Analysts at William Blair have revised their earnings per share (EPS) estimates for Oracle Corporation (NYSE:ORCL) for the first quarter of 2027. In a research note issued on September 10, 2023, analyst S. Naji projected that Oracle will earn $1.70 per share, up from a previous estimate of $1.52. This optimistic outlook aligns with the current consensus estimate for the company’s full-year earnings, which stands at $5.00 per share.
In addition to the Q1 forecast, William Blair provided estimates for Oracle’s earnings in subsequent quarters. The firm anticipates earnings of $1.94 per share for Q3 2027 and $2.17 per share for Q4 2027. Several other brokerages have also recently updated their ratings for Oracle, further reflecting positive sentiment around the enterprise software provider.
Wolfe Research has increased its target price for Oracle from $300.00 to $400.00, assigning the company an “outperform” rating. Similarly, Westpark Capital raised its target from $195.00 to $246.00 with a “buy” rating, while Piper Sandler adjusted its target from $270.00 to $330.00, maintaining an “overweight” rating. Evercore ISI also lifted its price target from $270.00 to $340.00, also rating it as “outperform.” In contrast, Roth Capital reiterated a “hold” rating on Oracle shares.
As of the latest updates, two analysts have rated Oracle with a Strong Buy, twenty-five have given it a Buy rating, and eight have issued a Hold rating. According to data from MarketBeat, the overall consensus rating for Oracle is “Moderate Buy” with an average target price of $296.84.
Oracle’s Stock Performance and Financials
On the morning of September 15, 2023, Oracle’s shares opened at $292.07. The company has experienced considerable volatility over the past year, reaching a 52-week low of $118.86 and a high of $345.72. With a market capitalization of $829.98 billion, Oracle has a price-to-earnings (PE) ratio of 67.61 and a price-to-earnings growth (PEG) ratio of 4.10. The firm’s debt-to-equity ratio stands at 3.33, indicating a higher reliance on debt relative to equity.
In its last quarterly earnings announcement on June 11, 2023, Oracle reported an EPS of $1.70, surpassing analysts’ expectations of $1.64. The company’s revenue for the quarter was $15.90 billion, exceeding the anticipated $15.58 billion, marking an 11.3% increase year-over-year. The net margin was reported at 21.08%, while the return on equity stood at 72.93%.
Recent Dividend Announcement and Insider Activity
Oracle has announced a quarterly dividend of $0.50 per share, scheduled for payment on October 23, 2023. Shareholders of record on October 9, 2023, will receive this dividend, which represents an annualized yield of 0.7% and a dividend payout ratio of 46.08%.
In related news, Rona Alison Fairhead, a director at Oracle, purchased 480 shares at an average price of $233.87 per share, totaling approximately $112,257.60. This transaction increased her ownership in the company to 22,110 shares, valued at around $5,170,865.70. Conversely, insider Clayton M. Magouyrk sold 15,000 shares at an average price of $214.10, resulting in a total value of approximately $3,211,500.00. Following this sale, Magouyrk retains 60,722 shares worth about $13,000,580.20.
In the last 90 days, insiders have sold a total of 44,183 shares valued at $10,353,198. It is noteworthy that insiders collectively own 42.20% of Oracle’s stock.
Institutional investors have also been active concerning Oracle’s shares. Recent transactions include new positions taken by Redmont Wealth Advisors LLC, Inlight Wealth Management LLC, and Winnow Wealth LLC, each acquiring shares valued at around $28,000. Overall, institutional investors hold 42.44% of the company’s stock.
Oracle Corporation continues to provide critical enterprise technology solutions globally, including its cloud-based services and applications, which remain integral to various industries. As the company navigates market dynamics, its financial performance and strategic positioning will be closely monitored by analysts and investors alike.
