Open Text (NASDAQ:OTEX) Sees Unusually-High Trading Volume – What’s Next?

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) shares saw an uptick in trading volume on Thursday . 5,041,650 shares traded hands during trading, an increase of 288% from the previous session’s volume of 1,299,184 shares.The stock last traded at $33.80 and had previously closed at $33.46.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. Royal Bank Of Canada upped their price objective on Open Text from $30.00 to $35.00 and gave the stock a “sector perform” rating in a research report on Tuesday, September 2nd. Weiss Ratings reiterated a “hold (c+)” rating on shares of Open Text in a report on Monday. Citigroup upped their price objective on shares of Open Text from $31.00 to $38.00 and gave the company a “neutral” rating in a research note on Thursday, October 30th. TD Cowen reaffirmed a “hold” rating and issued a $40.00 target price on shares of Open Text in a report on Friday, October 3rd. Finally, Wall Street Zen raised shares of Open Text from a “hold” rating to a “buy” rating in a report on Saturday, August 9th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $39.42.

Open Text Stock Up 0.7%

The firm has a 50 day moving average price of $36.60 and a 200-day moving average price of $32.68. The firm has a market cap of $8.49 billion, a price-to-earnings ratio of 17.65 and a beta of 1.08. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.60.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its earnings results on Wednesday, November 5th. The software maker reported $1.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.00 by $0.05. Open Text had a return on equity of 23.44% and a net margin of 9.60%.The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same quarter in the prior year, the company earned $0.93 EPS. Open Text’s revenue was up 1.5% on a year-over-year basis. On average, equities analysts forecast that Open Text Corporation will post 3.45 EPS for the current year.

Open Text Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 19th. Shareholders of record on Friday, December 5th will be paid a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend is Friday, December 5th. Open Text’s dividend payout ratio (DPR) is currently 57.59%.

Institutional Trading of Open Text

A number of hedge funds have recently bought and sold shares of OTEX. CIBC Private Wealth Group LLC purchased a new position in shares of Open Text during the 3rd quarter worth $33,000. Sagard Holdings Management Inc. purchased a new position in shares of Open Text during the 2nd quarter worth about $30,000. MAI Capital Management raised its stake in Open Text by 58.7% during the second quarter. MAI Capital Management now owns 1,595 shares of the software maker’s stock worth $47,000 after purchasing an additional 590 shares during the period. Cromwell Holdings LLC grew its stake in shares of Open Text by 27.4% during the 2nd quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker’s stock valued at $48,000 after buying an additional 352 shares during the period. Finally, WealthCollab LLC increased its holdings in shares of Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock worth $48,000 after buying an additional 464 shares during the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

About Open Text

Open Text Corporation provides information management software and solutions. The company offers content services, which includes content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation.