Today Oracle Corporation (NYSE:ORCL) announced that they are set to begin building a new Cloud campus in Austin, Texas. The campus, which will rely on next-generation technology will allow the company to compete in the rapidly developing cloud space. In addition to constructing the new facility, the company will also be expanding their workforce in Austin by more than 50%.
“What Oracle is doing in Austin reinforces what I’m talking about when I say that great cities do big things, especially in the technology sector,” said Austin Mayor Steve Adler. “With this significant investment, Oracle demonstrates that it believes in Austin and its future, and it’s serious about creating fantastic job opportunities in our community. I look forward to working with major employers like Oracle to tackle our biggest challenges, including Mobility and Affordability.”
The campus, which will be constructed on the beautiful waterfront of Austin’s Lady Bird Lake, will include a 560,000-square-foot complex as well as parking development. Additionally a 295-unit apartment building will be purchased by Oracle to house some of the new employees. The stock is up 0.47% or $0.17 following the news, hitting $36.59 per share. About 9.40 million shares traded hands. ORCL has declined 17.82% since May 19, 2015 and is downtrending. It has underperformed the S&P500 by 15.56%.
From a total of 13 analysts covering Oracle (NYSE:ORCL) stock, 8 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 62% of the ratings are positive. The highest target price is $50 while the lowest target price is $43. The mean of all analyst targets is $45.11 which is 23.29% above today’s ($36.59) stock price. Oracle was the topic of 14 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. Goldman Sachs upgraded shares on November 16 to a “Conviction Buy” rating. BTIG Research initiated shares with a”Buy” rating and a $44 target share price in their report from a September 10. FBR Capital downgraded ORCL stock in a recent report from November 5 to a “Mkt Perform” rating. Finally, JMP Securities downgraded the stock to a “Mkt Perform” rating in a report they issued on an October 14.
The institutional sentiment decreased to 0.72 in Q2 2015. It’s down 0.15, from 0.87 in 2015Q2. The ratio fall, as 130 funds sold all their Oracle Corporation shares they owned while 622 reduced their positions. 67 funds bought stakes while 471 increased their total positions. Institutions now own 2.29 billion shares which is 9.81% less than the previous share count of 2.54 billion in 2015Q2.
Black Creek Investment Management Inc. holds 12.2% of its total portfolio in Oracle Corporation, equating to 2.57 million shares. Caledonia Investments Plc owns 862,500 shares representing 11.21% of their total US portfolio. Moreover, Mountain Lake Investment Management Llc has 9.09% of their total portfolio invested in the company, equating to 312,500 shares. The Alabama-based Vulcan Value Partners Llc has a total of 8.17% of their portfolio invested in the stock. Veritas Investment Management Llp, a United Kingdom-based fund reported 983,915 shares owned.
Oracle Corporation is a provider of enterprise software and computer hardware products, and services. The company has a market cap of $153.60 billion. The Company’s offerings include Oracle database and middleware software, application software, cloud infrastructure, hardware systems including computer server, storage and networking products, and related services. It has 17.61 P/E ratio.