
• Jefferies maintained a Buy rating and raised its $105 price target to $125 on June 5.
• KeyCorp maintained an Overweight rating and raised its $98 price target to $105 on April 20.
• UBS maintained a Neutral rating but raised its price target to $90 from $87 on March 24.
The company currently offers a dividend of roughly 1.5%, or $1.60. It has a market cap of $290.2 billion.
Friday morning, shares of Oracle were trading up 2% at $109.67, in a 52-week range of $60.78 to $110.14. The consensus price target is $100.62, which implies downside of 6.4% from the most recent closing price of $107.48.
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Analysts boost Oracle stock targets into Q4 results
By: Investing.com | June 9, 2023
Oracle (NYSE:ORCL) is moving modestly higher in pre-market Friday after several Wall Street analysts raised their price target on the stock.
While Oracle has outperformed the Nasdaq index year-to-date, the company’s stock underperformed peers like Microsoft (NASDAQ:MSFT) and ServiceNow (NYSE:NOW).
Oracle is scheduled to report on Monday, June 12. Its stock hit a fresh record high on Thursday.
Citi analysts hiked the price target by $20 to $106 per share but remain Neutral-rated.
“Heading into Q4 we see a fairly balanced set-up with reseller survey mixed and ongoing macro headwinds, though we note intra-Q conference inputs were stronger on cloud with uptake of maintenance->cloud discount conversion program,” they said in a client note.
“We maintain our Neutral rating, awaiting more confidence in modernization of on-prem database workloads + OCI margin upside, which could be dependent on uptake of higher margin PaaS/DB services.”
Piper Sandler analysts raised the target to $130 per share.
“We have increasing conviction in our bull-thesis that a cloud shift can improve revenue growth rates and drive a return to double-digit EPS growth,” they wrote.
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Oracle (ORCL) 'continues to offer a strong risk-reward profile' - Mizuho
By: Investing.com | June 8, 2023
Mizuho analysts told investors in a note Thursday that they expect Oracle (NYSE:ORCL) to deliver a strong quarter.
The analysts, who have a Buy rating and a $116 price target on the stock, see Oracle delivering FQ4 revenue and EPS above consensus, driven by its strong cloud business.
"Although consensus for Cloud Services and Support revenue implies accelerating growth of 21% Y/Y, our checks indicate that both Fusion applications and OCI continue to gain traction," said the analysts.
"Despite the uncertain macro, demand for back-office applications remains robust with strong cloud migration."
They added that even though the stock has moved higher, they "believe ORCL, trading at 18x NTM P/E vs peers at 26x, continues to offer a strong risk-reward profile with its accelerating growth and AI exposure."
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Options Bulls Doubled Their Money with this Oracle (ORCL) Stock Call
By: Schaeffer's Investment Research | May 31, 2023
• Traders collected a 100% profit with our ORCL recommendation
• At the time of our recommendation, ORCL had plenty of technical support in place
Last week, Schaeffer's Option Advisor subscribers doubled their money with our suggested Oracle Corp (NYSE:ORCL) August 92.50 call. Below, we'll dive into the telling points for this bullish bet on the software stock.
At the time of our recommendation on Thursday, April 27, ORCL had been charging up the charts since its September 2022 bottom, up 16% in 2023. The shares pulled back to support at their 30-day moving average, which was also the site of both previous support and resistance late last year. We also noted the equity's market cap near the round $250 billion level, which the stock later moved past at $92.60.
ORCL was also sitting above its February and March highs at $91, with ample room for upgrades on the analyst front. At that point, 13 of the 24 covering brokerages carried a tepid "hold" or worse rating. Short interest had increased both long term and in the two most recent reporting periods, up nearly 14% during the latter. A lower IV reading was also on deck for the shares, making it the ideal time to buy ORCL premium.
On April 27 when the trade was entered, ORCL was trading at $95.04. Since then, the stock has rallied to levels not seen since its December 2021 record high of $106.34, trading at $105.89 at last glance. We exited the position with a closing price of $104.08, allowing subscribers to collect a 100% profit.
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NBT Bank N A NY Decreases Stock Position in Oracle Co. (ORCL)
By: MarketBeat | May 27, 2023
• NBT Bank N A NY cut its stake in Oracle Co. (NYSE:ORCL) by 3.4% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 41,802 shares of the enterprise software provider's stock after selling 1,459 shares during the period. NBT Bank N A NY's holdings in Oracle were worth $3,417,000 at the end of the most recent quarter...
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Oracle Corp. (ORCL) Earnings coming looks like it wants to run into it
By: Options Mike | May 7, 2023
• $ORCL breaking out, nice volume on this move
Earnings coming looks like it wants to run into it.
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ORCL Repeat sweepers in 05/19 $97 CALLS Attempting to break out of consolidation
By: FLOWrensics | May 5, 2023
• $ORCL Repeat sweepers in 05/19 $97 CALLS
Attempting to break out of consolidation.
