Short Interest in Open Text Co. (NASDAQ:OTEX) Drops By 16.9%

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) was the target of a large decrease in short interest in June. As of June 15th, there was short interest totalling 4,120,000 shares, a decrease of 16.9% from the May 31st total of 4,960,000 shares. Based on an average daily volume of 760,100 shares, the days-to-cover ratio is currently 5.4 days. Currently, 1.5% of the company’s stock are sold short.

Open Text Stock Performance

Open Text stock traded up $0.27 during mid-day trading on Tuesday, hitting $30.35. 154,455 shares of the company’s stock traded hands, compared to its average volume of 673,969. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 2.01. Open Text has a one year low of $27.54 and a one year high of $45.47. The firm has a 50 day moving average price of $30.58 and a 200 day moving average price of $36.53. The company has a market cap of $8.19 billion, a PE ratio of 48.52 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, May 2nd. The software maker reported $0.84 earnings per share for the quarter, beating analysts’ consensus estimates of $0.81 by $0.03. The business had revenue of $1.45 billion for the quarter, compared to analysts’ expectations of $1.43 billion. Open Text had a net margin of 2.85% and a return on equity of 24.45%. On average, equities analysts forecast that Open Text will post 3.79 EPS for the current year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 18th. Stockholders of record on Friday, May 31st were paid a $0.435 dividend. This is a positive change from Open Text’s previous quarterly dividend of $0.25. This represents a $1.74 dividend on an annualized basis and a dividend yield of 5.73%. The ex-dividend date of this dividend was Friday, May 31st. Open Text’s dividend payout ratio is currently 159.68%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in OTEX. Boston Partners raised its stake in shares of Open Text by 0.5% in the 4th quarter. Boston Partners now owns 60,137 shares of the software maker’s stock worth $2,527,000 after buying an additional 318 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in Open Text by 18.0% in the 4th quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock valued at $92,000 after acquiring an additional 334 shares during the last quarter. Chase Investment Counsel Corp boosted its position in shares of Open Text by 6.9% during the 1st quarter. Chase Investment Counsel Corp now owns 8,232 shares of the software maker’s stock valued at $319,000 after purchasing an additional 528 shares in the last quarter. Optiver Holding B.V. acquired a new position in shares of Open Text in the 4th quarter worth approximately $27,000. Finally, First Affirmative Financial Network raised its holdings in shares of Open Text by 9.1% in the 4th quarter. First Affirmative Financial Network now owns 8,044 shares of the software maker’s stock worth $338,000 after purchasing an additional 674 shares in the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

Analysts Set New Price Targets

OTEX has been the topic of several research reports. Raymond James cut their price objective on Open Text from $55.00 to $48.00 and set an “outperform” rating on the stock in a research note on Friday, May 3rd. CIBC lowered their target price on shares of Open Text from $38.50 to $36.00 and set a “neutral” rating for the company in a research note on Friday, June 21st. TD Securities reduced their price target on shares of Open Text from $54.00 to $40.00 and set a “buy” rating on the stock in a research report on Friday, May 3rd. Scotiabank reaffirmed a “sector perform” rating on shares of Open Text in a research report on Friday, May 3rd. Finally, BMO Capital Markets cut shares of Open Text from an “outperform” rating to a “market perform” rating and cut their target price for the stock from $50.00 to $38.00 in a report on Friday, May 3rd. Six investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $41.50.

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.