Larry Ellison won't sell $7.5B worth of Oracle stock
What's the story
Larry Ellison, the Executive Chairman of Oracle Corporation, has canceled his plan to sell 50 million shares of the company's stock. The decision comes after a trading plan was disclosed that would have allowed him to do so for up to $7.5 billion at current prices. "No Oracle stock was sold under that plan, and he has no other plans to sell any of his Oracle stock," the company clarified in a statement on Saturday.
Trading details
Trading plan set to expire on October 24
The trading plan in question was adopted on June 22 and was set to expire on October 24.
Despite beating Wall Street estimates in its latest quarterly results, Oracle's stock has fallen this year amid investor concerns over future capital expenditures.
Analysts warn that a recovery in cash flow remains some way off.
Market reaction
Ellison's stake and leadership history at Oracle
Oracle's shares have plummeted nearly 23% year to date, trading over 18% below their June 18 closing price when Ellison adopted the plan.
The company did not explain why Ellison's trading plan was canceled.
At 82, Ellison is Oracle's largest shareholder with over 38% ownership. He served as CEO until 2014 and has remained Oracle's largest shareholder since its founding in 1977.
Financial outlook
Oracle's restructuring costs expected to rise amid volatile stock performance
Oracle recently announced that its restructuring costs, part of a plan including job cuts, will increase by about $700 million.
This comes as the company navigates a volatile period for its stock.
Despite the challenges, Oracle's shares rose as much as 7.8% on Friday after a $26 billion increase in its revenue backlog eased some concerns about its debt-fueled spending spree.