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

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) shares saw strong trading volume on Tuesday . 4,311,220 shares changed hands during trading, an increase of 441% from the previous session’s volume of 796,823 shares.The stock last traded at $25.51 and had previously closed at $25.47.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on OTEX shares. TD Securities dropped their price target on shares of Open Text from $38.00 to $35.00 and set a “buy” rating for the company in a research note on Sunday, February 9th. StockNews.com cut shares of Open Text from a “strong-buy” rating to a “buy” rating in a research report on Monday, January 27th. Royal Bank of Canada reduced their price target on Open Text from $33.00 to $31.00 and set a “sector perform” rating on the stock in a research report on Friday, February 7th. Citigroup upped their price objective on Open Text from $30.00 to $32.00 and gave the company a “neutral” rating in a report on Friday, February 7th. Finally, UBS Group began coverage on Open Text in a report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 target price on the stock. Nine research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $35.18.

Open Text Stock Performance

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 stock has a 50-day moving average price of $28.14 and a 200 day moving average price of $30.28. The company has a market cap of $6.76 billion, a price-to-earnings ratio of 10.40 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, February 6th. The software maker reported $1.02 EPS for the quarter, topping the consensus estimate of $0.92 by $0.10. Open Text had a net margin of 12.21% and a return on equity of 23.23%. As a group, analysts anticipate that Open Text Co. will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 21st. Investors of record on Friday, March 7th will be paid a $0.2625 dividend. The ex-dividend date of this dividend is Friday, March 7th. This is a positive change from Open Text’s previous quarterly dividend of $0.26. This represents a $1.05 dividend on an annualized basis and a yield of 4.10%. Open Text’s dividend payout ratio is presently 42.68%.

Institutional Trading of Open Text

Hedge funds and other institutional investors have recently modified their holdings of the company. The Manufacturers Life Insurance Company raised its position in Open Text by 1.1% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker’s stock valued at $187,952,000 after buying an additional 63,620 shares during the last quarter. Natixis Advisors LLC acquired a new position in Open Text during the 3rd quarter worth approximately $1,467,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp raised its holdings in shares of Open Text by 126.1% in the third quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 86,260 shares of the software maker’s stock valued at $2,871,000 after purchasing an additional 48,111 shares during the last quarter. Stifel Financial Corp acquired a new stake in shares of Open Text in the third quarter valued at approximately $2,232,000. Finally, Access Investment Management LLC bought a new stake in shares of Open Text in the third quarter worth $6,509,000. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Company Profile

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.