Oracle announced Saturday that co-founder and Executive Chair Larry Ellison has canceled a plan to sell as many as 50 million shares of the company's stock, a move that would have been worth about $7.5 billion based on Friday's closing price. No shares were sold under the trading plan, which was adopted on June 22 and set to expire on October 24.
Oracle stated that Ellison has no other plans to sell his Oracle stock. The technology giant did not provide a reason for the cancellation of the trading plan.
Oracle shares have experienced a significant decline this year, largely due to investor concerns about the company's escalating capital expenditures, which have pressured its free cash flow. The stock is down nearly 23% year-to-date and was more than 18% below its closing price on June 18, the last trading day before Ellison's trading plan was put in place.
Earlier in the week, Oracle reported quarterly results that surpassed Wall Street expectations. The company also disclosed a smaller cash burn than anticipated, which temporarily eased some concerns regarding its debt-fueled spending. This news led to a jump in the company's stock on Friday, though the shares later reversed course.
Analysts indicated that a sustained recovery in Oracle's cash flow is still some time away. The firm also announced that restructuring costs, including job cuts, are expected to increase by approximately $700 million.
Ellison, 82, is Oracle's largest shareholder, owning over 38% of the company. He previously served as Oracle's CEO until 2014.