Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Open Text Corporation as such a stock due to the following factors:
- OTEX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.1 million.
- OTEX has traded 212,979 shares today.
- OTEX is down 3% today.
- OTEX was up 10.5% yesterday.
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More details on OTEX:
Open Text Corporation engages in the design, development, marketing, and sale of enterprise information management software and solutions. The stock currently has a dividend yield of 0.7%. OTEX has a PE ratio of 35.3. Currently there are 7 analysts that rate Open Text Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Open Text Corporation has been 341,200 shares per day over the past 30 days. Open Text has a market cap of $5.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.56 and a short float of 9.4% with 9.34 days to cover. Shares are up 8.9% year-to-date as of the close of trading on Friday.
rates Open Text Corporation as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, OTEX's share price has jumped by 55.09%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, OTEX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 12.0%. Since the same quarter one year prior, revenues slightly increased by 3.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for OPEN TEXT CORP is currently very high, coming in at 73.89%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.71% trails the industry average.
- Despite currently having a low debt-to-equity ratio of 0.39, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.41 is sturdy.
- OPEN TEXT CORP's earnings per share declined by 13.5% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, OPEN TEXT CORP increased its bottom line by earning $2.52 versus $2.14 in the prior year.
- You can view the full Open Text Corporation Ratings Report.