Open Text (TSE:OTEX) Stock Passes Above 50-Day Moving Average - Time to Sell?

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.

Open Text Co. (TSE:OTEX - Get Free Report) NASDAQ: OTEX's stock price 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 debt-to-equity ratio of 157.46, a quick ratio of 1.34 and a current ratio of 0.87. The firm has a market capitalization of C$12.84 billion, a P/E ratio of 30.61, a price-to-earnings-growth ratio of 1.35 and a beta of 0.87. The company has a 50-day moving average price of C$42.82 and a 200-day moving average price of C$39.45.

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 (EPS) for the quarter, topping the consensus estimate of C$0.83 by C$0.14. Open Text had a return on equity of 15.83% and a net margin of 12.21%.During the same period last year, the company posted $0.98 EPS. On average, sell-side analysts predict that Open Text Co. will post 4.9036649 earnings per share for the current year.

Open Text Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Investors 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 an increase from Open Text's previous quarterly dividend of $0.17. Open Text's dividend payout ratio (DPR) is presently 63.64%.

About Open Text

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.