Open Text Corporation Stock Price and Value Analysis

Should you buy Open Text Corporation stock? (NasdaqGS:OTEX). Let's see how it does in our automated value investing analysis system.

  • This stock is on sale.
  • This company has a large dividend yield!
  • This company has wild ups and downs.
  • This company is less known than others.
  • This company is making money at a modest rate.

Inside the OTEX Numbers

OTEX Price
(Open Text Corporation stock price per share)
[?] OTEX Fair Price
(based on intrinsic value)
[?] OTEX Safety Price (based on a variable margin of safety) $19.81
[?] PE Ratio versus Sector 429% higher than other Technology stocks
[?] PE Ratio versus Industry 186% higher than other Unknown stocks
[?] Cash Yield 10.88%
[?] Free Cash Flow Jitter 86%
[?] Dividend Yield 3%
Shares Shorted 5,508,427

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 5,508,427 shares shorted. With 260,610,037 shares available for purchase and an average trading volume over the past 10 trading days of 518,180, it would take at least 10.63 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is Open Text Corporation Stock on Sale?

We believe that Open Text Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Open Text Corporation looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.

Should You Buy OTEX Stock?

Does Open Text Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.