Oracle Stock Hits New High On Earnings, Analysts Raise Targets

Oracle Earnings Top Forecasts As Total Cloud Revenue Jumps 62%

Oracle Corporation Boosts Dividend 27% As Q3 Earnings Top Expectations

Several equities research analysts recently issued reports on the stock.

On Thursday BMO Capital Markets reiterated its broker consensus on shares of Oracle Corporation (NYSE:ORCL) giving the company a "Outperform" rating.

With this move, Oracle took away one of Amazon's cloud service's main selling points, which is the cheaper route to the cloud and presented its own cloud platform as the cheaper option.

Oracle has a 52 week low of $37.62 and a 52 week high of $43.26 with a PE ratio of 20.55 Oracle's market capitalization is now $0.

Canaccord Genuity analyst Richard Davis raised his price target on Oracle to 49 from 45 and maintained a buy rating.

Shares of Oracle traded up to $45.73 on Thursday, their highest close since December 2014. Following the transaction, the director now owns 52,654 shares in the company, valued at approximately $2,038,762.88. The firm has a 50-day moving average price of $41.59 and a 200-day moving average price of $39.92.

Oracle (NYSE:ORCL) last issued its quarterly earnings results on Wednesday, March 15th.

"Given inconsistent performance, we believe that Oracle's quarter and guidance, while not spectacular, is enough to push the shares higher", Bachman wrote in a research note. When that happens, earnings per share will "ramp up throughout the year" and Oracle will return to the same pattern of growth it delivered the previous decade during the license business heyday, she said. The company had revenue of $9.27 billion for the quarter, compared to the consensus estimate of $9.25 billion. Oracle's revenue was up 2.9% on a year-over-year basis.

Oracle (ORCL) hit a record high Wednesday after receiving a series of post-earnings upgrades in which analysts said the database software company was on track with its cloud-computing upgrade. As Oracle lifted its quarterly cash dividend by 27% to 19 cents a share, Bracelin suggested it was a reward for investors who have held on through the rocky transition. This represents a $0.76 annualized dividend and a dividend yield of 1.77%. Oracle's dividend payout ratio is 28.99%.

In other Oracle news, Director Naomi O. Seligman sold 45,000 shares of the company's stock in a transaction dated Wednesday, December 21st. The shares were sold at an average price of $38.72, for a total value of $1,742,400.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. ORCL stock also got a boost on this acquisition. The stock was sold at an average price of $39.09, for a total transaction of $146,587.50. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 56,250 shares of company stock worth $2,195,738.

Oracle said its infrastructure-as-a-service business, which competes with much larger rivals such as Amazon.com Inc.'s AMZN, +0.00% Amazon Web Services and Microsoft Corp.'s MSFT, -0.17% Azure, will likely outpace its other revenue services and become the leading revenue generator of its cloud business, though it didn't provide a time frame on when it might overtake everything else.

For a long time, the focus of cloud growth remained on software-as-a-service (SaaS) and platform-as-a-service (PaaS). That's probably not surprising, given the former's decision to invest heavily in its infrastructure-as-a-service (IaaS) business as a way to offset declines in revenues for its licensed software business.

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