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Software Stock Hits Record High Ahead of Earnings

Oracle will announce its fiscal fourth-quarter earnings report after the close today

Deputy Editor
Jun 12, 2023 at 11:10 AM
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Oracle Corp (NYSE:ORCL) is trading at record highs today, up 4.5% at $114.78 at last glance, and earlier hitting a peak of $116.00. The software name is announcing its fiscal fourth-quarter earnings report after the close today, in which analysts anticipate profits of $1.58 per share. J.P. Morgan Securities raised its price target to $109 from $93 ahead of the results, and over the weekend, Wolfe Research upgraded the shares to "outperform from "peer perform," citing tailwinds related to artificial intelligence (AI). 

ORCL has finished three of its past eight post-earnings sessions higher, including a 10.4% pop last June. This time around, options traders are pricing in a next-day swing of 12.6%, regardless of direction, which is higher than the 5.2% move the stock has averaged over the past two years. 

Oracle stock's options pits are lively already. So far today, 74,000 calls and 27,000 puts have crossed the tape, which is seven times the amount typically seen at this point. Expiring at the end of this week, the June 127 call is the most active contract, with new positions being opened. 

There is plenty of room for further bull notes after earnings. Of the 24 analysts in coverage, 13 carry a "hold" or worse rating, while the 12-month consensus price target of $105.15 is an 8.6% discount to current levels. 

 

 

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