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$ORCL Oracle CEO Safra Catz cashed out over $470 million in shares this week
By: TrendSpider | April 14, 2023
• $ORCL Oracle CEO Safra Catz cashed out over $470 million in shares this week.
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Oracle Corp. (ORCL) Shares Are Under Heavy Demand
By: Lucas Downey | April 10, 2023
• Oracle Corp. (ORCL) has surged in 2023, jumping 17%. One chart tells the story: heavy demand for the shares.
Oracle Shares Attract Big Money
So, what’s Big Money? Said simply, that’s when a stock pushes higher alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next up-trending stock. And ORCL has many fundamental qualities that are attractive.
But how the shares have been trading points to strong investor appetite. As I’ll show you, the Big Money has been consistent in the shares.
Each green bar signals big trading volumes as the stock ramped in price:
Source: www.mapsignals.com
Since October the shares attracted 9 unusual buy signals. Demand for the stock has been high. Those repeated green bars could mean more upside is ahead.
Now, let’s check out the fundamental action grabbing my attention:
Oracle Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is supportive too. As you can see, Oracle grew sales on a 1-year basis. The firm is expected to grow EPS at a healthy clip too. Take a look:
• 1-year sales growth rate (+4.8%)
• 1-year estimated EPS growth rate (+11.3%)
Source: FactSet
Marrying strong fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, ORCL has been a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure and healthy fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
Follow the Big Money.
Oracle Price Prediction
The Oracle rally could have further to go. Healthy buying in the shares is signaling to take notice. Shares could be positioned for further upside.
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Dash Acquisitions Inc. Acquires Shares of 2,529 Oracle Co. (ORCL)
By: MarketBeat | March 22, 2023
• Dash Acquisitions Inc. acquired a new stake in shares of Oracle Co. (NYSE:ORCL) in the fourth quarter, according to its most recent disclosure with the SEC. The firm acquired 2,529 shares of the enterprise software provider's stock, valued at approximately $207,000...
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Oracle Co. (ORCL) Given Average Recommendation of "Moderate Buy" by Analysts
By: MarketBeat | March 20, 2023
• Oracle Co. (NYSE:ORCL) has been assigned an average recommendation of "Moderate Buy" from the twenty-eight ratings firms that are currently covering the company, Marketbeat Ratings reports. Six research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $95.15...
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Oracle (ORCL) Stock Looks Fit For Traders Shorting Puts For Income
By: Barchart | March 21, 2023
Oracle Corp (ORCL), the cloud software and services company, reported stellar earnings on March 9. Nevertheless, ORCL stock has been essentially flat in the last month, trading at $87.46 on March 21 (midday). This presents short-put traders a good income opportunity with out-of-the-money put options.
Oracle reported that for its fiscal Q3 ending Feb. 28 revenues were up 18% year-over-year in USD and rose 21% in constant currency to $12.4 billion. Moreover, the company is now extremely profitable with non-GAAP operating margins at 42%. In addition, Oracle generated $7.3 billion in free cash flow (FCF) during the last 12 months (LTM). That represents a healthy 15% of its LTM revenues.
In addition, Oracle pays a consistent dividend which it just hiked by 25% to $1.60, giving ORCL stock a 1.78% dividend yield. Moreover, the company is still buying back stock, albeit at much-reduced levels compared to last year.
On top of this at just 17x this year’s earnings forecasts, ORCL stock is still moderately priced. All of these factors and earnings quality traits add up to a stock that is too cheap.
Shorting Out-Of-The-Money Puts
One way to conservatively play this is to short out-of-the-money OTM puts, as I described in my recent article prior to the earnings. That way, in case the stock takes a hit, the investor has a chance to buy in at a lower level, in addition to receiving immediate income.
For example, now with ORCL stock at $87.47, the $82.00 puts which I wrote about in the last article have dropped from 77 cents from March 6 to just 45 cents today. That represents a good return for investors in the past 15 days, or +41.6% (i.e., ($0.77-$0.45)/$077 x100).
Investors might want to roll this over (i.e., buy to close the short put position) and short a new further out-of-the-money put trade. For example, the April 21 expiration $80 strike price puts trade for 62 cents. This is a similar OTM strike price, i.e., over 8.4% below today's spot price, as well as a similar premium as before.
ORCL Puts - Expiring April 21 - Barchart - As of March 21, 2023
For example, it also means that an investor who secures $8,000 in cash and/or margin with a brokerage firm can then enter an order to “Sell to Open” 1 put contract at $80.00. The account will then immediately receive $62 per put contract shorted. That works out to an immediate 0.775% yield (i.e., $62/$8,000). If repeated each month for a year, this works out to an annualized 9.3% return.
Moreover, it allows the investor to buy in $80.00 if the stock falls to this level on or before April 21. This is a better situation than an investor who sells a covered call and then sees the stock fall to $80.00. At least with this short put trade, the investor will not have an unrealized capital loss. Moreover, the investor will have a lower breakeven, at $79.38 (i.e., $80-$0.62), which is 8.9% below today's price. However, keep in mind that if the short put trade is exercised, the investor could end up owning the stock at a higher price than the spot price.
