Oracle Corporation (NYSE:ORCL) has been downgraded by Morgan Stanley on January 15 which now rates the stock as Equal-Weight compared with Overweight rating suggested in the past. Analysts at Atlantic Equities, started covering the stock on January 09 with a Underweight rating. The stock lost favor of Barclays analysts who expressed their lack of confidence in it using a downgrade from Overweight to Equal Weight on January 09. Standpoint Research analysts came out with bullish views on December 26 when the call was made. They think the stock is now Buy compared to to their prior call for Hold.
Oracle Corporation (ORCL) hit an intraday high Monday at $51.475. The shares finished at $51.23, after trading as low as $50.95 earlier in the session. It rose 0.39% in recent trade and currently has a stock-market value of $180.94B. Trading activity significantly weakened as the volume at ready counter decreased to 9,444,480 shares versus 13,452,630 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 14,664,265 shares. The stock is now 20.83% above against its bear-market low of $42.4 on December 26, 2018. It has retreated -4.39% since it’s 52-week high of $53.48 reached in March. Now the market price is up 9.37% on the year and up 13.47% YTD.
ORCL’s 50 day simple moving average (SMA 50) price is $47.86 and its 200-day simple moving average (SMA 200) price is $47.88. The company’s stock currently has a total float of 2.45B shares. Its weekly volatility is hovering around 1.41% and felt 1.51% volatility in price over a month. On the upside, the share price will test short term resistance at around $51.49. On a downside, the stock is likely to find some support, which begins at $50.96. The failure to get near-term support could push it to $50.69.
Separately, it has been reported that multiple insider activity took place at Oracle Corporation (ORCL). Director Garcia-Molina Hector sold 3,750 shares for $26,094 in transaction occurred on 2019/01/15. After making this transaction, the Director owns a direct stake of 180,750 shares, worth $1,336,796, as per the last closing price. On 2018/12/27 Daley Dorian, EVP, Gen’l Counsel, Secretary at ORCL, dumped 25,000 shares at an average price of $45 per share. The selling total is valued at $3,991,790.
EVP, Gen’l Counsel, Secretary, Daley Dorian had divested 6,302 shares for $77,919 through a trade on 2018/12/24. Following this activity, the insider holds 272,498 shares worth $3,991,790 as of recent close. Wall Street’s most bullish Oracle Corporation (NYSE:ORCL) analysts are predicting the share price to blow past $61 per share during the next 12 months. The current median share price forecast by them is $53, suggesting that the stock could increase 3.46% in that time frame. The average price target of $52.32 calls for a nearly 2.13% increase in the stock price.
When looking at valuations, Oracle Corporation (ORCL) has a cheap P/E of 19.19x as compared to industry average of 32.02x. Moreover, it trades for 13.98 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 6.23x price/book and 4.55x price/sales. Compared to others, Oracle Corporation is in a different league with regards to profitability, having net margins of 10%. To put some perspective around this, the industry’s average net margin is 10.59%. ORCL’s ROE is 9.8%, which is also considerably better than the industry’s ROE of -132.75%. It’s also very liquid in the near term, with a current ratio of 2.8. The stock has a debt/capital of 1.9.
Shares of Oracle Corporation (ORCL) have gained 11.6% since the company’s last earnings report. Over the past 12 fiscal quarters, Oracle Corporation (NYSE:ORCL) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 2 quarters (16%), whereas at 3 occasion EPS met analyst expectations. ORCL last reported earnings on December 17, 2018 when it released Nov-18 results that exceeded expectations. The company raked in $0.8 per share, -65.67% change on the same period last year. That was better than consensus for $0.78. Revenue for the recent quarter stood at $9.57 billion, down -1% on last year and above the $9.52 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $9.18 billion to $9.69 billion, which should be compared with $10.12 billion generated last year. EPS is seen in a range of $0.75 to $0.85, against the $0.75 reported a year ago.