PineStone Asset Management Inc. disclosed the sale of 161,430 Oracle Corporation shares for an estimated $41.11 million in the third quarter, according to an SEC filing released on Friday.
What Happened
PineStone Asset Management Inc. reduced its position in Oracle Corporation (ORCL -6.93%) by 161,430 shares during the quarter, according to its Friday SEC filing. The estimated value of the shares sold was $41.1 million, calculated using the average closing price for the quarter. After the trade, PineStone’s Oracle stake stood at 3.4 million shares, worth $964.5 million at quarter-end.
What Else to Know
PineStone’s sale brings its Oracle position to 6% of reportable U.S. equity assets.
Top holdings after the filing:
- NYSE:TSM: $1.8 billion (11.4% of AUM)
- NASDAQ:GOOGL: $1.6 billion (9.7% of AUM)
- NASDAQ:MSFT: $1.5 billion (9.37% of AUM)
- NYSE:AZO: $1.1 billion (7.1% of AUM)
- NYSE:MCO: $1.1 billion (6.7% of AUM)
As of Friday's close, Oracle shares were priced at $291.31, up 68% over the past year and outpacing the S&P 500's nearly 14% gain during the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close on Friday) | $291.31 |
| Market Capitalization | $830.5 billion |
| Revenue (TTM) | $59 billion |
| Net Income (TTM) | $12.4 billion |
Company Snapshot
- Oracle offers a comprehensive suite of cloud software applications, infrastructure technologies, database management systems, and hardware products—including Oracle Cloud and Fusion applications.
- The company generates revenue primarily through cloud services subscriptions, software licensing, hardware sales, and related support and consulting services.
- It serves enterprise customers across diverse industries, including businesses, government agencies, and educational institutions worldwide.
Oracle Corporation operates globally in enterprise software and cloud infrastructure, operating at scale with over $59.02 billion in TTM revenue. The company leverages its broad product portfolio and deep integration of cloud and database technologies to deliver mission-critical solutions for large organizations.
Foolish Take
Montreal-based PineStone Asset Management trimmed its Oracle (NYSE: ORCL) position last quarter, selling about $41 million worth of shares while keeping a substantial $964 million stake. The reduction appears consistent with PineStone’s broader portfolio activity, which included scaling back large technology positions such as Moody’s and AutoZone, likely to rebalance after a period of outperformance across top holdings.
Oracle’s stock has surged 68% in the past year, outpacing the S&P 500’s 14% gain, though shares slid on Friday after the company’s recent Investor Day. The company projected $225 billion in annual revenue and $21 in EPS by the end of the decade, driven by its expanding cloud infrastructure business and partnerships such as its multibillion-dollar deal with OpenAI. Analysts from Guggenheim and T.D. Cowen raised their price targets following the event, underscoring optimism despite short-term volatility.
For long-term investors, Oracle’s deep enterprise relationships, accelerating cloud adoption, and growing AI exposure continue to justify its position among PineStone’s largest holdings. The fund’s trim likely reflects prudent profit-taking rather than waning conviction in Oracle’s long-term potential.
Glossary
Asset Management: Professional management of investments on behalf of clients, including individuals and institutions.
Equity Assets Under Management (AUM): The total market value of equity (stock) investments managed by a fund or firm.
Reportable U.S. Equity Assets: U.S. stock holdings that must be disclosed in regulatory filings, typically due to size or regulatory requirements.
Stake: The ownership interest or proportion of shares held in a company by an investor or fund.
Top Holdings: The largest investments in a fund's portfolio, usually ranked by market value.
Quarterly Average Pricing: The average price of a security over a specific quarter, used for valuation or reporting.
Outpacing: Achieving a higher rate of return or growth compared to a benchmark or peer group.
Mission-Critical Solutions: Products or services essential to the core operations and success of an organization.
Cloud Services Subscriptions: Ongoing payments for access to software or infrastructure delivered over the internet.
Hardware Sales: Revenue generated from selling physical technology products, such as servers or storage devices.
TTM: The 12-month period ending with the most recent quarterly report.