The bottom line here is the ORCL stock is cheap and using short puts to buy in at a lower price is a good discipline, along with the ability to make income.
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Oracle shares down despite strong results and guidance; analysts say buy the dip
By: Investing.com | March 10, 2023
Oracle (NYSE:ORCL) shares are down more than 4% in pre-market Friday following the company’s reported Q3 results, with EPS beat but slightly lower-than-expected revenues. EPS came in at $1.22, compared to the consensus estimate of $1.21. Revenue grew 18% year-over-year (up 21% in constant currency) to $12.4 billion, compared to the consensus estimate of $12.43B.
Cloud services and license support revenues grew 17% to $8.9B, while Cloud license and on-premise license revenues came in at $1.3B (flat year-over-year). Cerner contributed $1.5B to total revenues in Q3.
“Oracle's cloud businesses now exceed $16 billion in annualized revenue. We remain the overwhelming market leader in Cloud ERP with approximately 10,000 Fusion ERP customers and over 34,000 NetSuite ERP customers. Our technically advanced and highly differentiated Gen2 infrastructure business continues to be in a hypergrowth phase—up 65% in Q3 in constant currency," said Oracle CEO, Safra Catz.
The company also hiked its dividend by 25% to $0.40 per share, which will be paid to stockholders of record as of the close of business on April 11, 2023, with a payment date of April 24, 2023.
Oracle expects FY revenue between $13.61B and $13.85B, beating the consensus of $13.66B. The adjusted EPS is seen between $1.56-1.60, again above the $1.45 consensus.
Mizuho analysts took note of a strong cloud momentum and impressive guidance.
"We believe investors may be underestimating Oracle’s potential over the medium-term to generate solid top-line and cash flow growth, and exceed its FY26 targets," the analysts said in a note.
Guggenheim analysts said Oracle's report was "impressive" given the current macro environment.
"We’d be aggressive buyers, as we believe Oracle is a different kind of unicorn in that it’s not immune to the economy (no one is), but it does have something that should at least partially offset it – that is OCI (Oracle Cloud Infrastructure)," they noted.
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Oracle shares down 4% following a slight Q3 revenue miss, dividend raised
By: Investing.com | March 9, 2023
Oracle (NYSE:ORCL) shares fell more than 4% after-hours following the company’s reported Q3 results, with EPS beat but slightly lower-than-expected revenues. EPS came in at $1.22, compared to the consensus estimate of $1.21. Revenue grew 18% year-over-year (up 21% in constant currency) to $12.4 billion, compared to the consensus estimate of $12.43B.
Cloud services and license support revenues grew 17% to $8.9B, while Cloud license and on-premise license revenues came in at $1.3B (flat year-over-year). Cerner contributed $1.5B to total revenues in Q3.
“Oracle's cloud businesses now exceed $16 billion in annualized revenue. We remain the overwhelming market leader in Cloud ERP with approximately 10,000 Fusion ERP customers and over 34,000 NetSuite ERP customers. Our technically advanced and highly differentiated Gen2 infrastructure business continues to be in a hypergrowth phase—up 65% in Q3 in constant currency," said Oracle CEO, Safra Catz.
The company also hiked its dividend by 25% to $0.40 per share, which will be paid to stockholders of record as of the close of business on April 11, 2023, with a payment date of April 24, 2023.
Oracle shares down 4% following a slight Q3 revenue miss, dividend raised
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Earnings Preview: Oracle Corp. (NYSE: ORCL)
By: 24/7 Wall St. | March 8, 2023
• Here is a look at what to expect when the following three companies post quarterly earnings after Thursday’s closing bell.
Oracle
Software and cloud-computing giant Oracle Corp. (NYSE: ORCL) has added about 19% to its share price over the past 12 months with virtually all the gain coming in the past six months. Shares posted their 52-week high a month ago, gaining about a third since posting a 52-week low in late September. The company may soon begin to feel some pressure from Microsoft’s introduction of its AI assistant, Dynamics 365 Copilot, which is set to bring OpenAI’s technology to the sales, marketing and customer service segments of enterprise-size businesses.
Of 32 analysts covering the stock, 13 have a Buy or Strong Buy rating and 16 rate it at Hold. At a share price of around $88.40, the upside potential based on a median price target of $93.50 is about 5.8%. At the high price target of $120.00, the upside potential is 35.7%.
Fiscal third-quarter revenue is forecast at $12.52 billion, up 1.1% sequentially and 18.2% higher year over year. Adjusted EPS are pegged at $1.20, down a penny sequentially and up 6.2% year over year. For the full 2023 fiscal year ending in May, current estimates call for EPS of $4.90, up 0.04%, on sales of $49.86 billion, up 17.5%.
Oracle stock trades at 18.0 times expected 2023 EPS, 15.8 times estimated 2024 earnings of $5.58 and 13.8 times estimated 2025 earnings of $6.41 per share. The stock’s 52-week range is $60.78 to $91.22. The company pays an annual dividend of $1.28 (yield of 1.45%). Total shareholder return for the past year is 20.96%.
