Open Text (NASDAQ:OTEX) Sees Unusually-High Trading Volume - Still a Buy?

Open Text Co. (NASDAQ:OTEX - Get Free Report) TSE: OTC saw unusually-strong trading volume on Thursday . Approximately 10,186,565 shares were traded during trading, an increase of 1,031% from the previous session's volume of 901,042 shares.The stock last traded at $28.78 and had previously closed at $28.46.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Citigroup lifted their price objective on Open Text from $29.00 to $43.00 and gave the company a "negative" rating in a research note on Friday, May 2nd. BMO Capital Markets lowered their price target on shares of Open Text from $30.00 to $28.00 and set a "market perform" rating for the company in a report on Friday, May 2nd. Royal Bank of Canada lowered their price target on shares of Open Text from $31.00 to $30.00 and set a "sector perform" rating for the company in a report on Tuesday, April 22nd. Barclays lowered their price target on shares of Open Text from $36.00 to $29.00 and set an "equal weight" rating for the company in a report on Monday, April 21st. Finally, National Bankshares lowered their price target on shares of Open Text from $38.00 to $34.00 and set a "sector perform" rating for the company in a report on Friday, April 25th. One research analyst has rated the stock with a sell rating, eight have given a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $32.30.

Open Text Stock Performance

The firm's fifty day moving average price is $26.67 and its 200-day moving average price is $27.57. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.50. The firm has a market cap of $7.22 billion, a price-to-earnings ratio of 11.34 and a beta of 1.13.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings results on Wednesday, April 30th. The software maker reported $0.82 earnings per share for the quarter, topping analysts' consensus estimates of $0.81 by $0.01. The firm had revenue of $1.25 billion during the quarter, compared to analysts' expectations of $1.28 billion. Open Text had a net margin of 12.21% and a return on equity of 23.23%. Open Text's quarterly revenue was down 13.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.94 EPS. Analysts expect that Open Text Co. will post 3.45 earnings per share for the current year.

Open Text Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 20th. Investors of record on Friday, June 6th will be paid a dividend of $0.2625 per share. This represents a $1.05 dividend on an annualized basis and a yield of 3.76%. The ex-dividend date of this dividend is Friday, June 6th. Open Text's dividend payout ratio is currently 42.86%.

Institutional Trading of Open Text

A number of large investors have recently bought and sold shares of the business. Plato Investment Management Ltd boosted its stake in Open Text by 926.0% during the 1st quarter. Plato Investment Management Ltd now owns 49,999 shares of the software maker's stock worth $1,276,000 after purchasing an additional 45,126 shares during the period. United Services Automobile Association acquired a new stake in shares of Open Text in the 1st quarter worth $213,000. Guardian Partners Inc. lifted its stake in shares of Open Text by 9.5% in the 1st quarter. Guardian Partners Inc. now owns 203,426 shares of the software maker's stock worth $5,083,000 after acquiring an additional 17,654 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Open Text by 75.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker's stock worth $36,307,000 after acquiring an additional 619,527 shares during the period. Finally, Advisors Asset Management Inc. lifted its stake in shares of Open Text by 75.2% in the 1st quarter. Advisors Asset Management Inc. now owns 10,719 shares of the software maker's stock worth $271,000 after acquiring an additional 4,601 shares during the period. Institutional investors and hedge funds own 70.37% of the company's stock.

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.