Open Text (NASDAQ:OTEX) Sets New 52-Week High on 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 share price reached a new 52-week high on Monday after National Bankshares upgraded the stock from a sector perform rating to an outperform rating. National Bankshares now has a $45.00 price target on the stock, up from their previous price target of $34.00. Open Text traded as high as $37.20 and last traded at $37.50, with a volume of 135413 shares. The stock had previously closed at $35.68.

Several other analysts also recently commented on the stock. Jefferies Financial Group downgraded shares of Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price on the stock. in a report on Tuesday, August 12th. Scotiabank 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 report on Tuesday, August 12th. CIBC reiterated a "neutral" rating on shares of Open Text in a report on Monday, August 11th. National Bank Financial upgraded shares of Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 price objective on the stock in a report on Monday. Finally, Barclays reiterated a "positive" rating on shares of Open Text in a report on Friday, August 8th. Four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Open Text currently has a consensus rating of "Hold" and a consensus price target of $35.18.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in OTEX. Northern Trust Corp lifted its holdings in shares of Open Text by 31.4% in the fourth quarter. Northern Trust Corp now owns 151,281 shares of the software maker's stock worth $4,284,000 after acquiring an additional 36,123 shares during the last quarter. BNP Paribas Financial Markets grew its position in shares of Open Text by 154.5% during the 4th quarter. BNP Paribas Financial Markets now owns 28,233 shares of the software maker's stock worth $800,000 after buying an additional 17,140 shares during the period. Tidal Investments LLC grew its position in shares of Open Text by 38.8% during the 4th quarter. Tidal Investments LLC now owns 18,238 shares of the software maker's stock worth $516,000 after buying an additional 5,100 shares during the period. Two Sigma Investments LP grew its position in shares of Open Text by 483.2% during the 4th quarter. Two Sigma Investments LP now owns 72,906 shares of the software maker's stock worth $2,065,000 after buying an additional 60,406 shares during the period. Finally, Twinbeech Capital LP acquired a new stake in shares of Open Text during the 4th quarter worth approximately $360,000. Institutional investors own 70.37% of the company's stock.

Open Text Trading Down 1.2%

The firm's 50-day moving average price is $31.55 and its 200 day moving average price is $28.63. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.61. The company has a market cap of $9.35 billion, a price-to-earnings ratio of 22.40 and a beta of 1.16.

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

Open Text Increases Dividend

The firm 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 $0.275 dividend. This represents a $1.10 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Friday, September 5th. This is an increase from Open Text's previous quarterly dividend of $0.26. Open Text's payout ratio is 66.67%.

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.