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Oracle's Upcoming Earnings Are A Boon For Short Put Income Investors
By: Barchart | March 7, 2023
Oracle (ORCL) is coming out with its earnings on Thursday, March 9, for its fiscal Q3 ending Feb. 28. ORCL stock has been flat in the past month ending at $89.74 on March 6, but up 7.19% YTD. This has presented an opportunity for short-put income play investors, as I pointed out in my last article on Oracle on Feb. 14.
For example, Oracle's put option prices have been skewed higher than comparable out-of-the-money calls, as I wrote in the article. This indicates investors' ongoing trepidation about earnings, especially given the turmoil in the tech sector.
Moreover, this is still the case today, which continues to make short-put plays attractive to income investors.
Short Put Option Plays For Income
Last month we pointed out that the $80 strike price puts for March 17 were trading for 72 cents. The comparable 10% out-of-the-money strike price calls at $97.50 were at 52 cents. So the put option short trade was likely to yield more for the investor.
And so far that is the case. Today the $80 strike price puts are at $0.21 per put, whereas the $97.50 calls are at 31 cents.
So, that means that the put option fell from 72 cents to 21 cents, a 70% return for the short put investor. By contrast, the call option trade fell from 52 cents to 31 cents, just a 40% return. That shows that the higher premium put option, based on the distance from the spot price, was also the best return for short option investors.
Moreover, the existing situation for shorting out-of-the-money (OTM) put options going forward is also very favorable. For example, the April 6, 2023, expiration put option chain shows that the $82.00 strike price trades for 77 cents per put option. This strike price is 8.62% below today's stock price of $89.74, ahead of its earnings release.
ORCL Puts - Expiring April 6 - Barchart - As of March 6, 2023
That means that the investor who secures $8,200 with the brokerage firm in cash and/or margin, can enter an order to “Sell to Open” 1 put contract at $82.00. The account will immediately receive $77, so this represents a present yield of 0.93% (i.e., $77/$8,200 invested). That also projects out to an annualized return of 11.3%, assuming it can be repeated each month.
Moreover, the similar OTM call option is the $97.00 call strike, which is 8.0% higher than today's price. The premium that can be received is just 65 cents, lower than the 77 cents for the similar OTM put price.
Where This Leaves Investors In ORCL Stock Short Options
This indicates that investors are betting that ORCL stock will likely fall more than it will rise once the earnings come out on March 9. However, in the case of the put option short, the investor will not have to relinquish any shares should the stock rise more than 8.0%.
In fact, the investor has the opposite risk. If ORCL stock falls below $82.00 the investor will have to buy the shares at $82.00, no matter how low it gets. That could potentially lead to an unrealized loss situation. But, at least that is not a realized return as might be the case with the covered call.
Moreover, the investor can then take the long ORCL shares and short-covered calls. That can be repeated until the investor has made up for the unrealized loss. This is known as the “wheel” strategy.
As a result, all eyes will be on the March 9 earnings. If investors don't like what they see, which is not likely based on my prior analysis last month, the stock could falter. But right now this provides a good opportunity for short put income investors.
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Oracle to 'buck the macro trend' claims Morgan Stanley
By: Investing.com | March 6, 2023
Oracle (NYSE:ORCL) may be able to buck the macro trend, according to Morgan Stanley, while Deutsche Bank said the company is becoming more strategic, on Monday.
The analysts released notes on the software company ahead of its fiscal third-quarter results on Thursday, March 9, after the close.
Morgan Stanley analysts told investors in a note that the firm's CIO survey, channel checks, and analysis of the drivers of license outperformance "suggest Oracle may be able to yet again buck the macro trend."
However, they believe the investor focus shifts more towards margins, gross margin recovery, and further opex savings "as they look to underwrite the current multiple."
"Oracle managed to largely buck the macro trend over the past several quarters, delivering durable Cloud revenue growth and upside on license and hardware revenue in Q2," the analysts, who have an Equal-weight rating and a $90 price target on the stock, wrote. "We see the key investor debates heading into Q3 earnings results to focus on three key topics: 1) cloud momentum; 2) license revenue upside; and 3) cost reductions from Cerner.
In addition, they said Morgan Stanley's checks indicate Oracle's cloud momentum should sustain in the third quarter, while their CIO survey and view of the potential drivers of the second quarter license outperformance "suggest the potential for upside ahead."
At Deutsche Bank, analysts told investors in a note that their strategic checks "reflect Oracle becoming more strategic despite NT deal slippage."
"Our F3Q checks suggest underlying customer interest remains very healthy if not improving, particularly for Cloud (both SaaS and OCI); however, the quantity of deals (specifically net new initiatives) slipping out of F3Q was elevated as customers navigate macro cross currents," said Deutsche Bank analysts, who have a Buy rating and $120 price target on the stock.
