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

StockNews.com cut shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a strong-buy rating to a buy rating in a research report report published on Wednesday.

Several other research firms have also issued reports on OTEX. Barclays reduced their price target on Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a research report on Friday, November 1st. Royal Bank of Canada cut shares of Open Text from an “outperform” rating to a “sector perform” rating and cut their target price for the stock 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 for the company in a report on Friday, November 1st. UBS Group started coverage on shares of Open Text in a report on Tuesday, December 17th. They issued a “neutral” rating and a $32.00 price target on the stock. Finally, BMO Capital Markets dropped their target price on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st. Nine investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $35.55.

Open Text Trading Up 0.6 %

OTEX stock opened at $28.31 on Wednesday. The company has a market capitalization of $7.49 billion, a PE ratio of 16.36 and a beta of 1.11. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79. Open Text has a one year low of $27.05 and a one year high of $45.47. The company’s 50 day moving average price is $30.17 and its two-hundred day moving average price is $30.97.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, topping 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 business had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the previous year, the firm posted $0.90 earnings per share. The firm’s revenue for the quarter was down 11.0% on a year-over-year basis. As a group, analysts predict that Open Text will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, November 29th were given a $0.262 dividend. The ex-dividend date of this dividend was Friday, November 29th. This is an increase from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.70%. Open Text’s dividend payout ratio is currently 60.69%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of OTEX. Assenagon Asset Management S.A. increased its stake in shares of Open Text by 1.7% during the third quarter. Assenagon Asset Management S.A. now owns 18,872 shares of the software maker’s stock valued at $629,000 after purchasing an additional 322 shares in the last quarter. BNP Paribas Financial Markets increased its position in Open Text by 3.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 11,093 shares of the software maker’s stock valued at $369,000 after buying an additional 351 shares in the last quarter. Cromwell Holdings LLC raised its stake in Open Text by 29.6% during the third quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock valued at $55,000 after buying an additional 380 shares during the last quarter. Blue Trust Inc. boosted its holdings in Open Text by 435.7% in the third quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock worth $32,000 after acquiring an additional 793 shares in the last quarter. Finally, Vanguard Personalized Indexing Management LLC increased its holdings in shares of Open Text by 5.3% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 17,436 shares of the software maker’s stock valued at $524,000 after acquiring an additional 874 shares in the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Company Profile

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.