Open Text (NASDAQ:OTEX) Upgraded at StockNews.com

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

OTEX has been the subject of several other research reports. Scotiabank decreased their target price on Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research report on Friday, November 1st. TD Securities lowered their price objective on Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a research report on Friday, November 1st. Citigroup reduced their target price on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a research report on Friday, November 1st. Barclays lowered their price target on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a research report on Friday, November 1st. Finally, UBS Group started coverage on shares of Open Text in a report on Tuesday. They issued a “neutral” rating and a $32.00 price objective on the stock. Nine equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $35.55.

Open Text Price Performance

Shares of Open Text stock opened at $27.42 on Tuesday. The company has a market cap of $7.29 billion, a PE ratio of 15.85 and a beta of 1.11. The business has a 50 day moving average of $30.76 and a 200 day moving average of $30.97. Open Text has a 52 week low of $27.20 and a 52 week high of $45.47. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.54.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its earnings results on Thursday, October 31st. The software maker reported $0.93 EPS 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 firm had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.28 billion. During the same period last year, the company posted $0.90 EPS. The company’s quarterly revenue was down 11.0% compared to the same quarter last year. As a group, equities research analysts forecast that Open Text will post 3.37 earnings per share for the current year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Stockholders of record on Friday, November 29th will be paid a $0.262 dividend. The ex-dividend date of this dividend is Friday, November 29th. This represents a $1.05 annualized dividend and a dividend yield of 3.82%. This is a boost from Open Text’s previous quarterly dividend of $0.19. Open Text’s payout ratio is currently 60.69%.

Institutional Investors Weigh In On Open Text

Several institutional investors have recently modified their holdings of OTEX. Blue Trust Inc. lifted its stake in Open Text by 435.7% during the 3rd quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock valued at $32,000 after acquiring an additional 793 shares during the period. Ridgewood Investments LLC purchased a new position in shares of Open Text during the second quarter valued at approximately $30,000. Kimelman & Baird LLC bought a new position in Open Text during the second quarter valued at approximately $36,000. Cromwell Holdings LLC boosted its holdings in Open Text by 29.6% in the third quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock worth $55,000 after purchasing an additional 380 shares during the last quarter. Finally, Essex LLC bought a new stake in Open Text in the 3rd quarter worth approximately $210,000. 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.