"Positively, we hear from multiple sources that ELA/ULAs (Enterprise/Unlimited License Agreements) are very much back in fashion after slowly waning over several years; we see this as an important proxy for Oracle's strategic relevance to its customers. On balance, customers seem to be making longer, more durable commitments to Oracle," they added.
Overall, Deutsche Bank remains firm in its constructive view on Oracle and sees several positive factors "driving the potential for organic revenue acceleration and EPS upside in FY24 and beyond."
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Ethic Inc. Increases Stock Position in Oracle Co. (ORCL)
By: MarketBeat | March 1, 2023
• Ethic Inc. lifted its holdings in Oracle Co. (NYSE:ORCL) by 6.4% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 91,946 shares of the enterprise software provider's stock after purchasing an additional 5,570 shares during the period. Ethic Inc.'s holdings in Oracle were worth $5,615,000 at the end of the most recent quarter...
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Oracle (ORCL) Stock Has Spiked Ahead Of Earnings Attracting Short Put Investors
By: Barchart | February 14, 2023
Oracle (ORCL) stock has spiked from its lows last October given the company's solid earnings, free cash flow, and cloud wins for the quarter ending Nov. 30. Investors are increasing shorting ORCL stock puts as an income play ahead of next month's earnings.
Oracle will likely report its fiscal Q3 earnings for the quarter ending Feb 28 by March 13 or earlier. As a result, options premiums are rising, but they are especially skewed to the put side over calls. This indicates investors in the stock have a feeling that ORCL stock price could peak ahead of earnings.
Fundamentals Are Strong
Oracle is an extremely profitable company. In its latest quarter, operating margins on a non-GAAP basis were 41%. This is a very high margin number, albeit it was lower than 47% a year ago.
Nevertheless, analysts project $4.91 in earnings per share (EPS) this year ending May 2023, and $5.68 next year. That puts ORCL stock, at $88.72 on Feb. 14, on a cheap forward multiple of 18x this year's earnings and 15.9x next year.
Moreover, free cash flow (FCF) is still extremely strong. Last quarter the company produced about $8.8 billion in FCF, which represented 95% of its net income. In other words, it is still gushing cash. And recently the company signed up new cloud customers of which the market is taking notice as it could keep that FCF growing.
Nevertheless, on a historical basis, according to Morningstar, ORCL stock is slightly higher than its average historical P/E multiple and has a lower-than-average dividend yield. This implies the stock could be peaking or might move.
As a result, put option premiums have been rising, making them attractive to short-put investors.
Shorting Out-Of-The-Money ORCL Puts
We like to highlight short-put side investments for cash-secured put writers when the put premiums are skewed higher than the same expiration period call options.
For example, the March 17 puts at the $80 strike price, which is almost 10% below today's price trade for 72 cents per put option. By contrast, the $97.50 strike price calls for March, which is a strike price that is 9.9% over today's price, trade for March 17 trade for just 52 cents. So investors at 10% away from today's price will make more money shorting puts rather than calls.
Moreover, the short-put investor will make a significantly higher yield. For example, the yield an investor will make on the put side is 0.90% (i.e., $0.72/$80.00). That works out to an annualized rate, assuming the investor can repeat the trade each month, of 10.8%.
By contrast, the covered call investor who shorts the $97.50 strike price calls will make just 0.586% (i.e., $0.52/$88.72), or 7.0% on an annualized basis.
As a result, shareholders who already own ORCL stock may either want to short OTM calls or else short put strike prices. But those that don't presently have a position might clearly find it more profitable to put up cash with their brokerage firm and short OTM strike prices to generate higher income. Even if ORCL stock falls, they have a chance to buy in at a lower price if their strike price is exercised.
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Oracle Co. (ORCL) Shares Sold by Capitolis Advisors LLC
By: MarketBeat | February 10, 2023
• Capitolis Advisors LLC cut its holdings in shares of Oracle Co. (NYSE:ORCL) by 60.3% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 100,000 shares of the enterprise software provider's stock after selling 151,604 shares during the quarter. Capitolis Advisors LLC's holdings in Oracle were worth $6,107,000 at the end of the most recent reporting period...
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Cullen Capital Management LLC Raises Holdings in Oracle Co. (ORCL)
By: MarketBeat | February 9, 2023
• Cullen Capital Management LLC increased its position in Oracle Co. (NYSE:ORCL) by 2.4% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 60,260 shares of the enterprise software provider's stock after acquiring an additional 1,435 shares during the period. Cullen Capital Management LLC's holdings in Oracle were worth $3,680,000 at the end of the most recent reporting period...
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U.S. Capital Wealth Advisors LLC Purchases 4,131 Shares of Oracle Co. (ORCL)
By: MarketBeat | January 14, 2023
• U.S. Capital Wealth Advisors LLC lifted its position in shares of Oracle Co. (NYSE:ORCL) by 3.6% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 117,972 shares of the enterprise software provider's stock after purchasing an additional 4,131 shares during the quarter. U.S. Capital Wealth Advisors LLC's holdings in Oracle were worth $7,205,000 at the end of the most recent reporting period...
