Open Text (NASDAQ:OTEX) Sees Large Volume Increase – Time to Buy?

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) shares saw unusually-high trading volume on Wednesday . Approximately 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.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the stock. Jefferies Financial Group dropped their price target on shares of Open Text from $42.00 to $35.00 and set a “buy” rating on the stock in a research note on Friday, August 2nd. Citigroup cut their target price on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a research note on Friday, November 1st. Barclays decreased 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 research note on Friday, November 1st. National Bankshares lowered Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price target on the stock. in a research note on Friday, August 2nd. Finally, BMO Capital Markets dropped their price target on Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a research report on Friday, November 1st. Eight research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat, Open Text currently has an average rating of “Hold” and a consensus price target of $35.90.

Open Text Stock Performance

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 fifty day moving average price of $31.74 and a 200 day moving average price of $31.01. The firm has a market cap of $8.13 billion, a PE ratio of 17.68 and a beta of 1.13.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share 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%. Open Text’s revenue was down 11.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.90 EPS. As a group, equities research analysts expect that Open Text Co. will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

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

Hedge Funds Weigh In On Open Text

A number of hedge funds have recently modified their holdings of the business. Assenagon Asset Management S.A. lifted its stake in Open Text by 1.7% during the third quarter. Assenagon Asset Management S.A. now owns 18,872 shares of the software maker’s stock worth $629,000 after purchasing an additional 322 shares in the last quarter. BNP Paribas Financial Markets boosted its holdings in 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 acquiring an additional 351 shares during the period. Cromwell Holdings LLC grew its position in Open Text by 29.6% in the 3rd quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock valued at $55,000 after acquiring an additional 380 shares in the last quarter. Blue Trust Inc. increased its stake in Open Text by 435.7% during the third quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock worth $32,000 after purchasing an additional 793 shares during the period. Finally, Vanguard Personalized Indexing Management LLC boosted its stake in shares of Open Text by 5.3% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 17,436 shares of the software maker’s stock valued at $524,000 after purchasing an additional 874 shares during the period. 70.37% of the stock is currently owned by hedge funds and other 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.