Open Text (NASDAQ:OTEX) Sees Large Volume Increase – Should You Buy?

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) shares saw strong trading volume on Thursday . 5,041,650 shares were traded during trading, an increase of 288% from the previous session’s volume of 1,299,184 shares.The stock last traded at $33.80 and had previously closed at $33.46.

Analyst Upgrades and Downgrades

Several research firms have issued reports on OTEX. Jefferies Financial Group boosted their price objective on shares of Open Text from $33.00 to $35.00 and gave the stock a “hold” rating in a research note on Thursday, November 6th. Barclays boosted their price target on Open Text from $33.00 to $39.00 and gave the stock an “equal weight” rating in a research report on Tuesday, October 21st. Royal Bank Of Canada lifted their price objective on shares of Open Text from $30.00 to $35.00 and gave the company a “sector perform” rating in a research note on Tuesday, September 2nd. National Bankshares set a $45.00 price objective on shares of Open Text and gave the company an “outperform” rating in a research report on Thursday, October 23rd. Finally, Citigroup increased their price target on Open Text from $31.00 to $38.00 and gave the company a “neutral” rating in a report on Thursday, October 30th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $39.42.

Open Text Stock Up 0.7%

The firm has a 50 day moving average of $36.60 and a 200-day moving average of $32.68. The company has a debt-to-equity ratio of 1.60, a current ratio of 0.87 and a quick ratio of 0.87. The stock has a market capitalization of $8.49 billion, a P/E ratio of 17.65 and a beta of 1.08.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings results on Wednesday, November 5th. The software maker reported $1.05 earnings per share for the quarter, topping analysts’ consensus estimates of $1.00 by $0.05. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.27 billion. Open Text had a net margin of 9.60% and a return on equity of 23.44%. The business’s revenue was up 1.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.93 earnings per share. On average, equities research analysts expect that Open Text Corporation will post 3.45 earnings per share for the current fiscal year.

Open Text Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 19th. Investors of record on Friday, December 5th will be given a $0.275 dividend. This represents a $1.10 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Friday, December 5th. Open Text’s dividend payout ratio is 57.59%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Cromwell Holdings LLC raised its stake in shares of Open Text by 27.4% in the second quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker’s stock valued at $48,000 after acquiring an additional 352 shares during the last quarter. Oppenheimer Asset Management Inc. increased its stake in shares of Open Text by 2.9% in the second quarter. Oppenheimer Asset Management Inc. now owns 13,174 shares of the software maker’s stock valued at $385,000 after buying an additional 370 shares in the last quarter. Tidal Investments LLC raised its holdings in shares of Open Text by 2.6% in the second quarter. Tidal Investments LLC now owns 18,059 shares of the software maker’s stock valued at $527,000 after buying an additional 460 shares during the last quarter. WealthCollab LLC raised its holdings in shares of Open Text by 39.5% in the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock valued at $48,000 after buying an additional 464 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in Open Text by 39.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock worth $59,000 after buying an additional 570 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.