Open Text (NASDAQ:OTEX) Sets New 52-Week Low - Time to Sell?

Shares of Open Text Co. (NASDAQ:OTEX - Get Free Report) TSE: OTC reached a new 52-week low on Friday . The company traded as low as $26.96 and last traded at $27.12, with a volume of 84125 shares trading hands. The stock had previously closed at $27.87.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Scotiabank cut their price target on shares of Open Text from $40.00 to $35.00 and set a "sector perform" rating on the stock in a report on Friday, November 1st. Royal Bank of Canada cut shares of Open Text from an "outperform" rating to a "sector perform" rating and cut their price target for the stock from $45.00 to $33.00 in a report on Friday, November 1st. StockNews.com upgraded shares of Open Text from a "buy" rating to a "strong-buy" rating in a report on Friday, January 3rd. BMO Capital Markets dropped their target price on shares of Open Text from $33.00 to $32.00 and set a "market perform" rating on the stock in a report on Friday, November 1st. Finally, UBS Group assumed coverage on shares of Open Text in a report on Tuesday, December 17th. They set a "neutral" rating and a $32.00 target price on the stock. Nine research analysts have rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $35.55.

Open Text Trading Down 1.3 %

The firm has a market capitalization of $7.27 billion, a PE ratio of 15.90 and a beta of 1.12. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.54. The company's 50-day simple moving average is $29.20 and its 200 day simple moving average is $30.93.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 EPS for the quarter, beating the consensus estimate of $0.80 by $0.13. The firm had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.28 billion. Open Text had a net margin of 8.35% and a return on equity of 24.34%. Open Text's revenue was down 11.0% on a year-over-year basis. During the same period last year, the firm posted $0.90 EPS. As a group, sell-side analysts expect that Open Text Co. will post 3.37 EPS for the current year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 20th. Investors of record on Friday, November 29th were given a $0.262 dividend. This is a positive change from Open Text's previous quarterly dividend of $0.19. This represents a $1.05 annualized dividend and a dividend yield of 3.81%. The ex-dividend date was Friday, November 29th. Open Text's dividend payout ratio (DPR) is presently 60.69%.

Hedge Funds Weigh In On Open Text

A number of institutional investors have recently bought and sold shares of OTEX. United Services Automobile Association purchased a new position in Open Text during the 2nd quarter worth approximately $302,000. Andra AP fonden purchased a new position in Open Text during the 2nd quarter worth approximately $1,601,000. American Century Companies Inc. raised its position in Open Text by 13.6% during the 2nd quarter. American Century Companies Inc. now owns 92,871 shares of the software maker's stock worth $2,789,000 after buying an additional 11,127 shares during the last quarter. Thornburg Investment Management Inc. raised its position in Open Text by 200.0% during the 2nd quarter. Thornburg Investment Management Inc. now owns 128,100 shares of the software maker's stock worth $3,848,000 after buying an additional 85,400 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in Open Text by 6.1% during the 2nd quarter. Dimensional Fund Advisors LP now owns 787,619 shares of the software maker's stock worth $23,660,000 after buying an additional 45,380 shares during the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

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.