Open Text (NASDAQ:OTEX) Stock Price Down 7.1% – Here’s Why

Open Text Co. (NASDAQ:OTEX) (TSE:OTC)’s stock price dropped 7.1% during trading on Thursday . The company traded as low as $31.26 and last traded at $31.38. Approximately 61,042 shares were traded during mid-day trading, a decline of 90% from the average daily volume of 625,868 shares. The stock had previously closed at $33.78.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on OTEX. TD Securities decreased their price objective on shares of Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a research report on Friday. Citigroup decreased their price target on Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a report on Friday. Royal Bank of Canada downgraded Open Text from an “outperform” rating to a “sector perform” rating and dropped their price objective for the company from $45.00 to $33.00 in a report on Friday. Barclays cut their target price on Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a research report on Friday. Finally, National Bankshares downgraded Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price target for the company. in a report on Friday, August 2nd. Eight investment analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $35.90.

Open Text Price Performance

The firm has a market capitalization of $7.70 billion, a price-to-earnings ratio of 16.95 and a beta of 1.12. The company has a fifty day moving average price of $32.73 and a two-hundred day moving average price of $31.58. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.51.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, August 1st. The software maker reported $0.98 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.05. The business had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.41 billion. Open Text had a net margin of 8.06% and a return on equity of 25.00%. The business’s quarterly revenue was down 8.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.79 earnings per share. On average, equities research analysts expect that Open Text Co. will post 3.23 EPS for the current fiscal year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be issued a dividend of $0.262 per share. The ex-dividend date of this dividend is Friday, November 29th. This is an increase from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 annualized dividend and a dividend yield of 3.62%. Open Text’s dividend payout ratio (DPR) is currently 61.40%.

Institutional Trading of Open Text

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Headlands Technologies LLC acquired a new stake in Open Text in the first quarter valued at about $32,000. Blue Trust Inc. lifted its holdings in Open Text by 435.7% in the third quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock valued at $32,000 after acquiring an additional 793 shares during the period. Ridgewood Investments LLC acquired a new position in shares of Open Text during the 2nd quarter worth $30,000. Kimelman & Baird LLC acquired a new stake in shares of Open Text in the second quarter valued at about $36,000. Finally, Cromwell Holdings LLC boosted its holdings in Open Text by 29.6% during the third quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock worth $55,000 after buying an additional 380 shares in the last quarter. Hedge funds and other institutional investors own 70.37% of the company’s stock.

Open Text Company Profile

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.