U.S. markets open in 14 minutes
  • S&P Futures

    4,545.50
    +21.25 (+0.47%)
     
  • Dow Futures

    35,037.00
    +127.00 (+0.36%)
     
  • Nasdaq Futures

    15,182.00
    +148.50 (+0.99%)
     
  • Russell 2000 Futures

    2,067.20
    +8.00 (+0.39%)
     
  • Crude Oil

    86.75
    -0.21 (-0.24%)
     
  • Gold

    1,845.10
    +1.90 (+0.10%)
     
  • Silver

    24.41
    +0.17 (+0.72%)
     
  • EUR/USD

    1.1355
    +0.0008 (+0.07%)
     
  • 10-Yr Bond

    1.8270
    0.0000 (0.00%)
     
  • Vix

    22.95
    +0.16 (+0.70%)
     
  • GBP/USD

    1.3634
    +0.0022 (+0.16%)
     
  • USD/JPY

    114.0870
    -0.2660 (-0.23%)
     
  • BTC-USD

    42,443.60
    +284.48 (+0.67%)
     
  • CMC Crypto 200

    1,010.26
    +15.51 (+1.56%)
     
  • FTSE 100

    7,573.18
    -16.48 (-0.22%)
     
  • Nikkei 225

    27,772.93
    +305.70 (+1.11%)
     

Who Really Owns Oracle Corporation (NYSE:ORCL)?

  • Oops!
    Something went wrong.
    Please try again later.
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

A look at the shareholders of Oracle Corporation (NYSE:ORCL) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’

With a market capitalization of US$196.07b, Oracle is rather large. We’d expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about ORCL.

View our latest analysis for Oracle

NYSE:ORCL Ownership Summary September 17th 18
NYSE:ORCL Ownership Summary September 17th 18

What Does The Institutional Ownership Tell Us About Oracle?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors own 58.2% of Oracle. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Oracle’s historic earnings and revenue, below, but keep in mind there’s always more to the story.

NYSE:ORCL Income Statement Export September 17th 18
NYSE:ORCL Income Statement Export September 17th 18

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don’t have many shares in Oracle. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Oracle

The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Oracle Corporation. Insiders own US$56.04b worth of shares in the US$196.07b company. That’s quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, with a 13.2% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Oracle better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.