Open Text (NASDAQ:OTEX) Trading Down 9.2% – Here’s What Happened

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) shares traded down 9.2% on Wednesday . The stock traded as low as $23.73 and last traded at $23.6550. 1,377,483 shares traded hands during trading, a decline of 34% from the average session volume of 2,075,177 shares. The stock had previously closed at $26.06.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on OTEX shares. TD Securities raised Open Text to a “hold” rating in a research note on Monday, February 2nd. Raymond James Financial cut their target price on shares of Open Text from $48.00 to $42.00 and set an “outperform” rating for the company in a research report on Friday, February 6th. National Bankshares set a $45.00 target price on Open Text and gave the company an “outperform” rating in a research report on Thursday, October 23rd. Weiss Ratings reissued a “hold (c+)” rating on shares of Open Text in a research note on Monday, December 29th. Finally, Royal Bank Of Canada cut their target price on Open Text from $33.00 to $30.00 and set a “sector perform” rating for the company in a research report on Friday, February 6th. Four analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $36.46.

Open Text Stock Performance

The company has a market capitalization of $6.11 billion, a PE ratio of 14.27 and a beta of 1.08. The firm’s 50-day simple moving average is $30.79 and its 200-day simple moving average is $33.41. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.57.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, February 5th. The software maker reported $1.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.09. The business had revenue of $1.32 billion for the quarter, compared to analysts’ expectations of $1.29 billion. Open Text had a return on equity of 23.60% and a net margin of 8.42%.The business’s revenue for the quarter was down .6% on a year-over-year basis. During the same quarter last year, the firm earned $1.11 EPS. On average, research analysts predict that Open Text Corporation will post 3.45 earnings per share for the current year.

Open Text Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be given a dividend of $0.275 per share. The ex-dividend date is Friday, March 6th. This represents a $1.10 dividend on an annualized basis and a yield of 4.5%. Open Text’s payout ratio is currently 64.71%.

Institutional Investors Weigh In On Open Text

Hedge funds and other institutional investors have recently made changes to their positions in the company. Oppenheimer Asset Management Inc. increased its stake in shares of Open Text by 2.9% in the 2nd quarter. Oppenheimer Asset Management Inc. now owns 13,174 shares of the software maker’s stock valued at $385,000 after purchasing an additional 370 shares in the last quarter. Tidal Investments LLC raised its holdings in Open Text by 2.6% in the 2nd quarter. Tidal Investments LLC now owns 18,059 shares of the software maker’s stock valued at $527,000 after acquiring an additional 460 shares during the last quarter. WealthCollab LLC boosted its stake in Open Text by 39.5% during the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock worth $48,000 after buying an additional 464 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Open Text by 39.7% in the second quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock valued at $59,000 after purchasing an additional 570 shares during the period. Finally, MAI Capital Management grew its stake in shares of Open Text by 58.7% in the 2nd quarter. MAI Capital Management now owns 1,595 shares of the software maker’s stock valued at $47,000 after buying an additional 590 shares during the period. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Company Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.