Oracle Corp (ORCL, Financial) has reported a significant insider sell by CEO Safra Catz, according to a recent SEC filing. On March 27, 2024, the insider executed a sale of 2,750,000 shares of the company. This transaction has caught the attention of investors and market analysts, as insider activity can provide insights into a company's financial health and future prospects.
Oracle Corp, a global provider of enterprise cloud computing and software services, is known for its comprehensive and fully integrated stack of cloud applications, platform services, and engineered systems. The company's offerings include a wide array of software as a service, platform as a service, infrastructure as a service, and data as a service capabilities.
Over the past year, Safra Catz has sold a total of 7,750,000 shares and has not made any share purchases. This latest transaction continues the trend of insider selling at Oracle Corp, with a total of 14 insider sells and no insider buys reported over the same period.
On the valuation front, Oracle Corp shares were trading at $126.1 on the day of the insider's recent sale, resulting in a market capitalization of $344.31 billion. The company's price-earnings ratio stands at 33.05, which is above both the industry median of 27.09 and Oracle Corp's historical median price-earnings ratio.
The stock's price relative to the GuruFocus Value (GF Value) indicates that Oracle Corp is modestly overvalued. With a share price of $126.1 and a GF Value of $109.89, the price-to-GF-Value ratio is 1.15. The GF Value is calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates provided by Morningstar analysts.
The insider's decision to sell a substantial number of shares may be interpreted in various ways by investors. However, it is essential to consider the broader context of the company's performance, market conditions, and the insider's personal financial decisions when evaluating the significance of this transaction.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