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Oracle (ORCL) stock gets second upgrade in 2023 as Piper Sandler moves to Overweight
By: Investing.com | January 9, 2023
Piper Sandler analysts upgraded Oracle (NYSE:ORCL) stock to Overweight from Neutral with a price target of $104 per share, up from the prior $85.
They see 2024 as a "watershed year" for Oracle, given that growth in operating profits and EPS could accelerate to more than 10%.
"Despite all the banter on cloud, the 1% CAGR in revenue and operating profits between F2012-F2022 made it easy to ignore ORCL. That may no longer be the case given Oracle Cloud could expand ~26% annually to reach $21.7B by F2025," the analysts wrote in a client note.
The cloud transformation, in conjunction with a lower share count, could fuel EPS growth, the analysts added. As a result, they hiked their EPS estimates.
"We see room for both earnings and multiple expansion as the acceleration to double-digit EPS growth materializes," they concluded.
This is the second upgrade for Oracle in just a couple of days after Jefferies raised their recommendation on the tech stock to Buy last week. The analysts argued that Oracle has "its mojo back."
"We like the reacceleration growth theme, focus on expense scrutiny and cheap multiple. Tactical pick for value investors," they wrote in an upgrade note last week.
Oracle shares are up over 1.5% today.
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Oracle (ORCL) Given a $115.00 Price Target by Credit Suisse Group Analysts
By: MarketBeat | December 21, 2022
• Oracle (NYSE:ORCL - Get Rating) has been assigned a $115.00 price objective by investment analysts at Credit Suisse Group in a research report issued on Wednesday, Borsen Zeitung reports. Credit Suisse Group's price target would indicate a potential upside of 42.08% from the stock's previous close...
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$ORCL Oracle Vice Chairman with a $32M sale following this week's earnings report...
By: TrendSpider | December 17, 2022
• $ORCL Oracle Vice Chairman with a $32M sale following this week's earnings report...
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Oracle Co. (ORCL) Vice Chairman Sells $32,800,000.00 in Stock
By: MarketBeat | December 16, 2022
• Oracle Co. (NYSE:ORCL) Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction dated Wednesday, December 14th. The shares were sold at an average price of $82.00, for a total value of $32,800,000.00. Following the sale, the insider now owns 1,792,688 shares of the company's stock, valued at $147,000,416. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink...
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Jefferies Financial Group Analysts Decrease Earnings Estimates for Oracle Co. (ORCL)
By: MarketBeat | December 16, 2022
• Oracle Co. (NYSE:ORCL) - Analysts at Jefferies Financial Group dropped their Q3 2023 earnings per share (EPS) estimates for shares of Oracle in a research note issued to investors on Tuesday, December 13th. Jefferies Financial Group analyst B. Thill now anticipates that the enterprise software provider will post earnings of $0.96 per share for the quarter, down from their prior forecast of $1.12. The consensus estimate for Oracle's current full-year earnings is $4.11 per share. Jefferies Financial Group also issued estimates for Oracle's Q4 2023 earnings at $1.17 EPS, FY2023 earnings at $3.88 EPS, Q1 2024 earnings at $0.99 EPS, Q2 2024 earnings at $1.07 EPS, Q3 2024 earnings at $1.17 EPS, Q4 2024 earnings at $1.38 EPS and FY2024 earnings at $4.61 EPS...
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Oracle (ORCL) Stock Reverses Gains After Earnings Beat
By: Schaeffer's Investment Research | December 13, 2022
• Oracle reported better-than-expected fiscal second-quarter results
• Options volume is running at four times the intraday average
Oracle Corp (NYSE:ORCL) is in the spotlight after its fiscal second-quarter results beat, with the stock earlier hitting its highest level since January before pulling back to modest losses. No fewer than four analysts raised their price targets after the event, with the highest from Jefferies to $90 from $85, while Cowen and Company slashed its to $96 from $98. At last glance, ORCL was down 1.1% at $80.40.
Options traders are targeting ORCL at four times the average intraday volume. So far, 65,000 calls and 49,000 puts have crossed the tape. The December 80 call is the most popular, followed by the 85 call in the same monthly series.
The amount of calls today represents a shift in sentiment. In the last 10 weeks, 1.38 puts have been picked up for every call at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 95% of readings from the past year, indicating long puts being picked up at a much faster-than-usual rate in the last 50 days.
Options look like a good way to go, too, per the security's Schaeffer's Volatility Scorecard (SVS), which sits at an 89 out of 100. This this means Oracle stock has exceeded option traders' volatility expectations during the past year.
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Currency impact at Oracle guidance:
By: The Transcript | December 13, 2022
• Currency impact at $ORCL guidance:
"Using currency exchange rates as they are right now, currency should have a 4% negative effect on total revenue and at least a $0.06 negative effect on EPS in Q3"
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Analysts raise Oracle numbers after 'better-than-feared' results
By: Investing.com | December 13, 2022
Oracle (NYSE:ORCL) shares are trading almost 3% higher today after the company reported better-than-expected earnings for its second fiscal quarter.
