Open Text (NASDAQ:OTEX) Given New $38.00 Price Target at TD Securities

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price cut by TD Securities from $40.00 to $38.00 in a research report sent to investors on Tuesday,BayStreet.CA reports. They currently have a buy rating on the software maker’s stock.

Other analysts have also issued research reports about the company. Royal Bank of Canada lowered Open Text from an “outperform” rating to a “sector perform” rating and cut their price objective for the company from $45.00 to $33.00 in a report on Friday, November 1st. BMO Capital Markets reduced 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. Scotiabank dropped their price target on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a report on Friday, November 1st. Citigroup decreased their target price on Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a report on Friday, November 1st. Finally, UBS Group started coverage on Open Text in a report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 target price for the company. Nine investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, Open Text currently has a consensus rating of “Hold” and a consensus target price of $35.55.

Open Text Price Performance

Shares of NASDAQ:OTEX opened at $28.01 on Tuesday. The company has a market cap of $7.45 billion, a PE ratio of 16.19 and a beta of 1.11. Open Text has a fifty-two week low of $27.05 and a fifty-two week high of $45.47. The firm has a 50-day simple moving average of $30.52 and a 200 day simple moving average of $31.01. 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 announced its earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.13. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The firm had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter in the previous year, the business earned $0.90 EPS. The firm’s revenue for the quarter was down 11.0% on a year-over-year basis. On average, sell-side analysts anticipate that Open Text will post 3.37 EPS for the current year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, November 29th were 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 dividend yield of 3.74%. The ex-dividend date was Friday, November 29th. Open Text’s dividend payout ratio (DPR) is currently 60.69%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of OTEX. Brandes Investment Partners LP raised its stake in Open Text by 236.8% during the 2nd quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock valued at $55,059,000 after purchasing an additional 1,290,011 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in shares of Open Text by 25.1% during the second quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock valued at $167,277,000 after purchasing an additional 1,118,479 shares during the period. Cooke & Bieler LP raised its stake in shares of Open Text by 18.6% in the second quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock valued at $166,325,000 after purchasing an additional 867,978 shares in the last quarter. JARISLOWSKY FRASER Ltd boosted its stake in Open Text by 5.1% during the second quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock worth $471,415,000 after buying an additional 767,822 shares in the last quarter. Finally, National Bank of Canada FI raised its stake in shares of Open Text by 17.5% in the 2nd quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock valued at $120,390,000 after buying an additional 599,790 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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.