Oracle Corporation (NYSE:ORCL) reached a new 52-week high on October 18, 2023, following the announcement of a dividend payment. The stock surged to a peak of $320.99 during trading before closing at $325.92, with a substantial volume of 5,507,510 shares traded. This represents a significant increase from its previous closing price of $241.51.
The company declared a dividend of $0.50 per share, set to be paid on October 23, 2023. Stockholders on record as of October 9, 2023, will be eligible for this dividend, which amounts to an annualized dividend of $2.00, yielding approximately 0.6%. Currently, Oracle’s dividend payout ratio stands at 46.08%.
Analyst Insights and Stock Performance
Wall Street analysts have positively reassessed Oracle shares in light of the recent developments. Notably, Westpark Capital increased its price target from $195.00 to $246.00, issuing a “buy” rating on June 12, 2023. Similarly, Deutsche Bank Aktiengesellschaft also reiterated a “buy” rating, raising its target price for Oracle from $200.00 to $240.00 on the same date.
In total, two analysts have awarded Oracle a “Strong Buy” rating, while twenty-five have rated it as a “Buy,” and eight have assigned a “Hold” rating. According to MarketBeat.com, Oracle currently holds an average rating of “Moderate Buy” and a price target of $285.07.
Oracle’s strong performance is backed by impressive financial metrics. The company reported a quarterly revenue of $15.90 billion, surpassing analysts’ expectations of $15.58 billion. Its earnings per share for the quarter reached $1.70, exceeding consensus estimates of $1.64 by $0.06. Year-over-year, this marks an 11.3% increase in revenue.
Insider Transactions and Institutional Holdings
In related news, insider trading activity has been notable. Clayton M. Magouyrk sold 15,000 shares on June 17, 2023, at an average price of $214.10, totaling approximately $3.21 million. This sale decreased his holdings by nearly 19.81%, leaving him with 60,722 shares valued at roughly $13 million. Additionally, Maria Smith, an executive vice president, sold 10,000 shares on July 3, 2023, for about $2.33 million.
Over the past ninety days, insiders have sold a total of 444,183 shares of Oracle stock, valued at approximately $86.5 million. Currently, corporate insiders hold 42.20% of the company’s stock.
Institutional investors have also been adjusting their positions in Oracle. Snider Financial Group increased its holding by 1.3% during the second quarter, now owning 3,204 shares worth $701,000. Other firms, including SNS Financial Group LLC and PKS Advisory Services LLC, have similarly raised their stakes. Collectively, hedge funds and other institutional investors own 42.44% of Oracle’s stock.
Oracle Corporation continues to solidify its position in the enterprise software market, offering a diverse range of products and services that cater to global information technology needs. With its cloud software offerings, including Oracle Fusion ERP and Oracle Cerner healthcare, the company remains a significant player in the tech industry.
As Oracle moves forward, analysts will closely monitor its financial health and market position, particularly in light of its recent stock performance and dividend announcement.
