Open Text (NASDAQ:OTEX) Coverage Initiated by Analysts at UBS Group

UBS Group assumed coverage on shares of Open Text (NASDAQ:OTEX) (TSE:OTC) in a report released on Tuesday, MarketBeat.com reports. The firm issued a neutral rating and a $32.00 price target on the software maker’s stock.

A number of other equities research analysts have also issued reports on OTEX. TD Securities dropped their price target 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. Barclays dropped their target price 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. BMO Capital Markets lowered their price target on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research report on Friday, November 1st. Scotiabank cut their price objective on shares of 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. Finally, Citigroup decreased their target price on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a report on Friday, November 1st. Nine equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $35.55.

Open Text Stock Down 3.2 %

NASDAQ OTEX opened at $28.63 on Tuesday. Open Text has a one year low of $27.50 and a one year high of $45.47. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79. The business has a fifty day moving average price of $31.10 and a 200 day moving average price of $31.03. The company has a market cap of $7.61 billion, a P/E ratio of 16.55 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, October 31st. The software maker reported $0.93 EPS for the quarter, beating analysts’ consensus estimates 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 analysts’ expectations of $1.28 billion. During the same period in the prior year, the business earned $0.90 earnings per share. The company’s quarterly revenue was down 11.0% compared to the same quarter last year. Research 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 will be paid on Friday, December 20th. Shareholders of record on Friday, November 29th will be given a $0.262 dividend. This is an increase from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 annualized dividend and a yield of 3.66%. The ex-dividend date of this dividend is Friday, November 29th. Open Text’s payout ratio is currently 60.69%.

Institutional Investors Weigh In On Open Text

A number of hedge funds have recently added to or reduced their stakes in OTEX. Blue Trust Inc. raised its position in 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. Ridgewood Investments LLC acquired a new stake in shares of Open Text in the 2nd quarter valued at $30,000. Kimelman & Baird LLC purchased a new stake in shares of Open Text during the 2nd quarter worth $36,000. Cromwell Holdings LLC grew its stake in shares of Open Text by 29.6% during 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 in the last quarter. Finally, Essex LLC purchased a new position in Open Text in the third quarter valued at $210,000. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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.