Open Text (NASDAQ:OTEX) Cut to Market Perform at BMO Capital Markets

BMO Capital Markets downgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from an outperform rating to a market perform rating in a research note released on Friday, Marketbeat Ratings reports. They currently have $38.00 price target on the software maker’s stock, down from their prior price target of $50.00.

A number of other analysts have also recently weighed in on the stock. StockNews.com raised shares of Open Text from a hold rating to a buy rating in a research report on Tuesday, February 6th. TD Securities upped their price objective on shares of Open Text from $53.00 to $54.00 and gave the company a buy rating in a research report on Friday, February 2nd. Jefferies Financial Group initiated coverage on shares of Open Text in a research note on Tuesday, February 27th. They issued a buy rating and a $45.00 target price on the stock. CIBC upped their target price on shares of Open Text from $42.00 to $44.00 and gave the company a neutral rating in a research note on Thursday, January 11th. Finally, Citigroup dropped their price objective on shares of Open Text from $44.00 to $42.00 and set a neutral rating on the stock in a research note on Friday, March 22nd. Six research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of Hold and a consensus target price of $42.25.

Open Text Stock Down 14.7 %

Open Text stock traded down $5.22 during trading on Friday, reaching $30.25. 3,706,318 shares of the company’s stock were exchanged, compared to its average volume of 728,893. The company’s 50-day moving average is $37.32 and its two-hundred day moving average is $38.70. The company has a debt-to-equity ratio of 2.10, a quick ratio of 1.38 and a current ratio of 1.38. Open Text has a 52-week low of $28.19 and a 52-week high of $45.47. The firm has a market cap of $8.25 billion, a price-to-earnings ratio of 48.79 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings results on Thursday, February 1st. The software maker reported $1.11 earnings per share for the quarter, topping analysts’ consensus estimates of $1.10 by $0.01. Open Text had a net margin of 2.85% and a return on equity of 24.61%. The firm had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.48 billion. On average, analysts predict that Open Text will post 4.14 earnings per share for the current year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 18th. Shareholders of record on Friday, May 31st will be given a $0.435 dividend. This is a boost from Open Text’s previous quarterly dividend of $0.25. The ex-dividend date is Friday, May 31st. This represents a $1.74 annualized dividend and a yield of 5.75%. Open Text’s dividend payout ratio is 161.29%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in OTEX. Forsta AP Fonden boosted its holdings in shares of Open Text by 10.4% in the third quarter. Forsta AP Fonden now owns 74,400 shares of the software maker’s stock valued at $2,623,000 after acquiring an additional 7,000 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in shares of Open Text by 13.4% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 323,885 shares of the software maker’s stock valued at $11,420,000 after acquiring an additional 38,366 shares in the last quarter. Inspire Investing LLC boosted its holdings in Open Text by 23.4% during the third quarter. Inspire Investing LLC now owns 17,568 shares of the software maker’s stock worth $617,000 after buying an additional 3,328 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its holdings in Open Text by 5.7% during the third quarter. Allspring Global Investments Holdings LLC now owns 118,617 shares of the software maker’s stock worth $4,164,000 after buying an additional 6,412 shares in the last quarter. Finally, CIBC Asset Management Inc boosted its holdings in Open Text by 0.6% during the third quarter. CIBC Asset Management Inc now owns 814,407 shares of the software maker’s stock worth $28,671,000 after buying an additional 5,037 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors.

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.