Bank of America Lowers Oracle Price Target to $300 Amid Market Changes

Bank of America has revised its price target for Oracle Corporation (NYSE: ORCL) from $368.00 to $300.00, based on insights shared in a research note to investors on Thursday. Despite the adjustment, Bank of America maintains a buy rating on the cloud software and enterprise solutions provider’s stock, indicating continued confidence in its long-term potential.

Other analysts have also been active regarding Oracle’s stock. Notably, on September 10, BNP Paribas set a price target of $377.00, while JMP Securities reaffirmed a “market outperform” rating with a target of $342.00 on October 17. In a move that reflects a cautious optimism, Citigroup lowered its price objective from $415.00 to $375.00 on December 4, maintaining a buy rating. Additionally, UBS Group raised its target for Oracle from $360.00 to $380.00 on the same date as JMP’s report.

According to MarketBeat.com, the consensus rating for Oracle stands at “Moderate Buy,” with an average price target of $301.57. Analysts have provided a mixed view, as three have rated the stock with a Strong Buy, twenty-six have issued Buy ratings, twelve have given a Hold rating, and two have issued Sell ratings.

Oracle’s Financial Performance

Oracle recently released its quarterly earnings on December 10, reporting earnings per share (EPS) of $2.26, significantly exceeding the consensus estimate of $1.64 by $0.62. The company achieved a net margin of 25.28% and a remarkable return on equity of 70.60%. Revenue for the quarter reached $16.06 billion, slightly below the expected $16.19 billion, but reflecting a 14.2% increase from the same period last year, when the firm posted an EPS of $1.47.

Looking ahead, analysts expect Oracle to post an EPS of $5.00 for the current fiscal year. Additionally, the company announced a quarterly dividend of $0.50 per share, payable on January 23, 2024, to investors on record as of January 9, 2024. This dividend presents an annualized yield of 1.1%, with a payout ratio of 37.59%.

Insider Activity and Institutional Holdings

In recent insider activity, Director Jeffrey Berg sold 49,365 shares on October 28 at an average price of $283.02, totaling approximately $13.97 million. Post-sale, Berg holds 151,999 shares, valued at around $43.02 million. Similarly, CEO Clayton M. Magouyrk sold 40,000 shares on October 21 for approximately $11.07 million, reducing his stake by 20.62%.

In the last quarter, insiders sold a total of 171,513 shares valued at over $50.39 million. Currently, insiders hold 40.90% of Oracle’s stock, indicating a substantial vested interest in the company’s performance.

Several institutional investors have also adjusted their positions in Oracle recently. Brighton Jones LLC increased its holdings by 189.3%, now owning 153,580 shares valued at approximately $25.59 million. Other firms, including Revolve Wealth Partners LLC and NFP Retirement Inc., have also raised their stakes, reflecting confidence in Oracle’s future.

As Oracle continues to adapt within the competitive tech landscape, these adjustments from analysts and corporate insiders provide valuable insights into the company’s ongoing strategies and market positioning.