Let’s Take a Fresh Look at Open Text Corporation (OTEX)

On Thursday, shares of Open Text Corporation (NASDAQ:OTEX) marked $40.30 per share versus a previous $39.93 closing price. With having a 0.93% gain, an insight into the fundamental values of Open Text Corporation, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. OTEX showed a rise of 23.62% within its YTD performance, with highs and lows between $30.99 – $40.49 during the period of 52 weeks, compared to the simple moving average of 10.42% in the period of the last 200 days.

Macquarie equity researchers changed the status of Open Text Corporation (NASDAQ: OTEX) shares from “Neutral” to a “Underperform” rating in the report published on November 22nd, 2017. Other analysts, including Citigroup, also published their reports on OTEX shares. Citigroup repeated the rating from the previous report, marking OTEX under “Neutral” rating, in the report published on February 16th, 2017. Additionally, OTEX shares got another “Overweight” rating from Barclays, setting a target price of $76 on the company’s shares, according to the report published in January 24th, 2017. On July 28th, 2016, The Benchmark Company Reiterated an Buy rating and increased its price target from $65 to $75. On the other hand, RBC Capital Mkts Reiterated the “Outperform” rating for OTEX shares, as published in the report on June 21st, 2016. The Benchmark Company seems to be going bullish on the price of OTEX shares, based on the price prediction for OTEX, indicating that the shares will jump from $55 to $65, giving the shares “Buy” rating based on their report from April 28th, 2016. Another “Buy” rating came from TD Securities.

Open Text Corporation (OTEX) Analysis

The present dividend yield for OTEX owners is set at 0.02, marking the return investors will get regardless of the company’s performance in the upcoming period.However, in order for the company to be able to pay its dividends, just like it is the case with Open Text Corporation, the company needs to provide a healthy cash flow, currently at the value of 17.54. In addition, the growth of sales from quarter to quarter is recording 4.80%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Open Text Corporation (OTEX) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 7.30% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.40 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while OTEX is currently recording an average of 445.34K in volumes. The volatility of the stock on monthly basis is set at 1.69%, while the weekly volatility levels are marked at 1.48%with 0.20% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $45.46, indicating growth from the present price of $40.30, which can represent yet another valuable research and analysis points that can help you decide whether to invest in OTEX or pass.

What to Look for When Analyzing Open Text Corporation Shares?

Open Text Corporation (OTEX) is based in the Canada and it represents one of the well-known company operating with Technology sector. If you wish to compare OTEX shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 39.59 for Open Text Corporation, while the value 13.66 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 1.02 is supported by the yearly ESP growth of -75.60%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 2.30%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 77.80% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in OTEX Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in OTEX in the recent period. That is how The Caisse de d�p�t et placement now has an increase position in OTEX by 0.00% in the first quarter, owning 15.96 million shares of OTEX stocks, with the value of $613.54 million after the purchase of an additional 0 shares during the last quarter. In the meanwhile, Beutel, Goodman & Co. Ltd. also increased their stake in OTEX shares changed 0.18% in the first quarter, which means that the company now owns 9.88 million shares of company, all valued at $380.01 million after the acquisition of additional 17,298 shares during the last quarter.

Blue Harbour Group LP acquired a new position in Open Text Corporation during the first quarter, with the value of $378.94 million, and Manulife Asset Management Ltd. increased their stake in the company’s shares by 6.12% in the first quarter, now owning 565,259 shares valued at $377.02 million after the acquisition of the additional 9.81 million shares during the last quarter. In the end, RBC Global Asset Management, Inc. increased their position by 5.66% during the first quarter, now owning 8.32 million OTEX shares, now holding the value of $319.75 million in OTEX with the purchase of the additional 445,737 shares during the period of the last quarter. At the present, 77.80% of OTEX shares are in the ownership of institutional investors.

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