Is Oracle Corporation (ORCL) A Smart Long-Term Buy?

·2 min read

First Eagle Investment Management, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A net return of -1.93% was delivered by its Global Fund for the third quarter of 2021. The Global Fund underperformed the MSCI World Index in the period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

First Eagle Investment Management, in its Q3 2021 investor letter, mentioned Oracle Corporation (NASDAQ: ORCL) and discussed its stance on the firm. Oracle Corporation is an Austin, Texas-based computer software company with a $255.8 billion market capitalization. ORCL delivered a 44.66% return since the beginning of the year, while its 12-month returns are up by 63.00%. The stock closed at $93.58 per share on November 25, 2021.

Here is what First Eagle Investment Management has to say about Oracle Corporation in its Q3 2021 investor letter:

"Leading contributors in the First Eagle Global Fund this quarter included Oracle Corporation. Oracle continues to make progress reinventing itself for the cloud-computing environment. Impressively, it has affected this turnaround primarily through organic research & development and smaller, well-priced acquisitions rather than expensive, headline-grabbing mergers. Results in recent quarters have suggested Oracle’s subscription-based model is gaining traction, and we believe the company will be a strong competitor in the huge addressable public cloud market. With a high level of insider ownership and a strong balance sheet, Oracle has been a strong cash flow generator and has historically returned excess cash to shareholders in the form of dividends and share buybacks."

Oracle ORCL
Oracle ORCL

Ken Wolter/

Based on our calculations, Oracle Corporation (NASDAQ: ORCL) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. ORCL was in 56 hedge fund portfolios at the end of the third quarter of 2021, compared to 55 funds in the previous quarter. Oracle Corporation (NASDAQ: ORCL) delivered a 5.60% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.