Is Oracle Corporation (ORCL) A Risky Investment?

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Oracle Corporation (NYSE:ORCL) finished Thursday with an addition of $1.07 to close at $81.40, an upside of 1.33 percent. An average of 4,852,840 shares of common stock have been traded in the last five days. There was a fall of -$0.10 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 8,354,395 shares traded, while the 50-day average volume stands at 8,172,818.

ORCL stock has increased by 0.68% in the last month. The company shares reached their 1-month lowest point of $78.06 on 12/06/22. With the stock rallying to its 52-week high on 01/04/22, shares of the company touched a low of $60.78 and a high of $89.58 in 52 weeks. It has reached a new high 2 times so far this year and lost -6.66% or -$5.81 in price. In spite of this, the price is down -9.14% from the 52-week high.


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Insider Transactions

ORCL stock investors should be aware that Oracle Corporation (ORCL) stock had its last reported insider trading activity 16 days ago on Dec 14. In this transaction, the insider spent $32,800,181. Director, BOSKIN MICHAEL J, disposed of 90,000 shares at a price of $80.08 on Nov 15. The insider now owns more than $7,206,786 worth of shares. Prior to that, Chief Corporate Architect Screven Edward went on to Sale 200,000 shares at $74.90 each on Oct 27. An amount of $14,979,200 was transacted.

Valuation Metrics

Oracle Corporation (ORCL) has a trailing price-to-earnings (P/E) ratio of 25.42. The stock’s beta is 1.01. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.74, and the price-to-cash flow ratio at 44.03.

The company has a payout ratio of 38.90%. The company’s most recent quarterly dividend payment was $0.32 a share, without any change from last year. Its latest increase dividend $0.08 reported on Wednesday March 10 2021.

Financial Health

Its gross profit as reported stood at $33.56 billion compared to revenue of $42.44 billion.

Earnings Surprise

For the three-month period that ended November 29, Oracle Corporation had $537.0 million in cash and short-term investments compared to $81.17 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $1.74 billion in the quarter, while revenues of $1.55 billion were grew 171.63%. The analyst consensus anticipated Oracle Corporation’s latest quarter earnings to come in at $1.18 per share, but it turned out to be $1.21, a 2.50% surprise. For the quarter, EBITDA amounted to $4.57 billion. Shareholders own equity worth $2.7 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Oracle Corporation (ORCL) price momentum. RSI 9-day as of the close on 29 December was 55.85%, suggesting the stock is Neutral, with historical volatility in this time frame at 17.78%.

As of today, ORCL’s price is $80.81 -0.12% or -$0.10 from its 5-day moving average. ORCL is currently trading -1.96% lower than its 20-day SMA and +6.45% higher than its 100-day SMA. However, the stock’s current price level is +21.44% above the SMA50 and +0.99% above the SMA200.

The stochastic %K and %D were 30.77% and 33.18%, respectively, and the average true range (ATR) was 1.62. With the 14-day stochastic at 32.03% and the average true range at 1.73, the RSI (14) stands at 55.89%. The stock has reached 0.17 on the 9-day MACD Oscillator while the 14-day reading was at 0.18.

Analyst Ratings

KeyBanc Capital Markets upgraded Oracle Corporation (NYSE: ORCL) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a Sector weight. The consensus rating for Oracle Corporation (ORCL) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell ORCL, while 17 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 10 others rate it as a “buy”.

What is ORCL’s price target for the next 12 months?

Analysts predict a range of price targets between $55.00 and $120.00, with a median target of $90.00. Taking a look at these predictions, the average price target given by analysts for Oracle Corporation (ORCL) stock is $90.32.

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