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 report issued on Saturday.

Other analysts have also issued reports about the stock. TD Securities decreased their price target on shares of Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a research report on Monday, December 30th. Royal Bank of Canada downgraded Open Text from an “outperform” rating to a “sector perform” rating and decreased their target price for the stock from $45.00 to $33.00 in a research report on Friday, November 1st. Barclays cut their price target on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a report on Friday, November 1st. UBS Group began coverage on Open Text in a report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 price objective on the stock. Finally, Citigroup cut their target price on 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 investment analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat, Open Text has a consensus rating of “Hold” and an average price target of $35.55.

Open Text Stock Down 1.1 %

OTEX stock opened at $27.19 on Friday. The firm has a market cap of $7.19 billion, a PE ratio of 15.72 and a beta of 1.12. Open Text has a 1 year low of $26.84 and a 1 year high of $45.47. The company has a fifty day simple moving average of $29.14 and a 200 day simple moving average of $30.91. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54.

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

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, November 29th were issued a dividend of $0.262 per share. The ex-dividend date was Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.85%. This is an increase from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio (DPR) is currently 60.69%.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Assenagon Asset Management S.A. lifted its position in shares of Open Text by 1.7% during the 3rd quarter. Assenagon Asset Management S.A. now owns 18,872 shares of the software maker’s stock worth $629,000 after buying an additional 322 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in shares of Open Text by 3.3% in the third quarter. BNP Paribas Financial Markets now owns 11,093 shares of the software maker’s stock worth $369,000 after acquiring an additional 351 shares during the last quarter. Cromwell Holdings LLC boosted its stake in shares of 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 purchasing an additional 380 shares in the last quarter. Blue Trust Inc. boosted its stake in shares of Open Text by 435.7% in the 3rd quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock valued at $32,000 after purchasing an additional 793 shares in the last quarter. Finally, Vanguard Personalized Indexing Management LLC increased its position in Open Text by 5.3% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 17,436 shares of the software maker’s stock worth $524,000 after purchasing an additional 874 shares in the last quarter. 70.37% of the stock is owned by 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.