Lawrence J. Ellison Sees Potential Growth And Acquires $1.67M In Oracle Stock Options

On October 28, Ellison, Executive Chairman at Oracle (NYSE:ORCL), executed a strategic insider move by acquiring stock options for 571,286 shares.

What Happened: In a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Ellison, Executive Chairman at Oracle, acquired stock options for 571,286 shares of ORCL. These options provide Ellison with the right to purchase the company's stock at $280.07 per share.

Oracle shares are trading up 0.57% at $283.0 at the time of this writing on Tuesday morning. Since the current price is $283.0, this makes Ellison's 571,286 shares worth $1,673,867.

All You Need to Know About Oracle

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.

Oracle's Economic Impact: An Analysis

Revenue Growth: Oracle displayed positive results in 3 months. As of 31 August, 2025, the company achieved a solid revenue growth rate of approximately 12.17%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Navigating Financial Profits:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 67.28%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Oracle's EPS is below the industry average. The company faced challenges with a current EPS of 1.04. This suggests a potential decline in earnings.

Debt Management: Oracle's debt-to-equity ratio surpasses industry norms, standing at 4.36. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 65.14 is lower than the industry average, implying a discounted valuation for Oracle's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 13.73, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 36.46 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Importance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga's automated content engine and reviewed by an editor.