tiprankstipranks
Market News

OpenText Corp. Updates 1 Key Risk Factor

Shares of OpenText Corp. (OTEX) have dropped 5.9% so far this year. The company provides information management solutions with its OpenText cloud editions. Recently, OTEX delivered better-than-estimated second-quarter performance on the revenue front.

On the back of robust demand for OpenText Cloud editions, revenue increased 2.5% year-over-year to $876.8 million, beating estimates by $4.5 million. Earnings per share at $0.89 came in line with the Street’s expectations.

Further, OTEX has declared a dividend of $0.2209 per share. It is payable on March 25 to investors on record as of March 4.

Moreover, the company is collaborating with Google Cloud, under which OTEX will launch its OpenText Core content as a service on Google Cloud. The move will help customers deploy OTEX’s enterprise productivity suite on a global and trusted infrastructure.

With these developments in mind, let’s have a look at the changes in OTEX’s key risk factors that investors should know.

Risk Factors

According to the TipRanks Risk Factors tool, OpenText’s top risk category is Finance & Corporate, contributing 12 of the total 47 risks identified for the stock, compared to a sector average of 16 risk factors under the same category.

In its recent report, the company has added one key risk factor under the Finance & Corporate risk category.

OTEX recently acquired Zix Corp. The company highlighted that it may have to devote substantial management attention and resources to integrating the two companies’ operations. If OTEX fails to realize the envisaged benefits of this acquisition or takes longer than anticipated to achieve them, then its business could see an adverse impact.

Hedge Fund Activity

According to TipRanks data, the Wall Street’s top hedge funds have decreased holdings in OpenText by 75.2 thousand shares in the last quarter, indicating a negative hedge fund confidence signal in the stock based on activities of 6 hedge funds. Notably, Ray Dalio’s Bridgewater Associates has a holding worth about $3.26 million in OTEX.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Related News:
Teradata Beats Q4 Earnings Expectations & FY2022 Outlook; Shares Up 7%
Spotify Agrees $320 Million Barcelona Sponsorship Deal – Report
Take-Two Posts Mixed Q3 Results; Shares Sink More Than 2%

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More