Open Text Corp (OTEX) Shares Decline Despite Market Challenges

Open Text Corp (NASDAQ: OTEX) has experienced a decline in its stock price by -11.16 compared to its previous closing price of 33.78. However, the company has seen a fall of -9.93% in its stock price over the last five trading days. zacks.com reported 2024-10-31 that Open Text (OTEX) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $1.01 per share a year ago.

Is It Worth Investing in Open Text Corp (NASDAQ: OTEX) Right Now?

The price-to-earnings ratio for Open Text Corp (NASDAQ: OTEX) is above average at 17.55x, Company’s 36-month beta value is 1.12.Analysts have differing opinions on the stock, with 13 analysts rating it as a “buy,” 3 as “overweight,” 7 as “hold,” and 0 as “sell.”

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The public float for OTEX is 262.52M, and currently, short sellers hold a 1.72% ratio of that floaft. The average trading volume of OTEX on October 31, 2024 was 544.89K shares.

OTEX’s Market Performance

OTEX’s stock has seen a -9.93% decrease for the week, with a -8.73% drop in the past month and a 5.34% gain in the past quarter. The volatility ratio for the week is 1.53%, and the volatility levels for the past 30 days are at 1.53% for Open Text Corp The simple moving average for the past 20 days is -10.11% for OTEX’s stock, with a -11.85% simple moving average for the past 200 days.

Analysts’ Opinion of OTEX

BMO Capital Markets, on the other hand, stated in their research note that they expect to see OTEX reach a price target of $38, previously predicting the price at $50. The rating they have provided for OTEX stocks is “Market Perform” according to the report published on May 03rd, 2024.

Jefferies gave a rating of “Buy” to OTEX, setting the target price at $45 in the report published on February 27th of the current year.

OTEX Trading at -8.52% from the 50-Day Moving Average

After a stumble in the market that brought OTEX to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -34.00% of loss for the given period.

Volatility was left at 1.53%, however, over the last 30 days, the volatility rate increased by 1.53%, as shares sank -8.56% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -6.28% lower at present.

During the last 5 trading sessions, OTEX fell by -9.60%, which changed the moving average for the period of 200-days by -24.55% in comparison to the 20-day moving average, which settled at $33.39. In addition, Open Text Corp saw -28.58% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for OTEX

Current profitability levels for the company are sitting at:

  • 0.17 for the present operating margin
  • 0.68 for the gross margin

The net margin for Open Text Corp stands at 0.08. The total capital return value is set at 0.08. Equity return is now at value 11.32, with 2.97 for asset returns.

Based on Open Text Corp (OTEX), the company’s capital structure generated 0.61 points at debt to capital in total, while cash flow to debt ratio is standing at 0.15. The debt to equity ratio resting at 1.54. The interest coverage ratio of the stock is 1.73.

Currently, EBITDA for the company is 1.81 billion with net debt to EBITDA at 2.98. When we switch over and look at the enterprise to sales, we see a ratio of 2.33. The receivables turnover for the company is 7.61for trailing twelve months and the total asset turnover is 0.41. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.80.

Conclusion

In a nutshell, Open Text Corp (OTEX) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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