Open Text (NASDAQ:OTEX) Reaches New 52-Week Low – What’s Next?

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) shares reached a new 52-week low during trading on Tuesday . The company traded as low as $21.82 and last traded at $22.1360, with a volume of 629952 shares traded. The stock had previously closed at $23.03.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on OTEX. Citigroup cut their price objective on Open Text from $36.00 to $26.00 and set a “neutral” rating for the company in a report on Friday, February 6th. UBS Group set a $26.00 price target on shares of Open Text in a research report on Friday, February 6th. Royal Bank Of Canada cut their price target on shares of Open Text from $33.00 to $30.00 and set a “sector perform” rating for the company in a report on Friday, February 6th. Raymond James Financial lowered their price objective on shares of Open Text from $48.00 to $42.00 and set an “outperform” rating on the stock in a research note on Friday, February 6th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Open Text in a report on Monday, December 29th. Three analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Open Text has an average rating of “Hold” and an average price target of $35.75.

Open Text Stock Up 0.8%

The company has a market capitalization of $5.46 billion, a price-to-earnings ratio of 13.09 and a beta of 1.08. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.57. The business has a 50-day moving average price of $25.17 and a 200-day moving average price of $31.84.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings results on Thursday, February 5th. The software maker reported $1.13 earnings per share for the quarter, beating analysts’ consensus estimates of $1.04 by $0.09. The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.29 billion. Open Text had a return on equity of 23.60% and a net margin of 8.42%.Open Text’s revenue for the quarter was down .6% on a year-over-year basis. During the same quarter last year, the company posted $1.11 EPS. As a group, equities analysts anticipate that Open Text Corporation will post 3.45 earnings per share for the current fiscal year.

Open Text Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Friday, March 6th were given a $0.275 dividend. This represents a $1.10 annualized dividend and a dividend yield of 4.9%. The ex-dividend date of this dividend was Friday, March 6th. Open Text’s dividend payout ratio (DPR) is 64.71%.

Institutional Investors Weigh In On Open Text

Hedge funds have recently made changes to their positions in the company. Norges Bank purchased a new stake in Open Text in the 2nd quarter worth about $98,882,000. Brandes Investment Partners LP increased its holdings in shares of Open Text by 42.7% in the 2nd quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker’s stock valued at $244,356,000 after purchasing an additional 2,506,058 shares during the period. First Trust Advisors LP increased its holdings in shares of Open Text by 27.3% in the 4th quarter. First Trust Advisors LP now owns 11,493,714 shares of the software maker’s stock valued at $374,394,000 after purchasing an additional 2,466,264 shares during the period. Connor Clark & Lunn Investment Management Ltd. lifted its position in shares of Open Text by 456.0% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 2,312,755 shares of the software maker’s stock worth $86,429,000 after purchasing an additional 1,896,755 shares in the last quarter. Finally, Morgan Stanley boosted its holdings in shares of Open Text by 76.8% during the fourth quarter. Morgan Stanley now owns 2,884,381 shares of the software maker’s stock worth $93,973,000 after purchasing an additional 1,253,405 shares during the period. Hedge funds and other institutional investors 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.