Analysts at BMO Capital Markets upgraded shares of Open Text Corp. (NASDAQ: OTEX) from Market Perform to Outperform on Tuesday, September 13. A number of other analysts have commented on the shares recently, and the company has earned a consensus one-year price target of $66.92 , higher than the opening price of $65.75. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.
U.S. stocks finished higher on Monday as investor fears for an interest rate hike subsided after Federal Reserve Board Governor Lael Brainard urged caution about removing monetary stimulus too quickly.
The Dow Jones Industrial Average DJIA, +1.32% surged 239.62 points, or 1.3%, to close at 18,325.07, after jumping as high as 273 points.
The S&P 500 SPX, +1.47% rose 31.23 points, or 1.5%, to finish at 2,159.04, with all sectors closing in positive territory.
Meanwhile, the Nasdaq Composite Index COMP, +1.68% finished up 85.98 points, or 1.7%, at 5,211.89, propelled by a rally in biotechnology shares
Shares of Open Text Corp. (NASDAQ: OTEX) opened at $65.75 and traded in a range between, $64.36 and $66.67 on Friday, and last traded at $64.78, which represents a change of $ -0.37 over the previous closing price. Open Text Corp.has a 52-week high of $66.67
Open Text Corp. (NASDAQ: OTEX) currently has a market cap of 7.82B
The stocks average daily volume is 259,638 shares out of a total float 118,414,000 of and some 250,397 shares traded hands yesterday, 92 percent lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
A moving average can also act as support or resistance. In an uptrend a 50-day or 200-day moving average may act as a support level.
With that in mind Open Text Corp. (NASDAQ: OTEX) now has a 50-day MA is $62.46 and 200-day MA is $57.28, and it has traded in a 52-week range between $41.93 – 66.67 and the last closing price is -0.03 percent off the 52 week high.
Earnings growth is an important factor to look at when investing in stocks and investors look for companies that have grown their earnings at least 25% or more for the past 3 years.
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