Open Text (NASDAQ:OTEX) Hits New 52-Week Low – Here’s What Happened

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $26.84 and last traded at $26.86, with a volume of 426034 shares. The stock had previously closed at $27.46.

Analysts Set New Price Targets

Several research firms recently issued reports on OTEX. StockNews.com cut shares of Open Text from a “strong-buy” rating to a “buy” rating in a report on Monday, January 27th. BMO Capital Markets cut their price target on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st. Scotiabank cut their price target on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a report on Friday, November 1st. Royal Bank of Canada cut their price target on shares of Open Text from $33.00 to $31.00 and set a “sector perform” rating for the company in a report on Friday, February 7th. Finally, UBS Group assumed coverage on shares of Open Text in a report on Tuesday, December 17th. They issued a “neutral” rating and a $32.00 target price for the company. Nine analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $35.18.

Open Text Stock Performance

The stock’s 50-day moving average is $28.36 and its 200-day moving average is $30.46. The stock has a market cap of $7.08 billion, a price-to-earnings ratio of 10.91 and a beta of 1.12. 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 announced its quarterly earnings results on Thursday, February 6th. The software maker reported $1.02 earnings per share for the quarter, beating analysts’ consensus estimates of $0.92 by $0.10. Open Text had a net margin of 12.21% and a return on equity of 23.23%. Analysts anticipate that Open Text Co. will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 21st. Stockholders of record on Friday, March 7th will be paid a $0.2625 dividend. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.91%. The ex-dividend date is Friday, March 7th. This is an increase from Open Text’s previous quarterly dividend of $0.26. Open Text’s dividend payout ratio (DPR) is currently 42.68%.

Hedge Funds Weigh In On Open Text

A number of institutional investors have recently added to or reduced their stakes in the company. IFP Advisors Inc raised its stake in shares of Open Text by 103.8% in the 4th quarter. IFP Advisors Inc now owns 1,011 shares of the software maker’s stock valued at $29,000 after purchasing an additional 515 shares in the last quarter. Blue Trust Inc. grew its position in Open Text by 435.7% in the 3rd 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 last quarter. 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 worth $55,000 after purchasing an additional 380 shares during the last quarter. Aquatic Capital Management LLC bought a new position in Open Text in the 4th quarter worth about $60,000. Finally, Generali Asset Management SPA SGR bought a new position in shares of Open Text in the fourth quarter valued at approximately $62,000. Institutional investors and hedge funds own 70.37% of the company’s stock.

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.