Oracle Corporation (NYSE:ORCL) achieved a new 52-week high on October 11, 2023, following the announcement of a dividend. The stock price rose to a peak of $320.99 before settling at $325.92, with a trading volume of 5,507,510 shares. This marks a significant increase from its previous close of $241.51.
The company declared a dividend of $0.50 per share, set to be paid on October 23, 2023, to stockholders recorded as of October 9, 2023. This translates to an annualized dividend of $2.00, resulting in a dividend yield of 0.6%. Currently, Oracle’s dividend payout ratio stands at 46.08%, indicating a balanced approach to returning value to shareholders while maintaining capital for growth.
Analyst Insights and Stock Performance
Analysts have reacted positively to Oracle’s recent performance. Westpark Capital increased its price target for Oracle shares from $195.00 to $246.00, assigning a “buy” rating on June 12, 2023. On the same day, Deutsche Bank Aktiengesellschaft reaffirmed its “buy” rating, raising its target from $200.00 to $240.00. Other firms, including Loop Capital and Raymond James Financial, have also set optimistic price targets and ratings for the stock, contributing to a consensus of 25 “buy” ratings, two “strong buy” ratings, and eight “hold” ratings according to MarketBeat.com. The average price target among analysts is currently $285.07.
Financial metrics further highlight Oracle’s solid position. The company has a market capitalization of approximately $946.72 billion, a P/E ratio of 77.69, and a P/E/G ratio of 3.56. Its quick ratio and current ratio both stand at 0.75, while its debt-to-equity ratio is notably high at 4.07. Oracle’s stock has also shown strong performance, with a 50-day simple moving average of $240.23 and a 200-day average of $187.60.
Recent Earnings and Insider Activity
Oracle recently reported quarterly earnings on June 11, 2023, revealing earnings per share of $1.70, exceeding estimates of $1.64 by $0.06. The company achieved a net margin of 21.68% and a return on equity of 87.34%, with revenues reaching $15.90 billion during the quarter, surpassing analyst expectations of $15.58 billion. This marks an 11.3% increase in revenue compared to the same period last year, demonstrating robust growth potential.
Insider trading has also garnered attention. Clayton M. Magouyrk sold 15,000 shares on June 17, 2023, at an average price of $214.10, totaling approximately $3.21 million. Following this sale, he retains 60,722 shares valued at around $13 million. Similarly, Maria Smith, Executive Vice President, sold 10,000 shares on July 3, 2023, for approximately $2.33 million, reducing her stake by nearly 20%. In total, insiders have sold 444,183 shares worth $86.52 million over the past 90 days, with insiders holding 42.20% of the company’s stock.
Recent activity among institutional investors also reflects growing interest in Oracle. Snider Financial Group increased its stake by 1.3% during the second quarter, while SNS Financial Group LLC and PKS Advisory Services LLC have made similar adjustments. Hedge funds and institutional investors now hold 42.44% of Oracle’s stock.
As Oracle continues to expand its offerings in the enterprise technology space, including cloud computing services, the company’s financial health and positive market sentiment position it favorably for future growth. The upcoming dividend payout further solidifies its commitment to shareholder returns.
