Open Text (NASDAQ:OTEX) Sets New 1-Year Low – What’s Next?

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) hit a new 52-week low on Wednesday . The company traded as low as $24.91 and last traded at $25.12, with a volume of 458436 shares changing hands. The stock had previously closed at $25.58.

Analysts Set New Price Targets

A number of brokerages have weighed in on OTEX. TD Securities decreased their target price on shares of Open Text from $38.00 to $35.00 and set a “buy” rating for the company in a research note on Sunday, February 9th. Barclays increased their price target on shares of Open Text from $34.00 to $36.00 and gave the company an “equal weight” rating in a report on Friday, February 7th. StockNews.com cut shares of Open Text from a “strong-buy” rating to a “buy” rating in a report on Monday, January 27th. Royal Bank of Canada cut their price target on shares of Open Text from $33.00 to $31.00 and set a “sector perform” rating on the stock in a report on Friday, February 7th. Finally, UBS Group assumed coverage on shares of Open Text in a report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 price target on the stock. Nine investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $35.18.

Open Text Stock Up 3.8 %

The company has a debt-to-equity ratio of 1.50, a current ratio of 0.87 and a quick ratio of 0.87. The firm has a market capitalization of $6.88 billion, a P/E ratio of 10.59 and a beta of 1.17. The company’s 50-day simple moving average is $27.74 and its two-hundred day simple moving average is $29.95.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, February 6th. The software maker reported $1.02 EPS for the quarter, beating the consensus estimate of $0.92 by $0.10. Open Text had a net margin of 12.21% and a return on equity of 23.23%. As a group, research analysts expect that Open Text Co. will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 21st. Stockholders of record on Friday, March 7th will be given a dividend of $0.2625 per share. This represents a $1.05 annualized dividend and a dividend yield of 4.03%. This is an increase from Open Text’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, March 7th. Open Text’s dividend payout ratio (DPR) is presently 42.68%.

Institutional Trading of Open Text

Several institutional investors and hedge funds have recently modified their holdings of the company. BNP Paribas Financial Markets raised its position in shares of Open Text by 3.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 11,093 shares of the software maker’s stock valued at $369,000 after purchasing an additional 351 shares during the period. Blue Trust Inc. increased its holdings in Open Text by 40.8% in the 4th quarter. Blue Trust Inc. now owns 1,373 shares of the software maker’s stock valued at $39,000 after acquiring an additional 398 shares during the last quarter. Allworth Financial LP increased its holdings in Open Text by 20.7% in the 4th quarter. Allworth Financial LP now owns 2,564 shares of the software maker’s stock valued at $73,000 after acquiring an additional 439 shares during the last quarter. IFP Advisors Inc increased its holdings in Open Text by 103.8% in the 4th quarter. IFP Advisors Inc now owns 1,011 shares of the software maker’s stock valued at $29,000 after acquiring an additional 515 shares during the last quarter. Finally, DGS Capital Management LLC increased its holdings in Open Text by 2.0% in the 4th quarter. DGS Capital Management LLC now owns 26,477 shares of the software maker’s stock valued at $750,000 after acquiring an additional 530 shares during the last quarter. 70.37% of the stock is currently owned by institutional investors.

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.