Open Text (NASDAQ:OTEX) Sees Strong Trading Volume – Still a Buy?

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) saw an uptick in trading volume on Thursday . 10,186,565 shares were traded during mid-day trading, an increase of 1,031% from the previous session’s volume of 901,042 shares.The stock last traded at $28.78 and had previously closed at $28.46.

Analysts Set New Price Targets

A number of research firms recently issued reports on OTEX. Citigroup lifted their target price on Open Text from $29.00 to $43.00 and gave the company a “negative” rating in a report on Friday, May 2nd. BMO Capital Markets decreased their target price on Open Text from $30.00 to $28.00 and set a “market perform” rating for the company in a report on Friday, May 2nd. 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 report on Friday, May 2nd. Wall Street Zen upgraded Open Text from a “hold” rating to a “buy” rating in a research note on Tuesday, May 13th. Finally, TD Securities cut their price target on Open Text from $38.00 to $35.00 and set a “buy” rating on the stock in a research note on Sunday, February 9th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, Open Text has an average rating of “Hold” and a consensus target price of $32.30.

Open Text Price Performance

The stock has a 50-day moving average price of $26.67 and a 200 day moving average price of $27.59. The company has a debt-to-equity ratio of 1.50, a current ratio of 0.87 and a quick ratio of 0.87. The firm has a market cap of $7.22 billion, a price-to-earnings ratio of 11.34 and a beta of 1.13.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its earnings results on Wednesday, April 30th. The software maker reported $0.82 EPS for the quarter, topping analysts’ consensus estimates of $0.81 by $0.01. Open Text had a return on equity of 23.23% and a net margin of 12.21%. The business had revenue of $1.25 billion for the quarter, compared to analysts’ expectations of $1.28 billion. During the same quarter in the previous year, the firm earned $0.94 earnings per share. The business’s revenue was down 13.3% compared to the same quarter last year. As a group, equities research analysts forecast that Open Text Co. will post 3.45 earnings per share for the current fiscal year.

Open Text Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 20th. Investors of record on Friday, June 6th will be paid a dividend of $0.2625 per share. This represents a $1.05 dividend on an annualized basis and a yield of 3.76%. The ex-dividend date of this dividend is Friday, June 6th. Open Text’s dividend payout ratio is currently 42.86%.

Institutional Trading of Open Text

A number of large investors have recently bought and sold shares of the business. Blue Trust Inc. boosted its holdings in Open Text by 40.8% in the 4th quarter. Blue Trust Inc. now owns 1,373 shares of the software maker’s stock valued at $39,000 after purchasing an additional 398 shares in the last quarter. Allworth Financial LP boosted its holdings in Open Text by 20.7% in the 4th quarter. Allworth Financial LP now owns 2,564 shares of the software maker’s stock valued at $73,000 after purchasing an additional 439 shares in the last quarter. IFP Advisors Inc boosted its holdings in Open Text by 103.8% in the 4th quarter. IFP Advisors Inc now owns 1,011 shares of the software maker’s stock valued at $29,000 after purchasing an additional 515 shares in the last quarter. Vident Advisory LLC boosted its holdings in Open Text by 6.6% in the 1st quarter. Vident Advisory LLC now owns 11,681 shares of the software maker’s stock valued at $295,000 after purchasing an additional 722 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in Open Text by 1.5% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 65,637 shares of the software maker’s stock valued at $1,857,000 after purchasing an additional 947 shares in the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

About Open Text

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.