George H Conrades At Oracle Decides to Exercises Options Worth $2.08M

In a new SEC filing on April 23, it was revealed that Conrades, Director at Oracle ORCL, executed a significant exercise of company stock options.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday revealed that Conrades, Director at Oracle in the Information Technology sector, exercised stock options for 22,500 shares of ORCL stock. The exercise price of the options was $43.49 per share.

During Thursday's morning session, Oracle shares up by 3.36%, currently priced at $135.82. Considering the current price, Conrades's 22,500 shares have a total value of $2,077,424.

About Oracle

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.

Key Indicators: Oracle's Financial Health

Revenue Growth: Oracle's revenue growth over a period of 3 months has been noteworthy. As of 28 February, 2025, the company achieved a revenue growth rate of approximately 6.4%. This indicates a substantial 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.

Profitability Metrics: Unlocking Value

• Gross Margin: The company faces challenges with a low gross margin of 70.31%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Oracle's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.05.

Debt Management: With a below-average debt-to-equity ratio of 5.75, Oracle adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 30.85 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 6.73, 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): With an EV/EBITDA ratio lower than industry averages at 19.18, Oracle could be considered undervalued.

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

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Exploring the Significance of Insider Trading

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Cracking Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.

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