Open Text (NASDAQ:OTEX) Sets New 12-Month High - What's Next?

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 hit a new 52-week high during trading on Tuesday . The company traded as high as $34.28 and last traded at $34.12, with a volume of 248325 shares. The stock had previously closed at $33.79.

Wall Street Analyst Weigh In

OTEX has been the subject of a number of research reports. CIBC restated a "neutral" rating on shares of Open Text in a research report on Monday, August 11th. Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Royal Bank Of Canada raised their price objective 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. Jefferies Financial Group downgraded Open Text from a "buy" rating to a "hold" rating and set a $33.00 price objective on the stock. in a research note on Tuesday, August 12th. Finally, Barclays reissued a "positive" rating on shares of Open Text in a research note on Friday, August 8th. Two equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Open Text presently has a consensus rating of "Hold" and a consensus price target of $33.10.

Open Text Trading Up 1.0%

The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.80 and a current ratio of 0.80. The company has a 50-day simple moving average of $30.53 and a 200 day simple moving average of $28.11. The company has a market capitalization of $8.68 billion, a P/E ratio of 20.67 and a beta of 1.15.

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

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, September 5th will be given a dividend of $0.275 per share. This is a boost from Open Text's previous quarterly dividend of $0.26. This represents a $1.10 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Friday, September 5th. Open Text's dividend payout ratio (DPR) is presently 66.67%.

Institutional Trading of Open Text

Several institutional investors have recently bought and sold shares of OTEX. Norges Bank acquired a new stake in Open Text in the 2nd quarter valued at $98,882,000. Brandes Investment Partners LP boosted its stake in Open Text by 42.7% in the 2nd quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker's stock valued at $244,356,000 after buying an additional 2,506,058 shares in the last quarter. Value Partners Investments Inc. boosted its stake in Open Text by 1,162.1% in the 1st quarter. Value Partners Investments Inc. now owns 2,333,539 shares of the software maker's stock valued at $58,955,000 after buying an additional 2,148,639 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in Open Text by 11.7% in the second quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker's stock worth $225,898,000 after purchasing an additional 810,352 shares in the last quarter. Finally, Letko Brosseau & Associates Inc. boosted its stake in Open Text by 16.2% in the second quarter. Letko Brosseau & Associates Inc. now owns 5,649,818 shares of the software maker's stock worth $164,754,000 after purchasing an additional 789,013 shares in the last quarter. 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.

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