Leon E Panetta, Director at Oracle ORCL, reported a large exercise of company stock options on May 6, according to a new SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday revealed that Panetta, Director at Oracle in the Information Technology sector, exercised stock options for 17,500 shares of ORCL stock. The exercise price of the options was $43.49 per share.
Currently, Oracle shares are trading up 0.32%, priced at $148.18 during Wednesday’s morning. This values Panetta’s 17,500 shares at $1,832,059.
Get to Know Oracle Better
Oracle provides enterprise applications and infrastructure offerings around the world 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 for running online transaction processing and data warehousing workloads. Besides database systems, Oracle also sells enterprise resource planning, or ERP, customer relationship management, or CRM, and human capital management, or HCM, applications. Today, Oracle has more than 159,000 full-time employees in over 170 countries.
Oracle: Delving into Financials
Revenue Growth: Oracle displayed positive results in 3 months. As of 28 February, 2025, the company achieved a solid revenue growth rate of approximately 6.4%. This indicates a notable increase in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Key Insights into Profitability Metrics:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 70.31%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): Oracle’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.05.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 5.75.
Valuation Analysis:
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Price to Earnings (P/E) Ratio: The P/E ratio of 34.67 is lower than the industry average, implying a discounted valuation for Oracle’s stock.
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Price to Sales (P/S) Ratio: The P/S ratio of 7.56 is lower than the industry average, implying a discounted valuation for Oracle’s stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 21.14, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
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Unmasking the Significance of Insider Transactions
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Important Transaction Codes
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
