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How to buy Open Text Corporation stock | $45.88

Own Open Text Corporation stock in just a few minutes.

Fact checked

Open Text Corporation is a software-application business based in the US. Open Text Corporation shares (OTEX) are listed on the NASDAQ and all prices are listed in US Dollars. Open Text Corporation employs 14,300 staff and has a trailing 12-month revenue of around USD$3.2 billion.

How to buy shares in Open Text Corporation

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Open Text Corporation. Find the stock by name or ticker symbol: OTEX. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Open Text Corporation reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$45.88, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Open Text Corporation, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Open Text Corporation. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Open Text Corporation share price

Use our graph to track the performance of OTEX stocks over time.

Open Text Corporation shares at a glance

Information last updated 2020-12-04.
Latest market closeUSD$45.88
52-week rangeUSD$28.7529 - USD$47.1311
50-day moving average USD$41.3637
200-day moving average USD$42.6404
Wall St. target priceUSD$52.09
PE ratio 46.7217
Dividend yield USD$0.8 (1.78%)
Earnings per share (TTM) USD$0.97

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Open Text Corporation stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Open Text Corporation price performance over time

Historical closes compared with the close of $45.88 from 2020-12-09

1 week (2021-01-12) N/A
1 month (2020-12-23) 1.66%
3 months (2020-10-19) N/A
6 months (2020-07-19) N/A
1 year (2020-01-19) N/A
2 years (2019-01-19) N/A
3 years (2018-01-19) N/A
5 years (2016-01-19) N/A

Is Open Text Corporation under- or over-valued?

Valuing Open Text Corporation stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Open Text Corporation's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Open Text Corporation's P/E ratio

Open Text Corporation's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 47x. In other words, Open Text Corporation shares trade at around 47x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Open Text Corporation's PEG ratio

Open Text Corporation's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.87. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Open Text Corporation's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Open Text Corporation's EBITDA

Open Text Corporation's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$976.5 million.

The EBITDA is a measure of a Open Text Corporation's overall financial performance and is widely used to measure a its profitability.

Open Text Corporation financials

Revenue TTM USD$3.2 billion
Operating margin TTM 20.51%
Gross profit TTM USD$2.3 billion
Return on assets TTM 4.54%
Return on equity TTM 6.6%
Profit margin 8.18%
Book value $15.017
Market capitalisation USD$12.3 billion

TTM: trailing 12 months

Shorting Open Text Corporation shares

There are currently 5.0 million Open Text Corporation shares held short by investors – that's known as Open Text Corporation's "short interest". This figure is 19.9% down from 6.2 million last month.

There are a few different ways that this level of interest in shorting Open Text Corporation shares can be evaluated.

Open Text Corporation's "short interest ratio" (SIR)

Open Text Corporation's "short interest ratio" (SIR) is the quantity of Open Text Corporation shares currently shorted divided by the average quantity of Open Text Corporation shares traded daily (recently around 855752.47863248). Open Text Corporation's SIR currently stands at 5.85. In other words for every 100,000 Open Text Corporation shares traded daily on the market, roughly 5850 shares are currently held short.

However Open Text Corporation's short interest can also be evaluated against the total number of Open Text Corporation shares, or, against the total number of tradable Open Text Corporation shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Open Text Corporation's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Open Text Corporation shares in existence, roughly 20 shares are currently held short) or 0.0187% of the tradable shares (for every 100,000 tradable Open Text Corporation shares, roughly 19 shares are currently held short).

A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Open Text Corporation.

Find out more about how you can short Open Text Corporation stock.

Open Text Corporation's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Open Text Corporation.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Open Text Corporation's total ESG risk score

Total ESG risk: 19.6

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Open Text Corporation's overall score of 19.6 (as at 01/01/2019) is excellent – landing it in it in the 14th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Open Text Corporation is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Open Text Corporation's environmental score

Environmental score: 0.77/100

Open Text Corporation's environmental score of 0.77 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Open Text Corporation is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Open Text Corporation's social score

Social score: 11.04/100

Open Text Corporation's social score of 11.04 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Open Text Corporation is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Open Text Corporation's governance score

Governance score: 4.29/100

Open Text Corporation's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Open Text Corporation is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Environmental, social, and governance (ESG) summary

Open Text Corporation was last rated for ESG on: 2019-01-01.

Total ESG score 19.6
Total ESG percentile 13.6
Environmental score 0.77
Environmental score percentile 3
Social score 11.04
Social score percentile 3
Governance score 4.29
Governance score percentile 3

Open Text Corporation share dividends

23%

Dividend payout ratio: 23.08% of net profits

Recently Open Text Corporation has paid out, on average, around 23.08% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.78% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Open Text Corporation shareholders could enjoy a 1.78% return on their shares, in the form of dividend payments. In Open Text Corporation's case, that would currently equate to about $0.8 per share.

While Open Text Corporation's payout ratio might seem low, this can signify that Open Text Corporation is investing more in its future growth.

Open Text Corporation's most recent dividend payout was on 22 December 2020. The latest dividend was paid out to all shareholders who bought their shares by 3 December 2020 (the "ex-dividend date").

Have Open Text Corporation's shares ever split?

Open Text Corporation's shares were split on a 2:1 basis on 25 January 2017. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Open Text Corporation shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Open Text Corporation shares which in turn could have impacted Open Text Corporation's share price.

Open Text Corporation share price volatility

Over the last 12 months, Open Text Corporation's shares have ranged in value from as little as $28.7529 up to $47.1311. A popular way to gauge a stock's volatility is its "beta".

OTEX.US volatility(beta: 0.89)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Open Text Corporation's is 0.8945. This would suggest that Open Text Corporation's shares are less volatile than average (for this exchange).

Open Text Corporation overview

Open Text Corporation provides a suite of software products and services. The company offers content services; business network that manages and connects data within the organization; Cyber Resilience, a solution for defending against cyber threats and preparing for business continuity and response in the event of a breach; OpenText security solutions that addresses information security and digital investigations; AI and analytics that leverages structured or unstructured data; and OpenText Information Management software platform that provides multi-level, multi-role, and multi context security information platforms. It also offers digital process automation, which enables organizations to transform into digital data-driven businesses through automation; Customer Experience Management, a set of processes used to track customer interactions throughout the customer journey; and Discovery suite that provides forensics and unstructured data analytics for searching, collecting, and investigating enterprise data to manage legal obligations and risk. In addition, the company offers customer support programs that include access to software upgrades, a knowledge base, discussions, product information, and an online mechanism to post and review trouble tickets. Further, it provides professional services, such as consulting and learning services relating to the implementation, training, and integration of its licensed product offerings, as well as cloud services. The company serves organizations, enterprise companies, mid-market companies, and public sector agencies worldwide. It has strategic partnerships with SAP SE, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, Google Cloud, Amazon AWS, Accenture plc, Deloitte Consulting LLP, Tata Consultancy Services, ATOS, ATOS International S.A.S., Capgemini Technology Services SAS, and Cognizant Technology Solutions U.S. Corp. The company was founded in 1991 and is headquartered in Waterloo, Canada.

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