It was reported on October 1, that Naomi O Seligman, Director at Oracle (NYSE:ORCL) executed a significant insider sell, according to an SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Seligman executed a sale of 2,222 shares of Oracle with a total value of $641,958.
The latest update on Wednesday morning shows Oracle shares up by 0.18%, trading at $281.76.
Discovering Oracle: A Closer Look
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's remarkable performance in 3 months is evident. As of 31 August, 2025, the company achieved an impressive revenue growth rate of 12.17%. This signifies a substantial 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.
Interpreting Earnings Metrics:
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Gross Margin: The company faces challenges with a low gross margin of 67.28%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Oracle's EPS is below the industry average. The company faced challenges with a current EPS of 1.04. This suggests a potential decline in earnings.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 4.36, caution is advised due to increased financial risk.
Valuation Metrics:
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 65.1, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: With a P/S ratio of 13.73 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 36.44, 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
Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Essential Transaction Codes Unveiled
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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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