Open Text (NASDAQ:OTEX) Hits New 12-Month High - Still a Buy?

Key Points

• Open Text Corporation's stock reached a new 52-week high at $34.28 during trading, with recent trading closing at $34.12 and a volume of 248,325 shares.
• The company reported earnings of $0.97 per share for the last quarter, surpassing analysts' expectations of $0.86, along with a revenue of $1.32 billion, exceeding the projected $1.30 billion.
• Open Text has recently increased its quarterly dividend to $0.275 per share, signaling a strong commitment to shareholders, with an annualized dividend yield of 3.2%.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC's share price reached a new 52-week high during trading on Tuesday . The stock traded as high as $34.28 and last traded at $34.12, with a volume of 248325 shares trading hands. The stock had previously closed at $33.79.

Analyst Ratings Changes

Several equities analysts have commented on OTEX shares. Wall Street Zen upgraded Open Text from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Scotiabank increased their target price on Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a research report on Tuesday, August 12th. Jefferies Financial Group downgraded Open Text from a "buy" rating to a "hold" rating and set a $33.00 price objective for the company. in a research report on Tuesday, August 12th. CIBC restated a "neutral" rating on shares of Open Text in a research report on Monday, August 11th. Finally, Royal Bank Of Canada raised their price objective on Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a research report on Tuesday, September 2nd. Two equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Open Text has a consensus rating of "Hold" and an average target price of $33.10.

Open Text Stock Up 1.2%

The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.61. The stock has a 50 day simple moving average of $30.95 and a 200 day simple moving average of $28.33. The stock has a market cap of $9.07 billion, a price-to-earnings ratio of 21.62 and a beta of 1.16.

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

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, September 5th will be paid a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a yield of 3.1%. This is a boost from Open Text's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, September 5th. Open Text's payout ratio is 66.67%.

Institutional Investors Weigh In On Open Text

A number of hedge funds have recently added to or reduced their stakes in OTEX. Versant Capital Management Inc acquired a new stake in Open Text in the first quarter valued at approximately $26,000. Sagard Holdings Management Inc. purchased a new position in shares of Open Text during the second quarter valued at approximately $30,000. MAI Capital Management boosted its position in shares of Open Text by 58.7% during the second quarter. MAI Capital Management now owns 1,595 shares of the software maker's stock valued at $47,000 after buying an additional 590 shares during the last quarter. Cromwell Holdings LLC boosted its position in shares of Open Text by 27.4% during the second quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker's stock valued at $48,000 after buying an additional 352 shares during the last quarter. Finally, WealthCollab LLC boosted its position in shares of Open Text by 39.5% during 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. 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.