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

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

Wall Street Analysts Forecast Growth

OTEX has been the subject of a number of research analyst reports. TD Securities dropped their price objective on shares of Open Text from $38.00 to $35.00 and set a “buy” rating for the company in a report on Sunday, February 9th. Citigroup lifted their price objective on shares of Open Text from $30.00 to $32.00 and gave the stock a “neutral” rating in a report on Friday, February 7th. Barclays lifted their price objective on shares of Open Text from $34.00 to $36.00 and gave the stock an “equal weight” rating in a report on Friday, February 7th. Royal Bank of Canada decreased their target price on shares of Open Text from $33.00 to $31.00 and set a “sector perform” rating on the stock in a research report on Friday, February 7th. Finally, UBS Group started coverage on shares of Open Text in a research report on Tuesday, December 17th. They issued a “neutral” rating and a $32.00 target price on the stock. Nine equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, Open Text has an average rating of “Hold” and a consensus target price of $35.18.

Open Text Trading Up 3.8 %

The stock has a market capitalization of $6.88 billion, a P/E ratio of 10.59 and a beta of 1.17. The firm’s 50 day moving average price is $27.74 and its 200 day moving average price is $29.95. The company has a debt-to-equity ratio of 1.50, a current ratio of 0.87 and a quick ratio of 0.87.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued 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, equities research analysts expect that Open Text Co. will post 3.45 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 21st. Investors of record on Friday, March 7th will be paid a $0.2625 dividend. This is an increase from Open Text’s previous quarterly dividend of $0.26. This represents a $1.05 dividend on an annualized basis and a yield of 4.03%. The ex-dividend date of this dividend is Friday, March 7th. Open Text’s dividend payout ratio is presently 42.68%.

Hedge Funds Weigh In On Open Text

A number of institutional investors have recently bought and sold shares of the stock. Public Employees Retirement System of Ohio raised its stake in Open Text by 208.2% in the fourth quarter. Public Employees Retirement System of Ohio now owns 140,726 shares of the software maker’s stock worth $3,985,000 after buying an additional 95,058 shares in the last quarter. Squarepoint Ops LLC bought a new position in Open Text in the fourth quarter worth about $372,000. Twinbeech Capital LP bought a new position in Open Text in the fourth quarter worth about $360,000. Two Sigma Investments LP raised its stake in Open Text by 483.2% in the fourth quarter. Two Sigma Investments LP now owns 72,906 shares of the software maker’s stock worth $2,065,000 after buying an additional 60,406 shares in the last quarter. Finally, Tidal Investments LLC raised its stake in Open Text by 38.8% in the fourth quarter. Tidal Investments LLC now owns 18,238 shares of the software maker’s stock worth $516,000 after buying an additional 5,100 shares in the last quarter. 70.37% of the stock is 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.