Oracle stock: buy or sell?
Updated on:
May 21st, 2019
4
Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure technologies for information technology (IT) environments worldwide.
Should I buy Oracle stock?
Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.None of our preferred buy setups matches with Oracle stock situation right now, therefore this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Oracle stock a buy?
Financial institutions and banks publish stock ratings everyday.
At Stocks2.com, we gathered 15 ratings published for ORCL stock in the last 30 days.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-3-29 | Exane BNP Paribas | n/a | Neutral |
| 2019-3-29 | BNP Paribas | Neutral | Neutral |
| 2019-3-19 | DZ Bank | n/a | Sell |
| 2019-3-18 | Credit Suisse Group | n/a | Buy |
| 2019-3-15 | Wedbush | n/a | Neutral |
| 2019-3-15 | Wedbush | Neutral | Neutral |
| 2019-3-15 | UBS Group | n/a | Neutral |
| 2019-3-15 | Royal Bank of Canada | n/a | Sector Perform |
| 2019-3-15 | Raymond James | Outperform | Outperform |
| 2019-3-15 | Mitsubishi UFJ Financial Group | n/a | Overweight |
| 2019-3-15 | BMO Capital Markets | Outperform | Market Perform |
| 2019-3-13 | JPMorgan Chase & Co. | n/a | Neutral |
| 2019-3-11 | Nomura | Buy | Reduce |
| 2019-3-11 | Nomura | Buy | Sell |
| 2019-3-11 | Credit Suisse Group | n/a | Buy |
Oracle stock analysis
Daily outlook
Oracle shares grew 0.95% to $54.17 today.
Oracle closed today at $54.17 and grew a slightly fine 0.95%. Since price and SMA200d lines crossed up on January, ORCL climbed $7.85 (16.95%). On February, SMA50d and SMA100d crossed up triggering a rise of 3.67%. On Apr/24, ORCL hit a new all time high, pushing higher than on April 23rd tops. Check different trading setups that use ATHs as triggers.
Weekly outlook
Oracle slightly fell a bad -0.61% this week. This was the 4th red week in a row, sliding in full a -2.27%.
ORCL shows a long term strength with several rising tops and rising bottoms. It left a new bottom at $53.08 early May. Previous top ($55.53) will play as a resistance in possible new gains. Not so far away is the last price record Oracle marked late April. Since price and SMA40w lines crossed up early January, ORCL climbed $7.85 (16.95%). Since mid October 2018 when SMA20w and SMA40w crossed up, ORCL price gained $7.38 per share (15.77%).
Oracle stock price history
Oracle stock went public on March 12th, 1986 with a price of $0.061. Since then, ORCL stock surged a 90,183.30%, with an average of 2,732.80% per year. If you had invested right after ORCL's IPO a $1,000 in Oracle stock in 1986, it would worth $901,833.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Oracle stock historical price chart
ORCL stock reached all-time highs on Apr/24 with a price of $55.53.
Oracle stock price target is $52.70
Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We detected 14 price predictions for ORCL stock published in the last 30 days:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-3-29 | Exane BNP Paribas | Initiates | n/a | $50.00 | - |
| 2019-3-29 | BNP Paribas | Initiates | n/a | $50.00 | - |
| 2019-3-18 | Credit Suisse Group | Set Price Target | n/a | $60.00 | - |
| 2019-3-15 | Wedbush | Reiterates | $49.00 | $52.00 | 6.1% |
| 2019-3-15 | Wedbush | Raises Target | $49.00 | $52.00 | 6.1% |
| 2019-3-15 | UBS Group | Raises Target | n/a | $54.00 | - |
| 2019-3-15 | Royal Bank of Canada | Raises Target | n/a | $57.00 | - |
| 2019-3-15 | Raymond James | Raises Target | $54.00 | $57.00 | 5.6% |
| 2019-3-15 | Mitsubishi UFJ Financial Group | Raises Target | $55.00 | $56.00 | 1.8% |
| 2019-3-15 | BMO Capital Markets | Downgrades | n/a | $53.00 | - |
| 2019-3-13 | JPMorgan Chase & Co. | Set Price Target | n/a | $53.00 | - |
| 2019-3-11 | Nomura | Reiterates | $53.00 | $42.00 | -20.8% |
| 2019-3-11 | Nomura | Downgrades | $53.00 | $42.00 | -20.8% |
| 2019-3-11 | Credit Suisse Group | Set Price Target | n/a | $60.00 | - |
| (in average) | $52.20 | $52.70 | 1.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Since last March, when Oracle published its last earnings report, it raised a slightly good 2.58%. Unfortunately, reported EPS is not yet available in our database.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.79 | n/a |
| 2017-Q3 | - | n/a | 0.54 | n/a |
| 2017-Q4 | 2018-03-19 | 0.72 | 0.83 | 15.3% |
| 2018-Q1 | 2018-03-19 | 0.66 | 0.75 | 13.6% |
| 2018-Q2 | 2018-06-19 | 0.87 | 0.91 | 4.6% |
