Free Custom «Oracle Corporation» Essay Paper

According to the New York (AVAFIN), the Wednesday, 17^th October, 2012 stock trading session came to end with Oracle Corporation shares closing under the fifty day period moving average of $ 31.37. This development from technical perspective is sign of great weakness, especially when stock price is compared against its entire moving average. This will be a clear indication of bearishness according to the investors, especially if the current trajectory is maintained by the stock movement.

Traders or investors rely upon moving averages concepts, so as to make informed decision on investments or fully informed investment decisions. Moving averages are very important such that they provide traders with reliable entry and exit signals. Traders are advised not to fully rely on moving averages alone. Moving averages should therefore be used along with other indicators so as to correctly confirm the price movements and trends.

Oracle Corporation deals in the developing, manufacturing, marketing, distributing and servicing databases and middleware softwares. It also deals in the applications of softwares that are designed so as to assist its clients to manage and help their business operations grow. Performance metrics show that Oracle Corporation stock has made a gain of 1.78% within the previous year. The average rating of the stock by analysts is growing.

 

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In March 2012, the Oracle Corporation announced that its total revenues had grown up by 3% to $9.0 billion in the fourth quarter of 2011, in accordance to Generally Accepted Accounting Principles (GAAP). Non-GAAP total revenues were also up by 3% to $ 9.1 billion. GAAP earnings per share went up by 20 % to earn $ 0.49. Earnings per share for non-GAAP went up by 15 % to generate $ 0.62. According to the report, operating cash flow for GAAP for a twelve months period was % 13.5 billion.

The market value of the Oracle Corporation stock as at October 2012 was $148 billion. The current last sale as at October 19^th, 2012 was at $ 30,475. This was a negative change of $ 0.64 represented by 2.06 %. The target price for the Oracle Corporation share is forecast at $ 32 and 95 % increase. For the 52 weeks’ period, the Oracle Corporation share has ever attained a highest value of $ 33.81. When this value is compared to the current closing price, it indicates a 10 % decrease in the shares’ value. For a period of 52 weeks the lowest ever price value for the Oracle Corporation shares was $ 24.91 (Y charts 2012). As compared to the current closing share price value, this 52 week low price is 22% lower.

Nasdaq states that the average volume of the Oracle Corporation shares traded as at 19^th October, 2012 is 26,239,684. The average daily volume of shares traded is 22,111,027. The Oracle’s beta or measure of the stock’s price value volatility, as related to the market, stands at 1.32. The short interest for the shares traded averagely stands at 29,159,794. As at this date, the percentage of shares outstanding for the Oracle Corporation is only 1%. The shares outstanding are 4,882,506,000.

As at 19^th October, 2012, the Zacks outlines that Oracle Corporation’s earning per share (EPS) stood at $2.02. This was averagely higher than other great companies in the market. The price-to-earning ratio (P/E) for the Oracle Corporation shares was estimated at 15.09. This value shows a decline from high P/E ratio of 21.79 as at February, 2011. The projected earning growth (PEG) for the Oracle’s shares is estimated to be about 0.767.

The annualized dividend for the Oracle Corporation shareholders stands at an average of 0.24. The dividend yield for the shares at the period is 0.77. Mean recommendation for the Oracle Corporation shares are estimated at 1.90. In the same breadth the forecast earning growth for the corporation’s shares is estimated at 18.49%, whereas the industry forecast earning growth stands at 18.63%. The growth rate relative to the industry is estimated to -0.14%. The total stockholders’ equity as at August, 2012 was 43,329.00, while the total liabilities and stockholders’ equity was 76,151.00. The Oracle Corporation treasury stock as at August, 2012 was nil. As at 30^th September, 2012, the stock type for the Oracle Corporation was institutional with 1411 owners holding 2,948,325,000 shares standing at 61.18% (American Investors Services 45).