Oracle Co. Declares Quarterly Dividend

Oracle Co. (NYSE:ORCL) announced on December 9th that it will issue a quarterly dividend of $0.40 per share. This dividend payment will benefit stockholders who are on record as of January 23rd, with the payment scheduled for January 9th. Annually, this amounts to a total dividend of $1.60 per share, translating to a dividend yield of 0.84%.

Oracle has a commendable history of increasing its dividend payments, boasting an average annual increase of 16.6% over the past three years. The company has consistently raised its dividend each year for the last 15 years. Its current dividend payout ratio stands at 22.4%, which suggests that its earnings comfortably cover the dividend payments. Analysts anticipate that Oracle will report earnings of $5.75 per share next year, indicating the company will be able to maintain its annual dividend payout with a projected payout ratio of 27.8%.

Recent Stock Performance

On the trading day following the announcement, Oracle's stock price decreased by 0.6%, settling at $190.54. The trading volume for the day reached 18,471,595 shares, notably higher than the average volume of 8,278,780. With a 50-day moving average of $179.36 and a 200-day moving average of $154.20, Oracle's stock illustrates a solid growth trend. The company's market capitalization is reported at $528 billion, with a P/E ratio of 49.32, a PEG ratio of 3.49, and a beta of 1.03. Over the past year, Oracle's stock has fluctuated between a low of $99.26 and a high of $198.31.

Recent Earnings Results

In its latest earnings report, released on September 9th, Oracle posted earnings of $1.39 per share, exceeding analysts' expectations of $1.33 by $0.06. The company achieved a net profit margin of 20.40% and a remarkable return on equity of 171.38%. Total revenue for this quarter was recorded at $13.31 billion, slightly above the consensus estimate of $13.23 billion. This revenue reflects a year-over-year increase of 6.9% from the same quarter last fiscal year. Looking ahead, analysts forecast Oracle will generate earnings of $5.06 per share for the current fiscal year.

Insider Activity

Recent insider trading activity included the sale of 6,320 shares by EVP Maria Smith on September 16th, with an average selling price of $165.00, resulting in total proceeds of approximately $1,042,800. Following this transaction, Smith holds 42,889 shares in the company, valued at around $7,076,685. This sale reflects a 12.84% reduction in Smith's ownership stake. Currently, 42.20% of Oracle's stock is owned by insiders.

Analyst Ratings

Oracle has received attention in recent analyst reports, with Jefferies Financial Group raising their price target for Oracle from $190.00 to $220.00 while maintaining a "buy" rating. Mizuho also increased their target from $170.00 to $185.00, labeling the company with an "outperform" rating. Meanwhile, Oppenheimer reaffirmed a "market perform" rating, and Royal Bank of Canada set a target price of $165.00. Guggenheim notably raised their estimate from $200.00 to $220.00 with a "buy" rating. Overall, among equity research analysts, Oracle enjoys a relatively positive outlook, holding an average rating of "Moderate Buy" with a target price of $171.52.

Conclusion

Oracle's declaration of a quarterly dividend reflects the company’s commitment to returning value to shareholders. With a strong history of dividend increases, consistent earnings, and favorable analyst ratings, Oracle remains a notable player in the enterprise software sector.

Oracle, Dividend, Stocks