Open Text (NASDAQ:OTEX) Shares Gap Up After Earnings Beat

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $29.53, but opened at $30.83. Open Text shares last traded at $28.58, with a volume of 505,948 shares changing hands.

The software maker reported $1.02 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.10. Open Text had a net margin of 8.35% and a return on equity of 24.34%.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. UBS Group assumed coverage on shares of Open Text in a report on Tuesday, December 17th. They issued a “neutral” rating and a $32.00 price target on the stock. Scotiabank dropped their target price on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research note on Friday, November 1st. Royal Bank of Canada cut Open Text from an “outperform” rating to a “sector perform” rating and decreased their price target for the company from $45.00 to $33.00 in a research note on Friday, November 1st. StockNews.com lowered Open Text from a “strong-buy” rating to a “buy” rating in a research note on Monday, January 27th. Finally, BMO Capital Markets lowered their target price on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a research note on Friday, November 1st. Nine equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $35.27.

Hedge Funds Weigh In On Open Text

Several large investors have recently made changes to their positions in the company. Amundi increased its holdings in Open Text by 15.3% in the fourth quarter. Amundi now owns 526,409 shares of the software maker’s stock valued at $14,671,000 after buying an additional 69,686 shares in the last quarter. Scheer Rowlett & Associates Investment Management Ltd. increased its stake in shares of Open Text by 34.1% in the 4th quarter. Scheer Rowlett & Associates Investment Management Ltd. now owns 264,108 shares of the software maker’s stock valued at $7,465,000 after purchasing an additional 67,209 shares in the last quarter. Andra AP fonden raised its holdings in Open Text by 386.5% in the 4th quarter. Andra AP fonden now owns 267,600 shares of the software maker’s stock worth $7,578,000 after purchasing an additional 212,600 shares during the period. Raymond James Financial Inc. acquired a new position in Open Text in the 4th quarter worth about $3,572,000. Finally, Charles Schwab Investment Management Inc. boosted its position in Open Text by 0.8% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 677,709 shares of the software maker’s stock worth $19,170,000 after purchasing an additional 5,177 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors and hedge funds.

Open Text Stock Performance

The company has a debt-to-equity ratio of 1.54, a current ratio of 0.79 and a quick ratio of 0.79. The company has a market capitalization of $7.50 billion, a price-to-earnings ratio of 16.44 and a beta of 1.12. The firm has a fifty day simple moving average of $28.92 and a 200 day simple moving average of $30.65.

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.