Open Text (TSE:OTEX) Hits New 1-Year High - Should You Buy?

Key Points

• Open Text's share price reached a new 52-week high of C$47.76 during trading, reflecting strong market performance with a volume of 885,775 shares exchanged.
• The company recently increased its quarterly dividend to $0.275 per share, up from $0.17, offering investors a yield of 2.3%.
• Open Text reported better-than-expected earnings with an EPS of C$0.97, surpassing analysts’ consensus estimate of C$0.83.

Shares of Open Text Co. (TSE:OTEX - Get Free Report) NASDAQ: OTEX hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as C$47.76 and last traded at C$47.60, with a volume of 885775 shares. The stock had previously closed at C$46.66.

Open Text Price Performance

The company has a debt-to-equity ratio of 157.46, a current ratio of 0.87 and a quick ratio of 1.34. The stock's 50 day simple moving average is C$42.43 and its two-hundred day simple moving average is C$39.25. The stock has a market cap of C$12.55 billion, a price-to-earnings ratio of 29.91, a P/E/G ratio of 1.35 and a beta of 0.87.

Open Text (TSE:OTEX - Get Free Report) NASDAQ: OTEX last posted its quarterly earnings results on Thursday, August 7th. The company reported C$0.97 earnings per share for the quarter, topping analysts' consensus estimates of C$0.83 by C$0.14. Open Text had a net margin of 12.21% and a return on equity of 15.83%. During the same quarter in the prior year, the company earned $0.98 EPS. On average, analysts forecast that Open Text Co. will post 4.9036649 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 dividend of $0.275 per share. This represents a $1.10 annualized dividend and a yield of 2.2%. This is a boost from Open Text's previous quarterly dividend of $0.17. Open Text's dividend payout ratio is currently 63.64%.

Open Text Company Profile

Open Text Corp grew out of a technology project involving the Oxford English Dictionary at Canada's University of Waterloo in the mid-1980s. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, presentations). The company is based in Ontario, Canada.