Insiders Are Trading Shares in This Mega Software Company

Members of the Board of Directors and senior management at Oracle (NASDAQ:ORCL) have recently made large sales of their stake in the company.  Of the following insiders who recently recorded transactions in Oracle stock, only one retains a stake worth more than $1 million.

Oracle’s stock has return 7.83% year-to-date, compared to a 4.94% increase in the PowerShares QQQ Trust, Series 1 (NASDAQ:QQQ).  Over the past 52 weeks, Oracle’s stock has increased 30.66%, compared to QQQ’s rise of 17.23%.  Oracle remains solidly profitable: its 2010 net profit margin was 22.87%, its 2010 operating margin was 33.79%, and its 2010 EBITD margin was 42.36%.  Its return on average assets was 11.26% in 2010 and 12.58% in the first quarter of 2011.  Its return on average equity was 21.95% in 2010 and 23.9% in the first quarter of 2011.  Its market capitalization is 170,790,000,000 as of today’s trading, and there are 5,060,000,000 shares outstanding.  With a beta of 1.11, its stock is 11% more volatile than the market overall.

Following are the details on the transactions:

  • Jeffrey Berg, who is a Director, exercised 60,000 options on March 29th at a cost per option of $14.51.  He subsequently sold 60,000 shares at a market price of $32.50 on March 29th, for net proceeds of $1,079,400.  He retains 5,000 shares in the company with a market value of $170,400.  He has been a member of the board of directors since 1997.  He is the Chairman and Chief Executive Officer of the talent agency International Creative Management.
  • H. Raymond Bingham, who is a Director, exercised 30,000 options on April 4th at a cost of $13.68 per option, and subsequently sold 30,000 shares at a price of $34.18 per share, for net proceeds of $614,915.  He retains 5,000 shares in the company with a market value of $170,400.  He has been a member of the board of directors since 2002.  He is also Managing Director of General Atlantic and had previously worked in senior management roles at Cadence Design Systems(NASDAQ:CDNS).
  • Dorian Daley, who is Senior Vice President, General Counsel and Secretary, exercised 45,000 options on March 29th at a cost of $17.99 per option and subsequently sold 45,000 shares at a market price of $32.85 on March 29th.  The net proceeds from these transactions was $668,533.  He presently holds 5,000 shares in the company with a market value of $170,400.
  • Donald L. Lucas, who is a Director, exercised 92,500 options at a cost of $19.40 per option, on March 29th.  He subsequently sold 92,500 shares at a market price of $32.98 on March 29th, for net proceeds of $1,256,639.  He presently holds 0 shares in the company with a market value of $0.  He has been a member of the board of directors since 1980.  He is Chairman of the Board of Directors of Theranos and serves of the boards of Cadence Design Systems (NASDAQ:CDNS), DexCom (NASDAQ:DXCM), Vimicro International Corporation (NASDAQ:VIMC), 51job (NASDAQ:JOBS) and Spansion (NYSE:CODE).
  • Charles Rozwat, who is Executive Vice President, Operations and Customer Services, exercised 470,000 options on April 1st at a cost of $12.34 per option, and subsequently sold 470,000 shares at a market price of $33.88 on April 1st.  The net proceeds from these transactions was $10,125,210.  He presently holds 32,690 shares worth $1,114,075.

Other insiders at Oracle include:

  • Larry Ellison: the founder and Chief Executive Officer of Oracle.
  • Jeffrey O. Henley: the Chairman of Oracle.  He has worked at Oracle since 1991.
  • Safra A. Catz: She is a President of Oracle.  She also serves on the board of directors of HSBC Holdings plc (NYSE:HBC).
  • Mark V. Hurd: He is a President of Oracle.  He previously served as Chairman of the Board, Chief Executive Officer, and President of Hewlett-Packard (NYSE:HP).  He previously worked at NCR Corporation as its Chief Executive Officer and President.
  • Dr. Michael J. Boskin: He has been a member of Oracle’s Board of Directors since 1994.  He is an economics professor at Stanford University and he also serves as a Director of Exxon Mobil Corporation (NYSE:XOM) and Vodafone Group PLC (NYSE:VOD).
  • George H. Conrades: He has been a member of the board of directors since 2008.  He is the Executive Chairman of Akamai Technologies, Inc. (NASDAQ:AKAM).  He has previously worked in executive positions at GTE Coproration (NYSE:VZ),BBN Corporation (NYSE:RTN), and IBM (NYSE:IBM).  He also serves as a director at Cardinal Health, Inc. (NYSE:CAH) and Harley-Davidson, Inc. (NYSE:HOG).
  • Hector Garcia-Molina: He has been a member of the board of directors since 2001.  He is a computer science and electrical engineering professor at Stanford University.  He is also a director of Kintera, Inc. (NASDAQ:BLKB).
  • Naomi O. Seligman: She has been a member of the board of directors since 2005.  She is also a member of the board of directors of Akamai Technologies (NASDAQ:AKAM).
  • Bruce R. Chizen: He has been a member of the board of directors since 2008.  He previously worked as Chief Executive Officer of Adobe Systems Incorporated (NASDAQ:ADBE).  He is also a member of the board of directors of Synopsys, Inc.(NASDAQ:SNPS).
  • Steve Au Yeung: He is Executive Vice President, Oracle Asia Pacific.
  • Keith Block: He is Executive Vice President, Oracle North America.
  • Mary Ann Davidson: She is Chief Security Officer.
  • Takao Endo: He is Representative Executive Officer, President, and CEO, Oracle Japan.
  • Jeff Epstein: He is Executive Vice President and Chief Financial Officer.
  • John Fowler: He is Executive Vice President.
  • Loïc le Guisquet: He is Executive Vice President, Oracle Europe, Middle East and Africa.
  • Douglas Kehring: He is Senior Vice President, Corporate Development and Strategic Planning.
  • Thomas Kurian: He is Executive Vice President, Product Development.
  • Luiz Meisler: He is Executive Vice President, Oracle Latin America.
  • Joanne Olsen: She is Senior Vice President, Cloud Services.
  • Cindy Reese: She is a Senior Vice President.
  • Edward Screven: He is the Chief Corporate Architect.
  • Robert Shrimp: He is Group Vice President, Product Marketing.
  • Judith Sim: She is the Chief Marketing Officer.
  • Robert K. Weiler: He is Executive Vice President, Global Business Units.
  • Derek Williams: He is an Executive Vice President.

Competitors to Oracle include Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM), SAP (NYSE:SAP) and Hewlett-Packard (NYSE:HPQ).

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