Open Text (NASDAQ:OTEX) Reaches New 1-Year Low – What’s Next?

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC)’s share price hit a new 52-week low during trading on Monday . The stock traded as low as $22.40 and last traded at $22.41, with a volume of 534111 shares changing hands. The stock had previously closed at $22.98.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on OTEX. Canadian Imperial Bank of Commerce lowered their target price on shares of Open Text from $40.00 to $37.00 and set a “neutral” rating for the company in a research note on Friday, January 16th. Zacks Research lowered shares of Open Text from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. Royal Bank Of Canada lowered their price objective on shares of 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. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Open Text in a research report on Monday, December 29th. Finally, Citigroup decreased their price target on shares of Open Text from $36.00 to $26.00 and set a “neutral” rating for the company in a research note on Friday, February 6th. Three equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, Open Text presently has an average rating of “Hold” and a consensus target price of $35.75.

Open Text Price Performance

The firm has a market capitalization of $5.62 billion, a PE ratio of 13.21 and a beta of 1.08. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.94 and a current ratio of 0.94. The stock has a fifty day moving average price of $26.77 and a 200-day moving average price of $32.43.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, February 5th. The software maker reported $1.13 earnings per share for the quarter, topping analysts’ consensus estimates of $1.04 by $0.09. Open Text had a return on equity of 23.60% and a net margin of 8.42%.The firm had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.29 billion. During the same period in the prior year, the business posted $1.11 EPS. The firm’s quarterly revenue was down .6% on a year-over-year basis. Sell-side analysts forecast that Open Text Corporation will post 3.45 EPS for the current fiscal year.

Open Text Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be given a $0.275 dividend. The ex-dividend date of this dividend is Friday, March 6th. This represents a $1.10 dividend on an annualized basis and a dividend yield of 4.9%. Open Text’s payout ratio is presently 64.71%.

Institutional Investors Weigh In On Open Text

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. increased its position in shares of Open Text by 75.8% during the first quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker’s stock worth $36,307,000 after purchasing an additional 619,527 shares in the last quarter. United Services Automobile Association acquired a new stake in shares of Open Text in the 1st quarter worth $213,000. Envestnet Asset Management Inc. grew its stake in Open Text by 7.5% during the 2nd quarter. Envestnet Asset Management Inc. now owns 98,200 shares of the software maker’s stock worth $2,867,000 after buying an additional 6,842 shares during the last quarter. Geode Capital Management LLC grew its stake in Open Text by 15.4% during the 2nd quarter. Geode Capital Management LLC now owns 2,390,874 shares of the software maker’s stock worth $71,040,000 after buying an additional 319,064 shares during the last quarter. Finally, Banco Bilbao Vizcaya Argentaria S.A. acquired a new position in Open Text during the 2nd quarter valued at about $3,006,000. 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.