Open Text (TSE:OTEX) Stock Crosses Above 50 Day Moving Average - Here's Why

Key Points

• Open Text Co. shares surpassed their 50-day moving average, reaching a high of C$48.87 during trading, closing at C$48.71.
• The company reported earnings of C$0.97 per share for the last quarter, exceeding expectations by C$0.14 and has a projected EPS of approximately C$4.90 for the current fiscal year.
• Open Text increased its quarterly dividend to $0.275, reflecting an annualized yield of 2.3%, up from the previous $0.17 per share dividend.

Shares of Open Text Co. (TSE:OTEX - Get Free Report) NASDAQ: OTEX passed above its 50 day moving average during trading on Wednesday . The stock has a 50 day moving average of C$42.27 and traded as high as C$48.87. Open Text shares last traded at C$48.71, with a volume of 2,196,169 shares.

Open Text Price Performance

The company has a quick ratio of 1.34, a current ratio of 0.87 and a debt-to-equity ratio of 157.46. The company has a market capitalization of C$12.39 billion, a P/E ratio of 29.52, a P/E/G ratio of 1.35 and a beta of 0.87. The company's 50-day simple moving average is C$42.27 and its 200 day simple moving average is C$39.18.

Open Text (TSE:OTEX - Get Free Report) NASDAQ: OTEX last posted its earnings results on Thursday, August 7th. The company reported C$0.97 EPS for the quarter, topping the consensus estimate 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 period in the prior year, the business earned $0.98 earnings per share. As a group, sell-side analysts expect that Open Text Co. will post 4.9036649 earnings per share for the current fiscal year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, September 5th will be given a $0.275 dividend. This represents a $1.10 annualized dividend and a yield of 2.3%. This is an increase from Open Text's previous quarterly dividend of $0.17. Open Text's 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.

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