Oracle Corp. posted its latest financial results a day earlier than expected Wednesday. Additionally, the company announced that its co-CEO Mark Hurd is taking a medical leave of absence. The news led to a sudden, sharp -5.29% decline in Oracle shares in after-hours trading Wednesday.
The cloud tech/software company’s adjusted earnings for the latest reported quarter came in at 81 cents a share, in line with estimates compiled by FactSet. The earnings per share are higher than the year-ago quarter’s 71 cents a share.
Revenue of $9.2 billion, however, was a bit lower than analysts’ expectation of $9.3 billion. Its year-ago revenue was $9.2 billion.
But what probably gave a jolt to Oracle’s shares in extended trading Wednesday was news of Mark Hurd, one of the two CEOs of the company, taking a leave of absence for health reasons - nine years after joining the company from Hewlett-Packard.
In Hurd’s absence, Larry Ellison, Oracle’s founder and chief technology officer, will handle Hurd’s responsibilities along with Safra Catz, the other CEO.
Hurd will receive his benefits during his leave, according to Oracle’s regulatory filing on Wednesday. In the fiscal year 2018, Hurd received $108.3 million in total compensation, according to Oracle’s most recent proxy statement.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where ORCL declined for three days, in of 258 cases, the price declined further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for ORCL moved out of overbought territory on December 04, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 similar instances where the indicator moved out of overbought territory. In of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where ORCL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on December 05, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on ORCL as a result. In of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ORCL turned negative on December 04, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
ORCL broke above its upper Bollinger Band on November 08, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
ORCL moved above its 50-day moving average on November 08, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ORCL crossed bullishly above the 50-day moving average on November 14, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ORCL advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 337 cases where ORCL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ORCL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (135.135) is normal, around the industry mean (21.032). P/E Ratio (34.483) is within average values for comparable stocks, (159.368). Projected Growth (PEG Ratio) (1.340) is also within normal values, averaging (2.584). Dividend Yield (0.013) settles around the average of (0.083) among similar stocks. P/S Ratio (6.353) is also within normal values, averaging (74.518).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of a diversified line of business software products
A.I.dvisor indicates that over the last year, ORCL has been loosely correlated with SNPS. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if ORCL jumps, then SNPS could also see price increases.