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

Key Points

• Open Text hit a new 52-week low, trading as low as $21.82 and last around $22.14 on volume of 629,952 shares, about 4% down and well below its 50‑day ($25.60) and 200‑day ($31.99) moving averages.
• Multiple brokers cut price targets (RBC $33→$30, Citi $36→$26, Raymond James $48→$42), leaving a consensus Hold rating with an average price target of $35.75 (3 Buys, 11 Holds).
• Fundamentals: Open Text beat Q results with $1.13 EPS vs. $1.04 expected and $1.32B revenue (-0.6% YoY); the company has a $5.42B market cap, P/E of 13.01, and pays a quarterly dividend of $0.275 for a 5.0% yield (DPR ~64.7%).

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC's stock price hit a new 52-week low during trading on Tuesday . The stock traded as low as $21.82 and last traded at $22.1360, with a volume of 629952 shares trading hands. The stock had previously closed at $23.03.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on OTEX. Royal Bank Of Canada reduced their price target on Open Text from $33.00 to $30.00 and set a "sector perform" rating on the stock in a report on Friday, February 6th. Citigroup cut their price objective on Open Text from $36.00 to $26.00 and set a "neutral" rating on the stock in a research report on Friday, February 6th. Raymond James Financial decreased their target price on Open Text from $48.00 to $42.00 and set an "outperform" rating for the company in a report on Friday, February 6th. Zacks Research lowered Open Text from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 5th. Finally, TD Securities raised shares of Open Text to a "hold" rating in a research report on Monday, February 2nd. Three analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat.com, Open Text has an average rating of "Hold" and an average price target of $35.75.

Open Text Trading Down 4.0%

The stock has a fifty day simple moving average of $25.60 and a 200 day simple moving average of $31.99. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.94 and a current ratio of 0.94. The firm has a market cap of $5.42 billion, a P/E ratio of 13.01 and a beta of 1.08.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its earnings results on Thursday, February 5th. The software maker reported $1.13 earnings per share for the quarter, beating analysts' consensus estimates of $1.04 by $0.09. Open Text had a net margin of 8.42% and a return on equity of 23.60%. The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same period in the previous year, the business earned $1.11 EPS. The company's quarterly revenue was down .6% compared to the same quarter last year. On average, research analysts expect that Open Text Corporation will post 3.45 earnings per share for the current fiscal year.

Open Text Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Friday, March 6th were given a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 5.0%. The ex-dividend date was Friday, March 6th. Open Text's dividend payout ratio (DPR) is presently 64.71%.

Institutional Trading of Open Text

Several institutional investors and hedge funds have recently added to or reduced their stakes in OTEX. CIBC Private Wealth Group LLC bought a new position in shares of Open Text during the 3rd quarter valued at approximately $33,000. Sagard Holdings Management Inc. purchased a new stake in Open Text during the second quarter valued at $30,000. MAI Capital Management raised its stake in 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 purchasing an additional 590 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in Open Text by 5,096.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker's stock valued at $52,000 after purchasing an additional 1,580 shares during the last quarter. Finally, WealthCollab LLC grew its stake in shares of Open Text by 39.5% in the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock worth $48,000 after buying an additional 464 shares in the last quarter. Institutional investors own 70.37% of the company's stock.

Open Text Company Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company's platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text's product suite includes content services, business process management, customer experience management, analytics and security products.

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