Charles Moorman, a director at Oracle (ORCL), recently bought 5,000 shares. The buy increased his stake by 7%, and came to a total cost of $947,913.
This marks the first insider buy at the company in over two years. Otherwise, company insiders have been regular sellers of shares as the stock has taken off. Nearly all insider sales have come following the exercise of stock options, from company directors and VPs to the company’s CFO, and major holder Larry Ellison.
Overall, Oracle insiders own 41.4% of shares.
The database software and cloud services company has rallied 60% over the past year, performing nearly three times as well as the overall stock market.
Operationally, earnings are up 26%. Revenues are only up about 9%, but Oracle has been successful over the past two years at building out its AI services platform, and looks set to continue performing well, even given its significant size. Profit margins have been heading higher, and just topped 21%.
Action to take: Investors may like shares here, and should look to add to their position on any pullback in shares. At current prices, Oracle also pays a 0.9% dividend.
For traders, shares are in a strong uptrend and look set to continue higher in the months ahead. The May $185 calls, last trading for about $8.35, can likely see mid-double-digit returns in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.