Oracle posted an adjusted EPS of $1.12 on revenue of $12.3 billion, beating the analyst consensus for earnings of $1.16 per share on revenue of $11.95B. Revenue rose 18% year-over-year as cloud services revenue increased by 14% to $8.6B.
"In Q2, Oracle's total revenue grew 25% in constant currency—exceeding the high end of our guidance by more than $200 million," said Oracle CEO, Safra Catz. "That strong overall revenue growth was powered by our infrastructure and applications cloud businesses that grew 59% and 45% respectively, in constant currency."
Oracle also declared a quarterly cash dividend of $0.32 per share.
Piper Sandler analysts raised the price target to $85 from $75 per share after "solid and better-than-feared" results.
"We are raising our PT to reflect a slightly higher growth trajectory through FY27 and the assumption that the FCF margin has troughed and could begin to recover into next year (discount rate unchanged). While our bias is turning more constructive, we maintain at Neutral until we see further evidence of a sustainable path to double-digit revenue growth and improving FCF margins," the analysts said in a client note.
Deutsche Bank analysts said the FQ2 results showed an "acceleration in a decelerating backdrop." As a result, they reiterated a Buy rating on ORCL stock after "particularly impressive results against a difficult backdrop, featuring organic acceleration and OCI strength."
"If there is any company where we feel comfortable relying on capex as a leading indicator, it would be Oracle, and it is expected to remain at these levels for the next few quarters. It is apparent to us that OCI increasingly has a seat at the table with some of the largest and most demanding purchasers of cloud infrastructure," the analysts wrote.
Other sell-side firms, including Bank of America and Stifel, also raised price targets on Oracle stock.
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Oracle (ORCL) shares rise after-hours after topping earnings, revenue expectations
By: Investing.com | December 12, 2022
Oracle (NYSE:ORCL) shares have risen in extended trading Monday after the company reported its fiscal second-quarter earnings, topping analyst consensus expectations.
Oracle shares closed the regular session up 1.77%. It is currently up 2.95% after hours.
The technology firm posted adjusted earnings per share of $1.21 on revenue of $12.3 billion, which rose 25% in constant currency. Analysts expected earnings of $1.16 per share on revenue of $11.95B.
Oracle's cloud revenue in Q2 came in at $3.8B, up 48% in constant currency, while cloud infrastructure revenue was $1B, up 59% in constant currency.
The strengthening of the U.S. dollar had a significant impact on Oracle's results in the quarter. The company said that without the FX-related impact, Oracle's reported Q2 non-GAAP earnings per share would have been 9 cents higher.
"In Q2, Oracle's total revenue grew 25% in constant currency—exceeding the high end of our guidance by more than $200 million," said Oracle CEO, Safra Catz. "That strong overall revenue growth was powered by our infrastructure and applications cloud businesses that grew 59% and 45% respectively, in constant currency."
Oracle declared a quarterly cash dividend of $0.32 per share.
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Oracle Co. (ORCL) Receives Consensus Recommendation of "Hold" from Analysts
By: My MarketBeat | December 10, 2022
• Shares of Oracle Co. (NYSE:ORCL) have received an average recommendation of "Hold" from the twenty-eight analysts that are currently covering the firm, MarketBeat Ratings reports. Twelve investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $89.04...
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Earnings Preview: Oracle Corp. (NYSE: ORCL)
By: 24/7 Wall St. | December 9, 2022
• Here is a preview of three companies set to report quarterly results after U.S. markets close Monday afternoon.
Oracle
Software and cloud-computing giant Oracle Corp. (NYSE: ORCL) has dropped about 9.8% from its share price over the past 12 months. Since reaching an all-time high in mid-December of last year, the share price has dropped by nearly 25%.
On Thursday, the Pentagon announced that Oracle, Microsoft and Amazon would share in a contract valued at around $9 billion to build the U.S. Defense Department’s Joint Warfighting Cloud Capability (JWCC), the successor to the $10 billion Joint Enterprise Defense Infrastructure (JEDI) modernization product that was awarded to Microsoft in 2019 and scrapped last year by the Biden administration after Oracle and Amazon protested the award. Stay tuned.
Of 31 analysts covering the stock, 10 have a Buy or Strong Buy rating and 19 have Hold ratings. At a share price of around $80.10, the upside potential based on a median price target of $82.50 is about 3%. At the high price target of $120.00, the upside potential is 49.8%.
Fiscal second-quarter revenue is forecast at $12.01 billion, up 5% sequentially and 15.9% higher year over year. Adjusted EPS are pegged at $1.17, up 14.1% sequentially and down 3.3% year over year. For the full 2023 fiscal year ending in May, current estimates call for EPS of $4.96, up 1.3%, on sales of $49.44 billion, up 16.5%. Oracle completed its $28 billion acquisition of Cerner in June, helping to account for its overall sales growth for the current fiscal year.
