Open Text (NASDAQ:OTEX) Cut to “Hold” at TD Securities

TD Securities cut shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a hold rating in a research note issued to investors on Friday, Marketbeat reports. The firm currently has $40.00 price target on the software maker’s stock, up from their previous price target of $35.00.

Several other analysts have also issued reports on OTEX. Jefferies Financial Group lowered Open Text from a “buy” rating to a “hold” rating and set a $33.00 price objective for the company. in a report on Tuesday, August 12th. Scotiabank raised Open Text from a “sector perform” rating to an “outperform” rating and raised their price target for the stock from $35.00 to $50.00 in a research note on Wednesday, September 24th. Royal Bank Of Canada lifted their target price on shares of Open Text from $30.00 to $35.00 and gave the company a “sector perform” rating in a research note on Tuesday, September 2nd. CIBC restated a “neutral” rating on shares of Open Text in a research note on Monday, August 11th. Finally, Barclays reaffirmed a “positive” rating on shares of Open Text in a research note on Friday, August 8th. Four equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Open Text presently has an average rating of “Hold” and a consensus price target of $37.25.

Open Text Stock Performance

OTEX stock opened at $37.94 on Friday. The firm has a 50 day simple moving average of $33.41 and a 200 day simple moving average of $29.56. Open Text has a 52 week low of $22.79 and a 52 week high of $39.04. The stock has a market cap of $9.60 billion, a P/E ratio of 22.99 and a beta of 1.17. The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.80 and a current ratio of 0.80.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, August 7th. The software maker reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.11. The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.30 billion. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The company’s revenue for the quarter was down 3.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.98 EPS. Research analysts anticipate that Open Text will post 3.45 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 19th. Shareholders of record on Friday, September 5th were issued a dividend of $0.275 per share. The ex-dividend date of this dividend was Friday, September 5th. This is a positive change from Open Text’s previous quarterly dividend of $0.26. This represents a $1.10 dividend on an annualized basis and a yield of 2.9%. Open Text’s dividend payout ratio (DPR) is presently 66.67%.

Hedge Funds Weigh In On Open Text

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Plato Investment Management Ltd grew its position in Open Text by 926.0% in the first quarter. Plato Investment Management Ltd now owns 49,999 shares of the software maker’s stock valued at $1,276,000 after acquiring an additional 45,126 shares during the period. Korea Investment CORP boosted its stake in shares of Open Text by 107.7% in the 1st quarter. Korea Investment CORP now owns 188,444 shares of the software maker’s stock valued at $4,755,000 after purchasing an additional 97,700 shares in the last quarter. Parallel Advisors LLC boosted its stake in shares of Open Text by 219.3% in the 1st quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker’s stock valued at $49,000 after purchasing an additional 1,331 shares in the last quarter. Allspring Global Investments Holdings LLC grew its holdings in shares of Open Text by 12.7% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 187,565 shares of the software maker’s stock worth $4,735,000 after purchasing an additional 21,089 shares during the last quarter. Finally, Value Partners Investments Inc. increased its position in shares of Open Text by 9.8% during the 2nd quarter. Value Partners Investments Inc. now owns 2,561,601 shares of the software maker’s stock worth $74,709,000 after purchasing an additional 228,062 shares in the last quarter. Institutional investors own 70.37% of the company’s stock.

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.