Open Text (NASDAQ:OTEX) Stock Price Down 9.2% – Here’s Why

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) shares dropped 9.2% during mid-day trading on Wednesday . The company traded as low as $23.73 and last traded at $23.6550. Approximately 1,377,483 shares traded hands during trading, a decline of 34% from the average daily volume of 2,075,177 shares. The stock had previously closed at $26.06.

Analyst Ratings Changes

A number of brokerages recently weighed in on OTEX. UBS Group set a $26.00 target price on shares of Open Text in a research note on Friday, February 6th. Canadian Imperial Bank of Commerce lowered their price objective on shares of Open Text from $40.00 to $37.00 and set a “neutral” rating on the stock in a research report on Friday, January 16th. Royal Bank Of Canada dropped 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 report on Friday, February 6th. Jefferies Financial Group increased their target price on Open Text from $33.00 to $35.00 and gave the company a “hold” rating in a research note on Thursday, November 6th. Finally, National Bank Financial set a $45.00 price target on Open Text and gave the company an “outperform” rating in a research report on Thursday, October 23rd. Three investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $35.75.

Open Text Price Performance

The firm’s 50 day simple moving average is $30.23 and its two-hundred day simple moving average is $33.24. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.94 and a quick ratio of 0.94. The firm has a market capitalization of $6.16 billion, a P/E ratio of 14.46 and a beta of 1.08.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, February 5th. The software maker reported $1.13 earnings per share for the quarter, beating analysts’ consensus estimates of $1.04 by $0.09. The company had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.29 billion. Open Text had a return on equity of 23.60% and a net margin of 8.42%.Open Text’s revenue for the quarter was down .6% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.11 EPS. As a group, analysts predict that Open Text Corporation will post 3.45 earnings per share for the current year.

Open Text Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be issued a $0.275 dividend. The ex-dividend date is Friday, March 6th. This represents a $1.10 annualized dividend and a dividend yield of 4.5%. Open Text’s dividend payout ratio (DPR) is currently 64.71%.

Institutional Investors Weigh In On Open Text

Several institutional investors have recently added to or reduced their stakes in OTEX. Arkadios Wealth Advisors increased its stake in shares of Open Text by 596.6% in the 3rd quarter. Arkadios Wealth Advisors now owns 83,192 shares of the software maker’s stock worth $3,110,000 after acquiring an additional 71,249 shares in the last quarter. JARISLOWSKY FRASER Ltd grew its holdings in Open Text by 0.6% in the third quarter. JARISLOWSKY FRASER Ltd now owns 21,150,154 shares of the software maker’s stock worth $790,736,000 after purchasing an additional 117,436 shares during the period. Intact Investment Management Inc. increased its stake in shares of Open Text by 94.9% during the third quarter. Intact Investment Management Inc. now owns 1,175,680 shares of the software maker’s stock valued at $43,950,000 after purchasing an additional 572,540 shares in the last quarter. Meritage Portfolio Management lifted its holdings in shares of Open Text by 34.4% during the third quarter. Meritage Portfolio Management now owns 131,407 shares of the software maker’s stock valued at $4,912,000 after purchasing an additional 33,667 shares during the last quarter. Finally, Brandes Investment Partners LP boosted its position in shares of Open Text by 42.7% in the 2nd quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker’s stock worth $244,356,000 after purchasing an additional 2,506,058 shares in the last quarter. Hedge funds and other institutional investors own 70.37% of the company’s stock.

About Open Text

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.