Open Text (NASDAQ:OTEX) Stock Price Down 4.9% - Here's What Happened

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC shares dropped 4.9% during trading on Wednesday . The company traded as low as $28.96 and last traded at $28.70. Approximately 574,992 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 945,294 shares. The stock had previously closed at $30.19.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Citigroup raised their price objective on Open Text from $29.00 to $43.00 and gave the company a "negative" rating in a research report on Friday, May 2nd. National Bankshares reduced their price objective on Open Text from $38.00 to $34.00 and set a "sector perform" rating for the company in a research report on Friday, April 25th. CIBC reduced their price objective on Open Text from $33.00 to $31.00 and set a "neutral" rating for the company in a research report on Friday, May 2nd. UBS Group reduced their price objective on Open Text from $32.00 to $28.00 and set a "neutral" rating for the company in a research report on Friday, May 2nd. Finally, Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a report on Tuesday, May 13th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and three have assigned a buy rating to the stock. According to MarketBeat, Open Text has an average rating of "Hold" and an average target price of $32.30.

Open Text Price Performance

The company has a market capitalization of $7.19 billion, a P/E ratio of 11.44 and a beta of 1.13. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 1.54. The firm has a fifty day moving average of $28.38 and a 200 day moving average of $27.45.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its earnings results on Wednesday, April 30th. The software maker reported $0.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.01. The business had revenue of $1.25 billion for the quarter, compared to analysts' expectations of $1.28 billion. Open Text had a return on equity of 22.49% and a net margin of 12.55%. The business's revenue for the quarter was down 13.3% on a year-over-year basis. During the same period last year, the firm posted $0.94 earnings per share. On average, equities research analysts anticipate that Open Text Corporation will post 3.45 EPS for the current year.

Open Text Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 20th. Stockholders of record on Friday, June 6th were given a dividend of $0.2625 per share. The ex-dividend date was Friday, June 6th. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.75%. Open Text's payout ratio is currently 42.86%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Versant Capital Management Inc purchased a new position in shares of Open Text during the 1st quarter valued at about $26,000. Parallel Advisors LLC lifted its position in shares of Open Text by 219.3% during the 1st quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock valued at $49,000 after buying an additional 1,331 shares in the last quarter. Aquatic Capital Management LLC purchased a new position in shares of Open Text during the 4th quarter valued at about $60,000. Generali Asset Management SPA SGR purchased a new position in shares of Open Text during the 4th quarter valued at about $62,000. Finally, Headlands Technologies LLC lifted its position in shares of Open Text by 360.6% during the 1st quarter. Headlands Technologies LLC now owns 2,888 shares of the software maker's stock valued at $73,000 after buying an additional 2,261 shares in the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

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.