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

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) saw unusually-high trading volume on Tuesday . Approximately 4,311,220 shares were traded 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.

Wall Street Analysts Forecast Growth

A number of analysts have commented on OTEX shares. Royal Bank of Canada reduced their price objective on Open Text from $33.00 to $31.00 and set a “sector perform” rating for the company in a research report on Friday, February 7th. Barclays raised their target price on Open Text from $34.00 to $36.00 and gave the stock an “equal weight” rating in a research report on Friday, February 7th. TD Securities dropped their price objective 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. Citigroup raised their price objective on shares of Open Text from $30.00 to $32.00 and gave the stock a “neutral” rating in a report on Friday, February 7th. Finally, UBS Group started coverage on shares of Open Text in a research report on Tuesday, December 17th. They issued a “neutral” rating and a $32.00 price target for the company. Nine analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, Open Text currently has a consensus rating of “Hold” and a consensus target price of $35.18.

Open Text Trading Up 0.5 %

The company has a market cap of $6.76 billion, a price-to-earnings ratio of 10.40 and a beta of 1.12. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 1.50. The company’s fifty day moving average price is $28.14 and its two-hundred day moving average price is $30.28.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings results on Thursday, February 6th. The software maker reported $1.02 earnings per share for the quarter, beating analysts’ consensus estimates of $0.92 by $0.10. Open Text had a return on equity of 23.23% and a net margin of 12.21%. Research analysts expect that Open Text Co. will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

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

Institutional Investors Weigh In On Open Text

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. IFP Advisors Inc grew its stake in shares of Open Text by 103.8% during the fourth 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 during the last quarter. Blue Trust Inc. boosted its position 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 buying an additional 398 shares during the last quarter. Aquatic Capital Management LLC acquired a new stake in shares of Open Text in the 4th quarter valued at $60,000. Generali Asset Management SPA SGR acquired a new stake in shares of Open Text in the 4th quarter valued at $62,000. Finally, Allworth Financial LP raised its position in shares of Open Text by 20.7% during the fourth quarter. Allworth Financial LP now owns 2,564 shares of the software maker’s stock worth $73,000 after acquiring an additional 439 shares during the last quarter. 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.