Open Text (NASDAQ:OTEX) Lowered to Buy Rating by StockNews.com

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

A number of other research analysts have also recently commented on the company. Royal Bank of Canada cut Open Text from an “outperform” rating to a “sector perform” rating and decreased their price objective for the company from $45.00 to $33.00 in a report on Friday, November 1st. TD Securities lowered their price target on Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a report on Monday, December 30th. Citigroup reduced their price objective 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. Barclays lowered their target price on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a research note on Friday, November 1st. Finally, BMO Capital Markets reduced 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 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. According to data from MarketBeat.com, Open Text has a consensus rating of “Hold” and a consensus price target of $35.55.

Open Text Stock Down 1.3 %

Shares of NASDAQ:OTEX opened at $27.50 on Friday. Open Text has a 52-week low of $26.96 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. The business has a fifty day moving average of $29.17 and a two-hundred day moving average of $30.92. The stock has a market cap of $7.27 billion, a P/E ratio of 15.90 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.80 by $0.13. The firm had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.28 billion. Open Text had a net margin of 8.35% and a return on equity of 24.34%. Open Text’s revenue was down 11.0% compared to the same quarter last year. During the same period last year, the business earned $0.90 earnings per share. On average, research analysts expect that Open Text will post 3.37 earnings per share for the current year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, November 29th were paid a $0.262 dividend. This is a boost from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 annualized dividend and a dividend yield of 3.81%. The ex-dividend date was Friday, November 29th. Open Text’s dividend payout ratio (DPR) is presently 60.69%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. JARISLOWSKY FRASER Ltd boosted its stake in shares of Open Text by 5.1% in the 2nd quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock valued at $471,415,000 after buying an additional 767,822 shares during the period. The Manufacturers Life Insurance Company boosted its holdings in Open Text by 1.1% in the third quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker’s stock valued at $187,952,000 after purchasing an additional 63,620 shares in the last quarter. National Bank of Canada FI grew its position in shares of Open Text by 1.1% in the 3rd quarter. National Bank of Canada FI now owns 4,068,116 shares of the software maker’s stock valued at $135,399,000 after buying an additional 46,223 shares during the last quarter. Clearbridge Investments LLC lifted its position in Open Text by 6.9% in the second quarter. Clearbridge Investments LLC now owns 2,954,755 shares of the software maker’s stock valued at $88,754,000 after acquiring an additional 191,271 shares during the last quarter. Finally, 1832 Asset Management L.P. grew its holdings in shares of Open Text by 2.0% during the second quarter. 1832 Asset Management L.P. now owns 2,932,456 shares of the software maker’s stock worth $88,091,000 after purchasing an additional 58,561 shares during the last quarter. 70.37% of the stock is 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.