Open Text (NASDAQ:OTEX) Rating Increased to Outperform at Scotiabank

Scotiabank upgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a sector perform rating to an outperform rating in a research note issued to investors on Wednesday, MarketBeat.com reports. Scotiabank currently has $50.00 price target on the software maker’s stock, up from their previous price target of $35.00.

Several other analysts also recently issued reports on OTEX. Barclays reissued a “positive” rating on shares of Open Text in a report on Friday, August 8th. CIBC reissued a “neutral” rating on shares of Open Text in a report on Monday, August 11th. National Bank Financial raised Open Text from a “sector perform” rating to an “outperform” rating and set a $45.00 price target on the stock in a report on Monday, September 15th. Royal Bank Of Canada raised their price target on Open Text from $30.00 to $35.00 and gave the stock a “sector perform” rating in a report on Tuesday, September 2nd. Finally, National Bankshares raised Open Text from a “sector perform” rating to an “outperform” rating and raised their price target for the stock from $34.00 to $45.00 in a report on Monday, September 15th. Five investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $36.55.

Open Text Trading Up 2.8%

NASDAQ:OTEX opened at $38.16 on Wednesday. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.61. The business’s 50 day moving average is $32.30 and its two-hundred day moving average is $28.94. Open Text has a 52 week low of $22.79 and a 52 week high of $39.04. The company has a market cap of $9.65 billion, a PE ratio of 23.13 and a beta of 1.16.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, topping analysts’ consensus estimates of $0.86 by $0.11. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The company had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter last year, the business posted $0.98 EPS. Open Text’s quarterly revenue was down 3.8% compared to the same quarter last year. On average, analysts predict that Open Text will post 3.45 EPS for the current year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 19th. Investors of record on Friday, September 5th were given a $0.275 dividend. The ex-dividend date was Friday, September 5th. This represents a $1.10 annualized dividend and a yield of 2.9%. This is an increase from Open Text’s previous quarterly dividend of $0.26. Open Text’s payout ratio is 66.67%.

Hedge Funds Weigh In On Open Text

Several hedge funds have recently modified their holdings of OTEX. Norges Bank acquired a new position in shares of Open Text during the 2nd quarter valued at $98,882,000. Brandes Investment Partners LP grew its holdings in shares of Open Text by 42.7% in the 2nd quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker’s stock worth $244,356,000 after acquiring an additional 2,506,058 shares during the last quarter. Value Partners Investments Inc. grew its holdings in shares of Open Text by 1,162.1% in the 1st quarter. Value Partners Investments Inc. now owns 2,333,539 shares of the software maker’s stock worth $58,955,000 after acquiring an additional 2,148,639 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Open Text by 11.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker’s stock worth $225,898,000 after acquiring an additional 810,352 shares during the last quarter. Finally, Letko Brosseau & Associates Inc. grew its holdings in shares of Open Text by 16.2% in the 2nd quarter. Letko Brosseau & Associates Inc. now owns 5,649,818 shares of the software maker’s stock worth $164,754,000 after acquiring an additional 789,013 shares during the last quarter. 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.