Technical And Fundamental Picture For Oracle Corporation (ORCL)

Taking everything into account, Oracle Corporation (NYSE:ORCL) scores 48% Sell on the technical side. The stock is also flashing a Hold from the Barchart TrendSpotter trading system. Traders hoping to speculate on the ORCL’s short-term trajectory should know that short terms indicators for the stock averaged 60% Sell with an average daily trading volume over the past 20 days at 19874785 shares. ORCL stock has overall a 0.5% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 19095018 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 33% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $45.63. Below this, the next support is placed in the zone of $44.58. Till the time, the ORCL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 39.92 on daily chart, which may remain a cause for comfort. If the price breaks below $44.58 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $47.75 mark may result into a pull-back move towards $48.82 level.

Oracle Corporation (ORCL) is projected to climb by 13.39 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $61-month high price target. This represents a whopping 30.68 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $53, which represents a return potential of 13.54 percent when compared to the closing price of the stock of $46.68 on Thursday, December 06. The lowest price target for the stock is $33 — slightly more than -29.31 percent from ORCL’s current share price.

Here’s a rundown of insider trading activity for sense of Oracle Corporation (NYSE:ORCL). The earliest insider trade took place on 11/15/2018. Garcia-Molina Hector parted with a total of 3.75 thousand shares of company at average share price of $50.01. The total for the sales was set at $187.54 thousand. After this transaction, the Director account balance stood at 26.09 thousand shares. The stock lost -6.66 percent since that insider sale. On 10/15/2018, Garcia-Molina Hector, Director, sold 3.75 thousand shares at a price per share of $47.26. This removed 177.23 thousand shares from the insider’s fortune and the stock saw a -1.23 percent retreat in value since the news became public. This transaction left 26.09 thousand shares in the Director account. On 09/24/2018, EVP, Gen’l Counsel, Secretary Daley Dorian performed a sale transaction worth $6.71 million. This sale at $50.93 each has eliminated 131.7 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -8.34 percent decrease since the transaction was reported. The insider now is left with 77.92 thousand shares remaining in the account. Garcia-Molina Hector, who performs the Director job, sold 3.75 thousand shares for $185.33 thousand. The disposal occurred on 09/17/2018 was priced at $49.42 per share. The share price plunged -5.54 percent since the reporting date. Garcia-Molina Hector now left with a stake of 26.09 thousand ORCL stock worth $1.22 million after the insider selling.

ORCL shares dropped -2.07 points or -4.25 percent on Thursday to $46.68 with a heavy trade volume of 39.781 million shares. After opening the session at $47.75, the shares went as high as $47.77 and as low as $45.65, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $174 billion and now has 3.72 billion shares outstanding. Oracle Corporation (ORCL) stock has lost -4.77 percent of market value in 21 trading days.

Analysts at Needham, assumed coverage of Oracle Corporation (NYSE:ORCL) with Hold recommendation, according to their opinion released on October 23. Evercore ISI analysts have downgraded their rating of ORCL stock from Outperform to In-line in a separate flash note to investors on October 03. Analysts at Wedbush downgraded the stock to a Neutral call from its previous Outperform stance, in a research note that dated back to June 20.

ORCL stock has a trailing 3-year beta of 1.11, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.62 a share in the trailing twelve months. The stock’s value has fallen -1.27 percent year to date (YTD) against a decline of -2.73 percent in 12 month’s time. The company’s shares still trade -12.72 percent away from its 1-year high of $53.48 and 9.65 percent up from 52-week low of $42.57. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Oracle Corporation (ORCL) are trading at a P/E ratio of 21.1 times earnings reported for the past 12 months. The industry ORCL operates in has an average P/E of 34.45. Its P/E ratio went as low as 14.98X and as high as 20.5 over the 5-year span. Further, it is sporting a 4.36 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.54. 79.7 percent is the gross profit margin for Oracle Corporation and operating margin sits at 34.2 percent. Along with this, the net profit margin is 9.7 percent.

ORCL will be declaring its Q2 financial results on December 19. Analysts are forecasting revenue to suffer decline of -1 percent to $9.53B in the next fiscal quarter, while earnings are seen soaring by nearly 11.43 percent to $0.78 per share. History has shown that shares in Oracle Corporation have gone down on 19 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.71 per share, better than the $0.69, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $9.2B, worse than the $9.26B analysts expected. Earnings are estimated to increase by 15 percent this year, 7.5 percent next year and continue to increase by 8.16 percent annually for the next 5 years.