The tech giant earned no less than five price hikes this morning
The shares of Oracle Corporation (NYSE: ORCL) are down 6.6% to $ 67.36 on the latest review, despite the tech giant posting better-than-expected fiscal third-quarter earnings of $ 1.16 per share – higher than Wall Street estimates of $ 1.11 per share – as well as reported a decline in sales. While the cloud business failed to meet expectations, the company attributed the positive results to strong demand for cloud computing services as remote working became more common during the Covid-19 pandemic.
Despite the slump that morning, the brokerage group is reacting with optimism. The security has seen at least five price increases this morning, including one from Monness Crespi Hardt to $ 93 from $ 82. It also received a price cut by BMO to $ 79 from $ 80. Analysts were skeptical of ORCL as 14 of the 22 reported had a lukewarm “hold” rating while eight said “buy” or better. Additionally, the 12 month consensus target of $ 68.82 is a low 3.6% premium from current levels.
Just yesterday, equity hit a new all-time high of $ 73.60. And while stocks are cooling off now, the 60-day moving average has been a steady source of support and appears poised to contain today’s pullback. Compared to the previous year, ORCL has still increased by 48.8%.
Meanwhile, the option pits are firmly in bullish camp, with calls popular. This corresponds to the stock’s 50-day call / put volume ratio of 4.91 on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX), which is over 92% of the other stocks from the past lies year. In simpler terms, calls are answered faster than usual.
44,000 puts and 72,000 calls have already exceeded the band, which is seven times the intraday average. The most popular is the 3/12 67 strike call, followed by the 65 strike call in the same weekly series, with new positions currently being opened in both places.
Now could be a great opportunity to weigh ORCL’s next step with options. The Schaeffer’s Volatility Index (SVI) of 42% is in the relatively low 20th percentile of its annual range. This means that the safety sports are currently offered at attractive prices.