Open Text Co. (NASDAQ:OTEX) Short Interest Down 16.9% in June

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) was the target of a large decline in short interest during the month of June. As of June 15th, there was short interest totalling 4,120,000 shares, a decline of 16.9% from the May 31st total of 4,960,000 shares. Based on an average trading volume of 760,100 shares, the days-to-cover ratio is presently 5.4 days. Currently, 1.5% of the shares of the stock are short sold.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Barclays reduced their price objective on Open Text from $44.00 to $38.00 and set an “equal weight” rating on the stock in a research note on Friday, May 3rd. StockNews.com upgraded Open Text from a “hold” rating to a “buy” rating in a report on Saturday, May 11th. TD Securities dropped their target price on Open Text from $54.00 to $40.00 and set a “buy” rating for the company in a report on Friday, May 3rd. BMO Capital Markets cut Open Text from an “outperform” rating to a “market perform” rating and dropped their target price for the stock from $50.00 to $38.00 in a report on Friday, May 3rd. Finally, Raymond James dropped their target price on Open Text from $55.00 to $48.00 and set an “outperform” rating for the company in a report on Friday, May 3rd. Six equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $41.50.

Hedge Funds Weigh In On Open Text

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Optiver Holding B.V. purchased a new stake in shares of Open Text during the fourth quarter worth about $27,000. Pacifica Partners Inc. purchased a new stake in Open Text in the fourth quarter valued at approximately $32,000. Headlands Technologies LLC purchased a new stake in Open Text in the first quarter valued at approximately $32,000. Assetmark Inc. acquired a new position in Open Text in the fourth quarter valued at approximately $48,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in Open Text by 18.0% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock valued at $92,000 after acquiring an additional 334 shares during the period. Hedge funds and other institutional investors own 70.37% of the company’s stock.

Open Text Stock Up 1.9 %

Shares of OTEX stock traded up $0.56 on Tuesday, hitting $30.64. The stock had a trading volume of 352,771 shares, compared to its average volume of 675,296. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 2.01. The business has a 50 day moving average price of $30.58 and a 200 day moving average price of $36.53. The company has a market cap of $8.27 billion, a PE ratio of 48.52 and a beta of 1.12. Open Text has a one year low of $27.54 and a one year high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its earnings results on Thursday, May 2nd. The software maker reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.81 by $0.03. Open Text had a return on equity of 24.45% and a net margin of 2.85%. The company had revenue of $1.45 billion for the quarter, compared to analyst estimates of $1.43 billion. Research analysts anticipate that Open Text will post 3.79 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 18th. Shareholders of record on Friday, May 31st were paid a $0.435 dividend. This represents a $1.74 annualized dividend and a yield of 5.68%. The ex-dividend date was Friday, May 31st. This is a positive change from Open Text’s previous quarterly dividend of $0.25. Open Text’s payout ratio is 159.68%.

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.