1. Oracle Corporation (NYSE:ORCL)
Millennium Management’s Stake Value: $365,201,000
Oracle Corporation (NYSE:ORCL) is a California-based computer software company that specializes in cloud applications and cloud platform services. In Q2 2022, Millennium Management owned over 5.2 million shares in the company, increasing its stake by 269%. The total ORCL stake of the fund amounted to over $365 million and represented 0.22% of Israel Englander’s portfolio.
On June 13, Oracle Corporation (NYSE:ORCL) declared a 19% hike in its quarterly dividend to $0.32 per share. The company has been raising its dividend payments for the past 12 years and increased its payout by 13.32% in the last five years. As of August 26, the stock’s dividend yield stood at 1.71%.
In August, Guggenheim initiated its coverage of Oracle Corporation (NYSE:ORCL) with a ‘Buy’ rating and a $107 price target, appreciating the company’s organic cloud revenue and database performance in the past.
At the end of Q2 2022, 69 hedge funds tracked by Insider Monkey owned stakes in Oracle Corporation (NYSE:ORCL), up from 61 in the previous quarter. Those stakes were collectively valued at over $4.1 billion.
Oakmark Funds mentioned Oracle Corporation (NYSE:ORCL) in its Q2 2022 investor letter. Here is what the firm had to say:
“The sell-off in the enterprise software sector, combined with the complexity related to the acquisition of Cerner, provided an opportunity for us to re-establish a position in Oracle (NASDAQ:ORCL). Oracle is one of the world’s largest and most profitable software companies-generating more than $42 billion in revenue and 40% operating margins. We have always admired the stability of Oracle’s business and the strength of its customer relationships. Now, the company’s organic growth is beginning to accelerate. Specifically, total revenue grew 7% in fiscal year 2022 and 10% in the fourth fiscal quarter. In addition, management believes that Cerner’s growth and margins can be higher under Oracle’s ownership than it could on a standalone basis. Finally, we commend Oracle’s repurchase of roughly half its share base over the past decade, which has nearly doubled each remaining share’s interest in the business. Trading for only 12x calendar 2023 earnings ex-cash, we believe Oracle’s risk/reward is attractive.”
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