Disclosed on December 24, Clayton M Magouyrk, Chief Executive Officer at Oracle (NYSE:ORCL), executed a substantial insider sell as per the latest SEC filing.
What Happened: Magouyrk's decision to sell 10,000 shares of Oracle was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,925,152.
The latest update on Wednesday morning shows Oracle shares up by 0.72%, trading at $196.75.
<h3>Get to Know Oracle Better</h3>
Oracle provides enterprise applications and infrastructure offerings 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 by the world's largest companies for high-volume online transaction processing workloads. Besides databases, Oracle also sells enterprise resource planning platforms and cloud infrastructure that play an increasingly important role in large language model training and inferencing.
<h3>Breaking Down Oracle's Financial Performance</h3>
Revenue Growth: Oracle's remarkable performance in 3 months is evident. As of 30 November, 2025, the company achieved an impressive revenue growth rate of 14.22%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Evaluating Earnings Performance:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 66.53%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): Oracle's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.14.
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Debt Management: Oracle's debt-to-equity ratio is notably higher than the industry average. With a ratio of 4.15, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Analyzing Market Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 36.72 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 9.27, Oracle's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio of 23.49 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
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Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
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<h3>Exploring the Significance of Insider Trading</h3>
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
In the context of legal matters, the term &#34;insider&#34; refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
<h3>Cracking Transaction Codes</h3>
Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes 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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This article was generated by Benzinga's automated content engine and reviewed by an editor.

ORCL

Clayton M Magouyrk, CEO of Oracle, sold 10,000 shares worth $1.93M, as per SEC filing on December 24. Oracle's stock rose by 0.72% to $196.75. Oracle, known for its enterprise applications and cloud infrastructure, reported a 14.22% revenue growth but faces challenges with a low gross margin of 66.53% and a high debt-to-equity ratio of 4.15. The company's P/E ratio of 36.72 suggests potential undervaluation, while a P/S ratio of 9.27 indicates overvaluation in sales performance.

Insider Decision: Clayton M Magouyrk Offloads $1.93M Worth Of Oracle Stock