Open Text (NASDAQ:OTEX) Sets New 12-Month High on Analyst Upgrade

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) hit a new 52-week high on Monday after National Bankshares upgraded the stock from a sector perform rating to an outperform rating. National Bankshares now has a $45.00 price target on the stock, up from their previous price target of $34.00. Open Text traded as high as $37.20 and last traded at $37.50, with a volume of 135413 shares trading hands. The stock had previously closed at $35.68.

A number of other equities research analysts also recently weighed in on the company. National Bank Financial raised Open Text from a “sector perform” rating to an “outperform” rating and set a $45.00 price objective on the stock in a research report on Monday. Wall Street Zen raised Open Text from a “hold” rating to a “buy” rating in a research report on Saturday, August 9th. Jefferies Financial Group downgraded Open Text from a “buy” rating to a “hold” rating and set a $33.00 price target for the company. in a report on Tuesday, August 12th. Scotiabank raised their price target on Open Text from $30.00 to $35.00 and gave the stock a “sector perform” rating in a report on Tuesday, August 12th. Finally, CIBC reissued a “neutral” rating on shares of Open Text in a report on Monday, August 11th. Four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Open Text has a consensus rating of “Hold” and a consensus price target of $35.18.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Versant Capital Management Inc acquired a new position in Open Text in the first quarter valued at approximately $26,000. Sagard Holdings Management Inc. acquired a new position in Open Text in the second quarter valued at approximately $30,000. MAI Capital Management increased its position in shares of Open Text by 58.7% in the second quarter. MAI Capital Management now owns 1,595 shares of the software maker’s stock valued at $47,000 after buying an additional 590 shares in the last quarter. Cromwell Holdings LLC raised its stake in shares of Open Text by 27.4% during the 2nd quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker’s stock worth $48,000 after buying an additional 352 shares during the period. Finally, WealthCollab LLC raised its stake in shares of Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock worth $48,000 after buying an additional 464 shares during the period. 70.37% of the stock is owned by institutional investors and hedge funds.

Open Text Trading Up 5.5%

The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.80 and a current ratio of 0.80. The firm has a market capitalization of $9.58 billion, a price-to-earnings ratio of 22.82 and a beta of 1.15. The company has a 50 day moving average price of $31.10 and a two-hundred day moving average price of $28.43.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.11. The business had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.30 billion. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The business’s quarterly revenue was down 3.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.98 EPS. On average, research analysts forecast that Open Text Corporation will post 3.45 EPS for the current year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, September 5th will be paid a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Friday, September 5th. This is a positive change from Open Text’s previous quarterly dividend of $0.26. Open Text’s dividend payout ratio is currently 66.67%.

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.