Insider Transaction: Naomi O Seligman Sells $428K Worth Of Oracle Shares

Disclosed on May 6, Naomi O Seligman, Director at Oracle ORCL, executed a substantial insider sell as per the latest SEC filing.

What Happened: Seligman opted to sell 2,866 shares of Oracle, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $428,561.

Tracking the Wednesday's morning session, Oracle shares are trading at $148.09, showing a up of 0.26%.

Unveiling the Story Behind 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.

Breaking Down Oracle's Financial Performance

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. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Insights into Profitability:

• 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 significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.05.

Debt Management: Oracle's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 5.75.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 34.67, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 7.56, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in 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 21.14, Oracle could be considered undervalued.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Why Pay Attention to Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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.