Open Text (NASDAQ:OTEX) Rating Lowered to Buy at StockNews.com

StockNews.com downgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a strong-buy rating to a buy rating in a report issued on Saturday morning.

OTEX has been the topic of a number of other research reports. BMO Capital Markets lowered their price objective on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a report on Friday, November 1st. TD Securities dropped their price objective on Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a report on Monday, December 30th. Royal Bank of Canada downgraded Open Text from an “outperform” rating to a “sector perform” rating and reduced their target price for the company from $45.00 to $33.00 in a report on Friday, November 1st. Scotiabank lowered their price target on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research note on Friday, November 1st. Finally, Citigroup reduced their price objective on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a research note on Friday, November 1st. Nine research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat, Open Text has an average rating of “Hold” and a consensus target price of $35.55.

Open Text Trading Down 1.3 %

Shares of OTEX stock opened at $27.50 on Friday. Open Text has a twelve month low of $26.96 and a twelve month high of $45.47. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. The business’s 50 day moving average is $29.17 and its two-hundred day moving average is $30.92. The company has a market capitalization of $7.27 billion, a P/E ratio of 15.90 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.80 by $0.13. Open Text had a net margin of 8.35% and a return on equity of 24.34%. The company had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.28 billion. During the same period in the previous year, the company posted $0.90 EPS. Open Text’s revenue was down 11.0% compared to the same quarter last year. Equities analysts forecast that Open Text will post 3.37 EPS for the current year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, November 29th were issued a $0.262 dividend. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.81%. This is a boost from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date was Friday, November 29th. Open Text’s payout ratio is 60.69%.

Institutional Trading of Open Text

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in OTEX. Blue Trust Inc. boosted its stake in shares of Open Text by 435.7% during the 3rd quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock worth $32,000 after purchasing an additional 793 shares during the last quarter. Kimelman & Baird LLC acquired a new stake in Open Text during the second quarter worth approximately $36,000. Cromwell Holdings LLC raised its holdings in Open Text by 29.6% in the 3rd quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock valued at $55,000 after acquiring an additional 380 shares during the last quarter. Essex LLC purchased a new position in shares of Open Text during the 3rd quarter worth $210,000. Finally, Net Worth Advisory Group purchased a new stake in shares of Open Text in the third quarter valued at $226,000. Hedge funds and other institutional investors own 70.37% of the company’s stock.

About Open Text

Open Text Corporation provides information management software and solutions. The company offers content services, which includes content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation.