Open Text Corporation (OTEX) Stock Faces Higher Risks Forward After Forming Bearish Ascending Triangle Chart Pattern

July 13, 2018 - By Jenna Rose

Open Text Corporation (NASDAQ:OTEX) Logo

The stock of Open Text Corporation (OTEX) formed an ascending triangle with $34.53 target or 9.00 % below today’s $37.95 share price. The 9 months triangle pattern indicates high risk for the $10.15B company. If the $34.53 price target is reached, the company will be worth $913.50 million less.
The ascending triangle is a questionable performer despite its reputation as a reliable chart pattern. The ascending triangle has break even failure rate for up and down breakouts of 13% and 11%, respectively. The average rise and decline is 35% and 19%. The throwback or so called pullback rates are: 57% and 49%. The stocks meeting their targets is high for this type of breakout: 75% and 68% percent.

The stock increased 0.50% or $0.19 during the last trading session, reaching $37.95. About 247,034 shares traded. Open Text Corporation (NASDAQ:OTEX) has risen 6.83% since July 13, 2017 and is uptrending. It has underperformed by 5.74% the S&P500.

Analysts await Open Text Corporation (NASDAQ:OTEX) to report earnings on August, 2. They expect $0.24 earnings per share, up 41.18 % or $0.07 from last year’s $0.17 per share. OTEX’s profit will be $64.19 million for 39.53 P/E if the $0.24 EPS becomes a reality. After $0.22 actual earnings per share reported by Open Text Corporation for the previous quarter, Wall Street now forecasts 9.09 % EPS growth.

Open Text Corporation (NASDAQ:OTEX) Ratings Coverage

Among 5 analysts covering Open Text (NASDAQ:OTEX), 5 have Buy rating, 0 Sell and 0 Hold. Therefore 100% are positive. Open Text had 5 analyst reports since February 1, 2018 according to SRatingsIntel. Barclays Capital maintained Open Text Corporation (NASDAQ:OTEX) on Thursday, February 1 with “Overweight” rating. The stock of Open Text Corporation (NASDAQ:OTEX) has “Buy” rating given on Thursday, February 1 by BMO Capital Markets. The rating was maintained by RBC Capital Markets on Thursday, February 1 with “Buy”. Scotia Capital maintained the shares of OTEX in report on Thursday, February 1 with “Buy” rating.

Another recent and important Open Text Corporation (NASDAQ:OTEX) news was published by Seekingalpha.com which published an article titled: “Open Text Is Opening New Doors” on June 25, 2018.

Open Text Corporation provides a suite of software services and products that assist organizations in finding, utilizing, and sharing business information from various devices. The company has market cap of $10.15 billion. The firm offers content solutions that provide content and records management, archiving, and email management and capture solutions, as well as Core, a software as a service based multi-tenant cloud solution; business process management for analyzing, automating, monitoring, and optimizing structured business processes; and customer experience management products, which offer Web content management, digital asset management, customer communications management, social software, and portal. It has a 44.44 P/E ratio. The Company’s products also include business network solutions comprising business-to-business integration, fax solutions, and secure messaging; analytics solutions, including embedded reporting and visualization, and big data analysis; and discovery solutions consisting of search, semantic navigation, and auto classification, as well as InfoFusion to deal with the issue of ‘information silosÂ’ resulting from disconnected information sources across the enterprise.

Open Text Corporation (NASDAQ:OTEX) Ratings Chart

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