Open Text (NASDAQ:OTEX) Shares Up 4.5% – What’s Next?

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) shares traded up 4.5% on Tuesday. The stock traded as high as $25.14 and last traded at $25.2680. 134,066 shares were traded during trading, a decline of 93% from the average daily volume of 1,966,871 shares. The stock had previously closed at $24.18.

Analyst Ratings Changes

Several analysts have weighed in on OTEX shares. Scotia lowered their price target on Open Text from $40.00 to $33.00 and set a “sector outperform” rating on the stock in a report on Friday, August 7th. UBS Group upped their price target on shares of Open Text from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. Weiss Ratings restated a “hold (c-)” rating on shares of Open Text in a report on Monday, September 21st. Wall Street Zen raised Open Text from a “hold” rating to a “buy” rating in a research report on Saturday, September 5th. Finally, Raymond James Financial cut shares of Open Text from an “outperform” rating to a “market perform” rating and dropped their target price for the stock from $35.00 to $29.50 in a research report on Thursday, August 6th. Three equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $30.95.

Open Text Stock Up 3.6%

The stock’s 50 day simple moving average is $23.79 and its two-hundred day simple moving average is $23.16. The firm has a market cap of $6.06 billion, a P/E ratio of 9.71 and a beta of 1.01. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.81 and a quick ratio of 0.81.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, August 6th. The software maker reported $1.23 EPS for the quarter, topping the consensus estimate of $1.02 by $0.21. The business had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.29 billion. Open Text had a return on equity of 25.76% and a net margin of 12.26%. The company’s revenue for the quarter was up 2.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.97 earnings per share. As a group, research analysts forecast that Open Text Corporation will post 3.72 earnings per share for the current year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date was Friday, September 4th. This is an increase from Open Text’s previous quarterly dividend of $0.2750. Open Text’s dividend payout ratio (DPR) is presently 43.41%.

Hedge Funds Weigh In On Open Text

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Kimelman & Baird LLC bought a new position in Open Text during the second quarter valued at approximately $27,000. Global Retirement Partners LLC purchased a new position in Open Text during the second quarter valued at $34,000. Caitong International Asset Management Co. Ltd grew its stake in shares of Open Text by 5,096.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker’s stock valued at $52,000 after acquiring an additional 1,580 shares during the period. Allworth Financial LP bought a new position in shares of Open Text during the 2nd quarter valued at approximately $53,000. Finally, PNC Financial Services Group Inc. increased its holdings in Open Text by 23.0% in the 1st quarter. PNC Financial Services Group Inc. now owns 4,117 shares of the software maker’s stock worth $92,000 after acquiring an additional 769 shares in the last quarter. Institutional investors own 70.37% of the company’s stock.

About Open Text

OpenText Corporation (NASDAQ: OTEX) is a Canadian enterprise software company that provides information management solutions for organizations worldwide. Its products help businesses create, capture, manage, secure, exchange and analyze content and data across digital operations.

The company’s portfolio includes enterprise content management, business process management, customer experience management, secure file transfer, cybersecurity, IT operations management, analytics and developer tools.