Open Text (NASDAQ:OTEX) Shares Gap Down After Analyst Downgrade

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) shares gapped down before the market opened on Friday after Jefferies Financial Group lowered their price target on the stock from $45.00 to $42.00. The stock had previously closed at $35.47, but opened at $30.44. Jefferies Financial Group currently has a buy rating on the stock. Open Text shares last traded at $29.86, with a volume of 1,249,416 shares trading hands.

A number of other research analysts have also recently weighed in on the stock. CIBC lowered their target price on shares of Open Text from $44.00 to $38.50 and set a “neutral” rating on the stock in a research note on Friday. BMO Capital Markets cut shares of Open Text from an “outperform” rating to a “market perform” rating and decreased their price target for the stock from $50.00 to $38.00 in a research note on Friday. TD Securities decreased their price target on shares of Open Text from $54.00 to $40.00 and set a “buy” rating on the stock in a research note on Friday. Barclays decreased their price target on shares of Open Text from $44.00 to $38.00 and set an “equal weight” rating on the stock in a research note on Friday. Finally, StockNews.com upgraded shares of Open Text from a “hold” rating to a “buy” rating in a research note on Tuesday, February 6th. Five analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat, Open Text has an average rating of “Moderate Buy” and an average target price of $42.25.

Hedge Funds Weigh In On Open Text

Hedge funds have recently added to or reduced their stakes in the company. Optiver Holding B.V. bought a new position in Open Text during the 4th quarter valued at about $27,000. Pacifica Partners Inc. bought a new position in Open Text during the 4th quarter valued at about $32,000. Allworth Financial LP grew its holdings in Open Text by 125.7% during the 3rd quarter. Allworth Financial LP now owns 957 shares of the software maker’s stock valued at $34,000 after purchasing an additional 533 shares during the last quarter. Assetmark Inc. bought a new position in Open Text during the 4th quarter valued at about $48,000. Finally, EverSource Wealth Advisors LLC grew its holdings in Open Text by 18.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock valued at $92,000 after purchasing an additional 334 shares during the last quarter. 70.37% of the stock is currently owned by institutional investors.

Open Text Price Performance

The company has a market capitalization of $8.25 billion, a P/E ratio of 64.36 and a beta of 1.11. The firm’s fifty day moving average is $37.32 and its 200 day moving average is $38.70. The company has a debt-to-equity ratio of 2.10, a quick ratio of 1.38 and a current ratio of 1.38.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, February 1st. The software maker reported $1.11 EPS for the quarter, topping analysts’ consensus estimates of $1.10 by $0.01. The business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.48 billion. Open Text had a net margin of 2.24% and a return on equity of 22.99%. As a group, analysts predict that Open Text Co. will post 4.14 earnings per share for the current fiscal year.

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.