Open Text (NASDAQ:OTEX) Trading Up 10% - Time to Buy?

Key Points

• Open Text Corporation shares surged by 10% during trading on Friday, reaching a last traded price of $30.96, having previously closed at $28.14.
• Multiple brokerages have issued diverse ratings and revised target prices for the stock, with an average target of $32.00 and a general consensus rating of "Hold".
• Recently, institutional investors have increased their stakes in Open Text, with 70.37% of the company's stock now owned by institutional investors and hedge funds.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC's share price was up 10% during mid-day trading on Friday . The stock traded as high as $30.89 and last traded at $30.96. Approximately 1,402,762 shares traded hands during trading, an increase of 14% from the average daily volume of 1,233,916 shares. The stock had previously closed at $28.14.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on OTEX. UBS Group decreased their target price 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. Jefferies Financial Group restated a "buy" rating on shares of Open Text in a research report on Wednesday, July 9th. Scotiabank cut their target price on shares of Open Text from $35.00 to $30.00 and set a "sector perform" rating on the stock in a report on Monday, April 28th. National Bankshares decreased 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 research note on Friday, April 25th. Finally, BMO Capital Markets dropped their price objective on shares of Open Text from $30.00 to $28.00 and set a "market perform" rating on the stock in a research note on Friday, May 2nd. One analyst has rated the stock with a sell rating, six have issued a hold rating and four have given a buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $32.00.

Open Text Trading Up 9.8%

The company has a market capitalization of $7.88 billion, a PE ratio of 12.62 and a beta of 1.12. 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 business's 50-day simple moving average is $28.90 and its two-hundred day simple moving average is $27.59.

Hedge Funds Weigh In On Open Text

Several hedge funds and other institutional investors have recently modified their holdings of OTEX. LPL Financial LLC grew its holdings in Open Text by 8.7% during the fourth quarter. LPL Financial LLC now owns 18,509 shares of the software maker's stock worth $524,000 after acquiring an additional 1,479 shares during the period. Wellington Management Group LLP lifted its holdings in shares of Open Text by 31.4% during the fourth quarter. Wellington Management Group LLP now owns 263,239 shares of the software maker's stock valued at $7,446,000 after purchasing an additional 62,934 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Open Text by 25.1% in the fourth quarter. Geode Capital Management LLC now owns 1,748,435 shares of the software maker's stock worth $49,604,000 after buying an additional 350,582 shares during the period. Massachusetts Financial Services Co. MA grew its holdings in shares of Open Text by 92.0% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 12,837 shares of the software maker's stock valued at $364,000 after buying an additional 6,152 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its position in Open Text by 4.6% during the fourth quarter. Russell Investments Group Ltd. now owns 351,382 shares of the software maker's stock valued at $9,943,000 after buying an additional 15,357 shares during the period. 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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