Open Text (NASDAQ:OTEX) Stock Price Down 7.1% – Time to Sell?

Open Text Co. (NASDAQ:OTEX) (TSE:OTC)’s share price fell 7.1% on Thursday . The company traded as low as $31.26 and last traded at $31.38. 61,042 shares were traded during mid-day trading, a decline of 90% from the average session volume of 625,868 shares. The stock had previously closed at $33.78.

Analyst Ratings Changes

OTEX has been the subject of a number of research analyst reports. CIBC reduced their target price on Open Text from $36.00 to $33.00 and set a “neutral” rating for the company in a report on Friday, July 19th. Citigroup lowered their target price on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a research note on Friday. TD Securities dropped their target price on shares of Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a report on Friday. National Bank Financial downgraded shares of Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. Finally, Royal Bank of Canada downgraded shares of Open Text from an “outperform” rating to a “sector perform” rating and cut their price objective for the company from $45.00 to $33.00 in a report on Friday. Eight research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $35.90.

Open Text Trading Down 3.4 %

The business’s 50-day simple moving average is $32.73 and its two-hundred day simple moving average is $31.58. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.51. The firm has a market capitalization of $7.70 billion, a price-to-earnings ratio of 16.95 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, August 1st. The software maker reported $0.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.93 by $0.05. The company had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.41 billion. Open Text had a return on equity of 25.00% and a net margin of 8.06%. The firm’s quarterly revenue was down 8.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.79 earnings per share. Equities analysts forecast that Open Text Co. will post 3.23 earnings per share for the current year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Shareholders of record on Friday, November 29th will be paid a dividend of $0.262 per share. The ex-dividend date of this dividend is Friday, November 29th. This is a positive change from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 dividend on an annualized basis and a yield of 3.62%. Open Text’s dividend payout ratio is 61.40%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in OTEX. JARISLOWSKY FRASER Ltd lifted its holdings in Open Text by 5.1% during the 2nd quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock worth $471,415,000 after buying an additional 767,822 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Open Text by 1.3% in the first quarter. Vanguard Group Inc. now owns 10,344,910 shares of the software maker’s stock valued at $401,693,000 after purchasing an additional 135,812 shares during the period. The Manufacturers Life Insurance Company grew its stake in Open Text by 25.1% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock worth $167,277,000 after purchasing an additional 1,118,479 shares in the last quarter. Cooke & Bieler LP increased its holdings in Open Text by 18.6% during the 2nd quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock worth $166,325,000 after purchasing an additional 867,978 shares during the period. Finally, National Bank of Canada FI increased its holdings in Open Text by 17.5% during the 2nd quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock worth $120,390,000 after purchasing an additional 599,790 shares during the period. Hedge funds and other institutional investors own 70.37% of the company’s stock.

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.