Open Text (NASDAQ:OTEX) Hits New 1-Year High After Analyst Upgrade

Key Points

• Open Text Corporation (NASDAQ:OTEX) reached a new 52-week high after receiving an upgrade from National Bank Financial, which raised its rating to "outperform" with a price target of $45.00.
• The company recently reported earnings per share (EPS) of $0.97, surpassing analyst expectations, but its revenue decreased by 3.8% from the previous year.
• Open Text announced an increase in its quarterly dividend from $0.26 to $0.275 per share, resulting in an annualized yield of 2.9%.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC's stock price reached a new 52-week high during mid-day trading on Monday after National Bank Financial upgraded the stock from a sector perform rating to an outperform rating. National Bank Financial now has a $45.00 price target on the stock. Open Text traded as high as $37.20 and last traded at $37.50, with a volume of 135413 shares changing hands. The stock had previously closed at $35.68.

A number of other research firms have also recently issued reports on OTEX. Jefferies Financial Group cut Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price for the company. in a research note on Tuesday, August 12th. Scotiabank boosted their target price on Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a research note on Tuesday, August 12th. Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. CIBC reissued a "neutral" rating on shares of Open Text in a research note on Monday, August 11th. Finally, Royal Bank Of Canada boosted their target price on Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a research note on Tuesday, September 2nd. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $34.18.

Institutional Trading of Open Text

Several institutional investors and hedge funds have recently bought and sold shares of OTEX. Versant Capital Management Inc acquired a new position in shares of Open Text in the first quarter valued at approximately $26,000. Sagard Holdings Management Inc. acquired a new position in shares of Open Text in the second quarter valued at approximately $30,000. MAI Capital Management grew its position in shares of Open Text by 58.7% in the second quarter. MAI Capital Management now owns 1,595 shares of the software maker's stock valued at $47,000 after purchasing an additional 590 shares during the last quarter. Cromwell Holdings LLC grew its position 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 purchasing an additional 352 shares during the last quarter. Finally, WealthCollab LLC grew its position 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 purchasing an additional 464 shares during the last quarter. Institutional investors own 70.37% of the company's stock.

Open Text Stock Up 5.8%

The firm has a 50-day moving average price of $30.95 and a 200 day moving average price of $28.35. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.80 and a quick ratio of 0.80. The company has a market cap of $9.60 billion, a price-to-earnings ratio of 22.86 and a beta of 1.16.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.86 by $0.11. The business had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.30 billion. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The firm's quarterly revenue was down 3.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.98 earnings per share. Sell-side analysts predict that Open Text Corporation will post 3.45 EPS for the current year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Investors of record on Friday, September 5th will be given a dividend of $0.275 per share. This is an increase from Open Text's previous quarterly dividend of $0.26. This represents a $1.10 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Friday, September 5th. Open Text's dividend payout ratio (DPR) is currently 66.67%.

About Open Text

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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