| 2018-Q3 | 2018-09-17 | 0.61 | 0.62 | 1.6% |
| 2018-Q4 | 2018-12-17 | 0.7 | 0.74 | 5.7% |
| 2019-Q1 | 2019-03-14 | 0.76 | 0.78 | 2.6% |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2018, Oracle annual turnover jumped a nice 5.57% to $39,831.00 million dollars from $37,728.00 marked in 2017. When comparing 2018 vs 2017, nonetheless, profit margin (that is, the net income divided by revenues) collapsed a -15.14% to 9.60%. Oracle fiscal year ends in May, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Oracle TTM sales up to February 2019 were $39,831.00 and income $10,857.00 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Oracle business evolution since May 2018: Annual sales up to February, compared to lastest yearly report, remained steady a tight 0.00%. Regarding profit margin, Oracle boosted 17.65% to 9.60%| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $37,180 M | - | $10,930 M29.4% | - |
| 2014 | $38,280 M | 2.96% | $10,960 M28.6% | 0.27% |
| 2015 | $38,226 M | -0.14% | $9,938 M26.0% | -9.32% |
| 2016 | $37,047 M | -3.08% | $8,901 M24.0% | -10.43% |
| 2017 | $37,728 M | 1.84% | $9,335 M24.7% | 4.88% |
| 2018 | $39,831 M | 5.57% | $3,825 M9.6% | -59.03% |
| TTM | $39,831 M | 0.00% | $10,857 M27.3% | 183.84% |
Quarterly financial results
Oracle posted $9,614.00 million in revenues for 2019-Q1, a 0.54% improvement compared to previous quarter. Reported quarter income marked $2,745.00 million with a profit margin of 28.55%. Profit margin appreciated a 4.15% compared to previous quarter when profit margin was 24.40%. When comparing revenues to same quarter last year, Oracle sales marked a lame decrease and slightly fell a -1.61%. Looking back to recent quarterly results, Oracle posted 2 negative quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $10,890 M | - | $3,230 M29.7% | - |
| 2017-Q3 | $9,190 M | -15.61% | $2,210 M24.0% | -31.58% |
| 2017-Q4 | $9,621 M | 4.69% | $2,233 M23.2% | 1.04% |
| 2018-Q1 | $9,771 M | 1.56% | $-4,024 M-41.2% | -280.21% |
| 2018-Q2 | $11,462 M | 17.31% | $3,514 M30.7% | -187.33% |
| 2018-Q3 | $9,193 M | -19.80% | $2,265 M24.6% | -35.54% |
| 2018-Q4 | $9,562 M | 4.01% | $2,333 M24.4% | 3.00% |
| 2019-Q1 | $9,614 M | 0.54% | $2,745 M28.6% | 17.66% |
Oracle ownership
When you are planning to buy a stock, it's always worth to review its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Oracle, 33.39% of all outstanding shares are owned by its staff.
In case of Oracle stock, 58.60% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for ORCL stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Oracle:
| ORCL | ADBE | CRM | CTXS | INTU | |
|---|---|---|---|---|---|
| Market cap | $185.3 B | $134.4 B | $120.8 B | $12.6 B | $63.8 B |
| Total shares | 3,420.0 M | 488.0 M | 774.8 M | 132.1 M | 259.1 M |
| Float shares | 2,270.0 M | 486.4 M | 735.8 M | 130.8 M | 249.1 M |
| - Institutional holdings (%) | 58.6% | 88.9% | 84.8% | 103.2% | 90.0% |
| - Insider holdings (%) | 33.4% | 0.3% | 4.6% | 1.0% | 4.0% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Oracle summary
| Tuesday, May 21st, 2019 | |
|---|---|
| Open | $54.21 |
| Close | $54.17 |
| Day range | $54.03 - $54.27 |
| Previous close | $53.66 |
| Session gain | 0.95% |
| Average true range | $0.94 |
| 50d mov avg | $53.97 |
| 100d mov avg | $51.84 |
| 200d mov avg | $49.90 |
| Daily pattern | |
| Weekly pattern | lb03a |
Oracle performance
Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Oracle performance to Adobe, Salesforce.com, Citrix Systems, Intuit, Microsoft, QUALCOMM, Red Hat, and Symantec:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| ORCLOracle | 3.67% | 12.18% | 17.15% |
| ADBEAdobe | 6.39% | 22.12% | 13.09% |
| CRMSalesforce.com | -3.32% | 27.80% | 21.87% |
| CTXSCitrix Systems | -9.31% | -10.29% | -10.18% |
| INTUIntuit | -1.76% | 25.40% | 25.88% |
| MSFTMicrosoft | 14.16% | 23.44% | 30.41% |
| QCOMQUALCOMM | 45.92% | 41.81% | 33.25% |
| RHTRed Hat | 1.80% | 6.27% | 12.74% |
| SAP | 18.75% | 27.37% | 12.80% |
| SYMCSymantec | -11.56% | -7.30% | -3.47% |
Oracle competitors
One check before investing in any stock is to review a list of its competitors, in this case for Oracle. We chose 9 companies as Oracle competitors as they are in the same industry or have similar market objectives.- Adobe (ADBE)
- Salesforce.com (CRM)
- Citrix Systems (CTXS)
- Intuit (INTU)
- Microsoft (MSFT)
- QUALCOMM (QCOM)
- Red Hat (RHT)
- (SAP)
- Symantec (SYMC)
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