Open Text (NASDAQ:OTEX) Sees Large Volume Increase – Here’s What Happened

by · The Markets Daily

Open Text Co. (NASDAQ:OTEX – Get Free Report) (TSE:OTC) saw an uptick in trading volume on Wednesday . 1,685,400 shares were traded during trading, an increase of 160% from the previous session’s volume of 648,444 shares.The stock last traded at $30.34 and had previously closed at $30.02.

Analysts Set New Price Targets

A number of research firms have commented on OTEX. National Bank Financial cut Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. Royal Bank of Canada cut shares of Open Text from an “outperform” rating to a “sector perform” rating and lowered their target price for the stock from $45.00 to $33.00 in a research note on Friday, November 1st. TD Securities cut their price target on shares of Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a research note on Friday, November 1st. BMO Capital Markets dropped their price objective on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a report on Friday, November 1st. Finally, Scotiabank lowered their price target on Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research report on Friday, November 1st. Eight analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $35.90.

View Our Latest Stock Analysis on Open Text

Open Text Trading Up 1.9 %

The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. The firm has a market cap of $8.13 billion, a PE ratio of 17.35 and a beta of 1.13. The company has a 50-day simple moving average of $31.81 and a 200 day simple moving average of $31.02.

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

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Shareholders of record on Friday, November 29th will be given a dividend of $0.262 per share. The ex-dividend date is Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a yield of 3.43%. This is an increase from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio is currently 60.69%.

Institutional Trading of Open Text

Institutional investors and hedge funds have recently made changes to their positions in the business. Ridgewood Investments LLC acquired a new stake in Open Text in the 2nd quarter valued at $30,000. Blue Trust Inc. grew its position in shares of 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 purchasing an additional 793 shares during the period. Kimelman & Baird LLC purchased a new stake in shares of Open Text during the second quarter worth about $36,000. Cromwell Holdings LLC raised its position in shares of Open Text by 29.6% during the 3rd quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock worth $55,000 after purchasing an additional 380 shares during the last quarter. Finally, Essex LLC purchased a new position in Open Text in the 3rd quarter valued at about $210,000. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

About Open Text

(Get Free Report)

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.

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