Oracle stock trades at 16.1 times expected 2023 EPS, 14.2 times estimated 2024 earnings of $5.65 and 12.1 times estimated 2025 earnings of $6.61 per share. The stock’s 52-week range is $60.78 to $106.34. The company pays an annual dividend of $1.28 (yield of 1.62%). Total shareholder return for the past year is negative 8.2%.
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JUST IN: Oracle $ORCL,... Were all just awarded contracts with the US Department of Defense with a ceiling value of $9 Billion
By: StockMKTNewz | December 7, 2022
• JUST IN: Google $GOOGL, Amazon Web Services $AMZN, Microsoft $MSFT and Oracle $ORCL were all just awarded contracts with the US Department of Defense with a ceiling value of $9 Billion
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Oracle (ORCL) Daily. Possible S/R flip in the works after a cup & handle breakout last week
By: CJ | November 30, 2022
• $ORCL #ORCL Daily
Possible S/R flip in the works after a cup & handle breakout last week.
Like the 79-80 area for a potential bounce spot.
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Oracle Co. (ORCL) Director Sells $7,207,200.00 in Stock
By: Market Beat | November 16, 2022
• Oracle Co. (NYSE:ORCL - Get Rating) Director Michael J. Boskin sold 90,000 shares of the business's stock in a transaction dated Tuesday, November 15th. The stock was sold at an average price of $80.08, for a total value of $7,207,200.00. Following the completion of the sale, the director now owns 82,607 shares in the company, valued at $6,615,168.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link...
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Oracle Sells $7 Billion of Debt to Help Fund Cerner Purchase
By: Bloomberg | November 7, 2022
Oracle Corp. is the latest company to seize the moment in a credit market recovery, bringing a $7 billion bond sale to help fund its acquisition of medical-records systems provider Cerner Corp.
The software-maker sold bonds in as many as four parts, according to a person with knowledge of the matter. The longest portion of the offering, a 30-year note, yields 2.55 percentage points above Treasuries after earlier discussions of about 3.1 percentage points, said the person, who asked not to be identified as the details are private.
Oracle announced, along with the bond sale, that it also increased its previous $4.4 billion term loan by $1.3 billion. The added proceeds will help pay down a bridge loan used to fund the acquisition of Cerner, according to a filing.
The Cerner acquisition was originally funded with about $15.7 billion of so-called bridge loan debt provided by a group of banks. Such debt is typically refinanced into longer-term bonds and loans. Oracle later borrowed about $4.4 billion through a term loan agreement, using that to reduce the bridge facility.
The proceeds of the bond sale will prepay borrowings under the bridge deal. With the bond sale and the added proceeds of the term loan, there’s about $3 billion left to fund in the bond market from the bridge loan.
Austin, Texas-based Oracle originally agreed to buy Cerner for $28 billion in December, in an all-cash deal that would broaden its customer base within the health-care industry and bolster its cloud-computing and database businesses.
“Today’s Oracle deal has been anticipated for months, and we expect healthy participation from the buyside even though it’s a company that has been remarkably inattentive to maintaining its credit rating profile,” said Baylor Lancaster-Samuel, vice president of fixed income at Amerant Investments Inc., in an emailed response to questions.
“As recently as 2020, Oracle was rated high A and with the Cerner deal, there was some threat that Oracle could flirt with a BBB- rating at the lowest rung of investment grade,” she said.
Fitch Ratings downgraded Oracle to BBB from BBB+ on Monday. It assigned a BBB score to the new unsecured notes, as did S&P Global Ratings.
Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc., HSBC Holdings Plc and JPMorgan Chase & Co. are managing Oracle’s bond sale, the person said.
Oracle is one of 15 companies that sold investment-grade debt on Monday, marking the busiest day in that market by number of deals since the days following Labor Day in September.
Firms have been taking advantage of the ease in credit market volatility in recent weeks to launch new deals. Last week, several banks used the window to offload some of their most risky buyout and acquisition debt.
On Friday, Canada’s Open Text Corp. kicked off a roughly $3.1 billion leveraged loan sale to help finance its purchase of British software business Micro Focus International Plc. Earlier that same week, banks launched a $2.4 billion debt sale to help fund Apollo Global Management Inc.’s buyout of auto-parts maker Tenneco Inc., which the group had previously resigned to funding itself.
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ORCL Oracle insider takes a $15M payday into this week's strength
By: TrendSpider | October 29, 2022
• $ORCL Oracle insider takes a $15M payday into this week's strength.
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Guggenheim Increases Oracle (ORCL) Price Target to $115.00
By: MarketBeat | October 27, 2022
• Oracle (NYSE:ORCL - Get Rating) had its price objective increased by equities researchers at Guggenheim to $115.00 in a report issued on Thursday, Stock Target Advisor reports. Guggenheim's price objective points to a potential upside of 52.93% from the company's previous close...
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Oracle Corp. (ORCL) Wouldn't chase, 200D close big spot for it
By: Options Mike | October 23, 2022
• $ORCL Issued very nice long term guidance on their investor day. Wouldn't chase, 200D close big spot for it.
Helping the Sector.
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