Open Text Corporation (NASDAQ: OTEX) stock fell -0.71% on Friday to $27.87 against a previous-day closing price of $28.07. With 1.12 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.7 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $28.53 whereas the lowest price it dropped to was $27.82. The 52-week range on OTEX shows that it touched its highest point at $52.70 and its lowest point at $27.88 during that stretch. With its current market cap of 7.67 billion, OTEX has annualized dividend of $0.97 while the current yield stands at 3.49%. Beta for the stock currently stands at 0.99.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of OTEX was down-trending over the past week, with a drop of -6.10%, but this was down by -25.64% over a month. Three-month performance dropped to -25.64% while six-month performance fell -36.09%. The stock lost -44.58% in the past year, while it has lost -41.30% so far this year. A look at the trailing 12-month EPS for OTEX yields 1.46 with Next year EPS estimates of 3.42. For the next quarter, that number is 0.76. This implies an EPS growth rate of 28.60% for this year and 5.45% for next year. EPS is expected to decline by -1.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -18.30%.
Float and Shares Shorts:
At present, 270.21 million OTEX shares are outstanding with a float of 265.07 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.91 million, which was 1.46% higher than short shares on Jun 14, 2022. In addition to Mr. Mark J. Barrenechea as the firm’s Vice Chairman, CEO & CTO, Ms. Madhu Ranganathan CPA, M.B.A. serves as its Exec. VP & CFO.
Through their ownership of 76.71% of OTEX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.10% of OTEX, in contrast to 21.81% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in OTEX with 5.61% of the stake, Jarislowsky, Fraser Ltd. holds 15,137,823 shares worth 15,137,823. A second-largest stockholder of OTEX, Mackenzie Financial Corp., holds 10,938,179 shares, controlling over 4.05% of the firm’s shares. Harris Associates LP is the third largest shareholder in OTEX, holding 10,896,921 shares or 4.04% stake. With a 2.91% stake in OTEX, the Oakmark International Fund is the largest stakeholder. A total of 7,842,300 shares are owned by the mutual fund manager. The Vanguard Total International Stoc, which owns about 1.30% of OTEX stock, is the second-largest Mutual Fund holder. It holds 3,509,741 shares valued at 110.49 million. Beutel Goodman Canadian Equity Fu holds 1.20% of the stake in OTEX, owning 3,234,170 shares worth 101.81 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OTEX since 9 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With OTEX analysts setting a high price target of $60.00 and a low target of $34.00, the average target price over the next 12 months is $48.94. Based on these targets, OTEX could surge 115.29% to reach the target high and rise by 21.99% to reach the target low. Reaching the average price target will result in a growth of 75.6% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. OTEX will report FY 2023 earnings on 08/03/2023. Analysts have provided yearly estimates in a range of $3.37 being high and $3.22 being low. For OTEX, this leads to a yearly average estimate of $3.28. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Open Text Corporation surprised analysts by $0.03 when it reported $0.80 EPS against a consensus estimate of $0.77. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $0.80 and the low estimate is $0.75. The average estimate for the next quarter is thus $0.77.
Dividends & Yield:
In terms of dividends, OTEX has a current ratio of $0.97, which is $0.97 over the trailing 12-months, while a dividend of $0.68 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and OTEX currently yields $3.25. In the past year, OTEX’s dividend yield has been $3.25, but when looking at the stock over the past five years, its yield has been $1.67. Accordingly, OTEX has a current buyback yield of $3.87. This was $3.87 for the TTM, and it was $0.63 for the past five years.