Open Text (NASDAQ:OTEX) Downgraded by StockNews.com to “Hold”

StockNews.com downgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a hold rating in a research note issued to investors on Monday morning.

Several other research firms have also recently weighed in on OTEX. Citigroup increased their price objective on Open Text from $29.00 to $43.00 and gave the company a “negative” rating in a research report on Friday. TD Securities decreased their price target on shares of Open Text from $38.00 to $35.00 and set a “buy” rating on the stock in a research report on Sunday, February 9th. UBS Group dropped their price objective on shares of Open Text from $32.00 to $28.00 and set a “neutral” rating on the stock in a report on Friday. CIBC decreased their target price on Open Text from $33.00 to $31.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Barclays cut their price target on Open Text from $36.00 to $29.00 and set an “equal weight” rating for the company in a report on Monday, April 21st. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Open Text currently has an average rating of “Hold” and an average price target of $32.30.

Open Text Price Performance

Shares of Open Text stock opened at $26.82 on Monday. Open Text has a 1-year low of $22.79 and a 1-year high of $34.20. The firm has a fifty day simple moving average of $25.73 and a 200-day simple moving average of $28.02. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.50. The stock has a market capitalization of $6.96 billion, a price-to-earnings ratio of 10.90 and a beta of 1.13.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings results on Wednesday, April 30th. The software maker reported $0.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.81 by $0.01. Open Text had a net margin of 12.21% and a return on equity of 23.23%. The company had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.28 billion. During the same period in the prior year, the company earned $0.94 earnings per share. The business’s quarterly revenue was down 13.3% compared to the same quarter last year. On average, sell-side analysts expect that Open Text will post 3.45 earnings per share for the current year.

Open Text Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 20th. Investors of record on Friday, June 6th will be issued a dividend of $0.2625 per share. The ex-dividend date of this dividend is Friday, June 6th. This represents a $1.05 dividend on an annualized basis and a yield of 3.91%. Open Text’s dividend payout ratio is 42.68%.

Institutional Trading of Open Text

Hedge funds and other institutional investors have recently made changes to their positions in the business. Versant Capital Management Inc bought a new stake in Open Text during the 1st quarter worth about $26,000. IFP Advisors Inc boosted its position in Open Text by 103.8% in the 4th quarter. IFP Advisors Inc now owns 1,011 shares of the software maker’s stock valued at $29,000 after buying an additional 515 shares during the last quarter. Blue Trust Inc. raised its position in shares of Open Text by 40.8% during the fourth quarter. Blue Trust Inc. now owns 1,373 shares of the software maker’s stock worth $39,000 after acquiring an additional 398 shares during the last quarter. Parallel Advisors LLC boosted its holdings in Open Text by 219.3% in the first quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker’s stock valued at $49,000 after acquiring an additional 1,331 shares during the last quarter. Finally, Aquatic Capital Management LLC acquired a new position in Open Text in the fourth quarter valued at approximately $60,000. 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.