On October 24, a recent SEC filing unveiled that Clayton M Magouyrk, Chief Executive Officer at Oracle (NYSE:ORCL) made an insider sell.
What Happened: Magouyrk opted to sell 40,000 shares of Oracle, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The transaction's total worth stands at $11,065,508.
In the Friday's morning session, Oracle's shares are currently trading at $283.38, experiencing a up of 1.18%.
Discovering Oracle: A Closer Look
Oracle provides enterprise applications and infrastructure offerings through a variety of flexible IT deployment models, including on-premises, cloud-based, and hybrid. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system, which is commonly used by the world's largest companies for high-volume online transaction processing workloads. Besides databases, Oracle also sells enterprise resource planning platforms and cloud infrastructure that play an increasingly important role in large language model training and inferencing.
Financial Insights: Oracle
Positive Revenue Trend: Examining Oracle's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.17% as of 31 August, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Evaluating Earnings Performance:
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Gross Margin: With a low gross margin of 67.28%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
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Earnings per Share (EPS): Oracle's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.04.
Debt Management: Oracle's debt-to-equity ratio stands notably higher than the industry average, reaching 4.36. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Market Valuation:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 64.83 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 13.67, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 36.3, Oracle presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
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Unmasking the Significance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
A Deep Dive into Insider Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Oracle's Insider Trades.
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