Open Text (NASDAQ:OTEX) Reaches New 52-Week Low – Should You Sell?

Open Text Co. (NASDAQ:OTEX) (TSE:OTC)’s stock price hit a new 52-week low during trading on Friday . The company traded as low as $26.84 and last traded at $26.86, with a volume of 426034 shares changing hands. The stock had previously closed at $27.46.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on OTEX shares. Scotiabank reduced their target price on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research report on Friday, November 1st. Royal Bank of Canada dropped their price objective on shares of Open Text from $33.00 to $31.00 and set a “sector perform” rating for the company in a research note on Friday, February 7th. Citigroup raised their target price on shares of Open Text from $30.00 to $32.00 and gave the stock a “neutral” rating in a research report on Friday, February 7th. UBS Group initiated coverage on shares of Open Text in a research report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 price target for the company. Finally, Barclays increased their price target on shares of Open Text from $34.00 to $36.00 and gave the stock an “equal weight” rating in a research note on Friday, February 7th. Nine equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $35.18.

Open Text Stock Performance

The company has a debt-to-equity ratio of 1.50, a current ratio of 0.87 and a quick ratio of 0.87. The stock has a 50-day moving average price of $28.42 and a 200-day moving average price of $30.46. The firm has a market capitalization of $7.08 billion, a PE ratio of 10.91 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, February 6th. The software maker reported $1.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.10. Open Text had a return on equity of 23.23% and a net margin of 12.21%. On average, research analysts expect that Open Text Co. will post 3.45 EPS for the current fiscal 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 issued a $0.2625 dividend. The ex-dividend date of this dividend is Friday, March 7th. This is a boost from Open Text’s previous quarterly dividend of $0.26. This represents a $1.05 annualized dividend and a yield of 3.91%. Open Text’s dividend payout ratio is currently 42.68%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. JARISLOWSKY FRASER Ltd raised its stake in shares of Open Text by 11.8% in the 4th quarter. JARISLOWSKY FRASER Ltd now owns 18,547,256 shares of the software maker’s stock valued at $522,879,000 after purchasing an additional 1,957,695 shares in the last quarter. First Trust Advisors LP increased its holdings in Open Text by 9.5% in the fourth quarter. First Trust Advisors LP now owns 7,275,908 shares of the software maker’s stock valued at $205,925,000 after buying an additional 632,437 shares during the last quarter. Cooke & Bieler LP raised its stake in Open Text by 6.6% during the fourth quarter. Cooke & Bieler LP now owns 6,308,967 shares of the software maker’s stock valued at $178,670,000 after buying an additional 389,220 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its stake in Open Text by 75.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 5,994,675 shares of the software maker’s stock valued at $169,555,000 after buying an additional 2,586,549 shares in the last quarter. Finally, The Manufacturers Life Insurance Company lifted its holdings in Open Text by 1.1% during the 3rd quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker’s stock worth $187,952,000 after buying an additional 63,620 shares during the last quarter. 70.37% of the stock is owned by institutional investors and hedge funds.

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.