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

Open Text Co. (NASDAQ:OTEX) (TSE:OTC)’s stock price reached a new 52-week low on Friday . The stock traded as low as $26.96 and last traded at $27.12, with a volume of 84125 shares trading hands. The stock had previously closed at $27.87.

Analysts Set New Price Targets

A number of analysts recently issued reports on OTEX shares. Barclays lowered their price target on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a report on Friday, November 1st. TD Securities dropped their target price on Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a research report on Monday, December 30th. BMO Capital Markets reduced their price target on Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st. StockNews.com lowered Open Text from a “strong-buy” rating to a “buy” rating in a report on Saturday. Finally, UBS Group began coverage on Open Text in a research note on Tuesday, December 17th. They set a “neutral” rating and a $32.00 target price for the company. Nine equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $35.55.

Open Text Stock Down 1.3 %

The business’s 50 day simple moving average is $29.17 and its 200 day simple moving average is $30.92. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.79 and a quick ratio of 0.79. The company has a market capitalization of $7.27 billion, a PE ratio of 15.90 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.80 by $0.13. The firm had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.28 billion. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The company’s quarterly revenue was down 11.0% on a year-over-year basis. During the same period last year, the company earned $0.90 EPS. As a group, analysts anticipate that Open Text Co. will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 20th. Investors of record on Friday, November 29th were given a dividend of $0.262 per share. The ex-dividend date of this dividend was Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.81%. This is a boost from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio (DPR) is presently 60.69%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Franklin Resources Inc. grew its stake in shares of Open Text by 19.9% in the third quarter. Franklin Resources Inc. now owns 205,891 shares of the software maker’s stock valued at $7,086,000 after buying an additional 34,135 shares in the last quarter. Wilmington Savings Fund Society FSB purchased a new position in Open Text during the 3rd quarter valued at about $499,000. Toronto Dominion Bank grew its position in Open Text by 169.6% in the 3rd quarter. Toronto Dominion Bank now owns 576,105 shares of the software maker’s stock valued at $19,173,000 after acquiring an additional 362,422 shares in the last quarter. Geode Capital Management LLC increased its stake in Open Text by 4.6% during the third quarter. Geode Capital Management LLC now owns 1,397,853 shares of the software maker’s stock worth $46,460,000 after purchasing an additional 61,696 shares during the period. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Open Text in the third quarter valued at approximately $1,521,000. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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.