Shares of This Business Software Company Were Just Sold By Insiders

Following are key Oracle Corp. (NASDAQ:ORCL) personnel who have recently recorded insider transactions:

  • Hector Garcia-Molina, who is a Director, exercised 12,486 options at a cost of $12.85 per option and subsequently sold 6,243 shares at a market price of $32.89, for net proceeds of $4,8444.  He presently holds 5,000 Oracle shares, out of 5.05 billion shares outstanding.
  • Jon F. Fowler, who is Executive Vice President, Systems, sold 8,568 shares at a market price of $31.36 for proceeds of $268,692.  He presently holds 18,539 Oracle shares, out of 5.05 billion shares outstanding.
  • Luiz Meisler, Executive Vice President–Latin America Division, exercised 437,500 options at prices ranging from $12.34 to $14.57, and subsequently sold 437,500 shares at market prices ranging from $32.03 to $32.5, for net proceeds of $8,174,375.  He presently holds 7,253 Oracle shares, out of 5.05 billion shares outstanding.
  • Thomas Kurian, Executive Vice President–Product Development, exercised 851,747 options at a cost of $20.69 per option, and subsequently sold 851,747 shares at a market price of $32.29, for net proceeds of $9,878,178.  He presently holds 29,812 Oracle shares, out of 5.05 billion shares.

The Oracle (NASDAQ:ORCL) insiders listed here seem to have very little financial stake in the company, often exercising options and immediately selling an equivalent number of shares, in order to extract cash from the company.  Though Oracle’s stock has performed well as of late, the high rate at which its insiders sell shares doesn’t exactly inspire confidence in the company’s prospects.  Oracle’s stock has risen 33% over the past year, from a low of $21.24 to a recent high of $33.71.

Institutional investors own 60.98% of the outstanding shares, mutual funds own 1.13% and Larry Ellison owns approximately 20%.

The following table details institutional ownership in Oracle stock.

Institutional Ownership of Oracle Corp. Shares

Institution/Fund Name ORCL Shares held Change in number of ORCL shares % Change in number of ORCL shares $ Change in value of ORCL shares % of outstanding ORCL stock this stake represents % of the institution’s portfolio that their ORCL stake represents RPT DATE
Capital Research Global Investors 232,864,368 -21,905,724 -8.6 448,077,760 4.6 2.9 12/31/10
American Funds Growth Fund of America 151,672,576 -35,376,800 -18.9 -274,924,128 3 3.3 12/31/10
Vanguard Group, Inc. 145,754,112 -800,670 -0.5 627,107,776 2.9 0.8 12/31/10
State Street Global Advisors (NYSE:STT) 140,828,240 5,729,166 4.2 780,513,792 2.8 0.8 12/31/10
BlackRock Institutional Trust Company, N.A. (NYSE:BLK) 131,839,216 4,863,112 3.8 717,259,072 2.6 0.7 12/31/10
Capital World Investors 128,482,128 -67,271,920 -34.4 -1,234,505,600 2.5 1.4 12/31/10
Fidelity Management & Research 112,556,744 16,813,356 17.6 952,316,096 2.2 0.7 12/31/10
Wellington Management Company, LLP 88,732,872 -8,166,520 -8.4 175,590,208 1.8 1 12/31/10
MFS Investment Management 71,531,040 146,581 0.2 322,248,800 1.4 2.5 12/31/10
Janus Capital Management LLC 68,043,176 -5,505,201 -7.5 154,977,488 1.3 3.5 12/31/10
PRIMECAP Management Company 56,477,592 -756,474 -1.3 231,013,952 1.1 2.6 12/31/10
American Funds Investment Company of America 55,165,100 -10,795,000 -16.4 -44,361,056 1.1 3.1 12/31/10
Grantham, Mayo, Van Otterloo & Co., L.L.C. 52,711,792 -5,698,700 -9.8 81,557,376 1 5.6 12/31/10
Vanguard Total Stock Market Index Fund 42,417,288 -890,958 -2.1 164,834,704 0.8 0.8 12/31/10
Jennison Associates LLC 37,557,152 4,913,166 15.1 299,047,840 0.7 1.6 12/31/10
AllianceBernstein L.P. 37,422,936 10,369,008 38.3 444,939,936 0.7 0.9 12/31/10
Marsico Capital Management, L.L.C. 37,181,192 21,389,322 135.4 739,759,616 0.7 3.2 12/31/10
TIAA-CREF 36,878,272 3,822,884 11.6 266,752,752 0.7 0.9 12/31/10
Vanguard PRIMECAP Fund 35,930,800 0 0 159,892,064 0.7 3.5 12/31/10
Vanguard 500 Index Fund 34,659,880 -535,288 -1.5 139,863,984 0.7 1.1 12/31/10
Statens Pensjonsfond Utland 32,212,468 7,314,773 29.4 348,735,712 0.6 0.3 12/31/09
GMO Quality Fund 30,996,900 -4,071,400 -11.6 72,574,472 0.6 6 11/30/10
SPDR S&P 500 ETF (NYSE:SPY) 30,431,768 1,937,671 6.8 219,931,104 0.6 1.1 12/31/10
Fidelity Contrafund 30,230,400 1,436,400 5 173,092,624 0.6 1.3 12/31/10
Vanguard Institutional Index Fund 29,784,284 1,359,415 4.8 169,040,368 0.6 1 12/31/10
American Funds Insurance Series Growth-Income Fund 25,417,500 -4,000,000 -13.6 5,707,875 0.5 3.5 12/31/10
PowerShares QQQ Trust – Series 1 24,131,624 -230,162 -0.9 -1,353,525 0.5 2.9 11/30/10
American Funds American Balanced Fund 21,285,992 -2,550,400 -10.7 26,244,420 0.4 2 12/31/10
CREF Stock Account 18,344,620 -1,025,962 -5.3 76,860,360 0.4 0.5 9/30/10
Hartford Capital Appreciation Fund 18,083,000 0 0 80,469,352 0.4 2.8 12/31/10

Institutional ownership of Oracle Corp. (NASDAQ:ORCL) Shares, sorted by the number of shares held, from highest to lowest.

The net change in shares held by the institutions over the reporting period was -89,486,325 shares.  However, because of the increasing trend in the stock price over the same period, the net change in the dollar value of the institutions’ holding was $6,323,265,194.  The largest change in holdings came from Capital World Investors, which sold off a huge stake of 67,271,920 shares, which reduced the value of their stake by $1,234,505,600.

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