Open Text (NASDAQ:OTEX) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a hold rating in a research report report published on Saturday.

Several other research firms have also commented on OTEX. Barclays upped their target price on Open Text from $25.00 to $27.00 and gave the company an “equal weight” rating in a report on Monday, May 11th. Scotiabank cut their price target on Open Text from $40.00 to $33.00 and set a “sector outperform” rating on the stock in a report on Friday. Raymond James Financial lowered Open Text from an “outperform” rating to a “market perform” rating and reduced their price objective for the company from $35.00 to $29.50 in a research report on Thursday. National Bank Financial lowered their price objective on Open Text from $45.00 to $33.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Open Text in a research report on Wednesday, June 24th. Three investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $32.46.

Open Text Trading Down 0.9%

NASDAQ OTEX opened at $24.72 on Friday. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.81 and a current ratio of 0.81. Open Text has a one year low of $19.77 and a one year high of $39.90. The company has a 50-day simple moving average of $23.04 and a 200-day simple moving average of $23.54. The firm has a market capitalization of $5.99 billion, a PE ratio of 9.58 and a beta of 1.03.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.21. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the prior year, the business earned $0.97 earnings per share. Open Text’s quarterly revenue was up 2.9% on a year-over-year basis. On average, equities analysts forecast that Open Text will post 4.32 earnings per share for the current year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, September 4th will be given a $0.28 dividend. This is a positive change from Open Text’s previous quarterly dividend of $0.28. The ex-dividend date is Friday, September 4th. This represents a $1.12 annualized dividend and a yield of 4.5%. Open Text’s payout ratio is currently 42.64%.

Institutional Investors Weigh In On Open Text

Hedge funds have recently made changes to their positions in the business. Tidal Investments LLC increased its position in shares of Open Text by 2.6% during the 2nd quarter. Tidal Investments LLC now owns 18,059 shares of the software maker’s stock valued at $527,000 after purchasing an additional 460 shares during the period. WealthCollab LLC lifted its holdings in shares of Open Text by 39.5% in the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock valued at $48,000 after buying an additional 464 shares during the period. Byrne Asset Management LLC lifted its holdings in shares of Open Text by 11.5% in the second quarter. Byrne Asset Management LLC now owns 4,837 shares of the software maker’s stock valued at $107,000 after buying an additional 500 shares during the period. Vident Advisory LLC boosted its stake in Open Text by 3.7% during the fourth quarter. Vident Advisory LLC now owns 15,715 shares of the software maker’s stock valued at $512,000 after buying an additional 555 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in Open Text by 39.7% during the second quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock valued at $59,000 after buying an additional 570 shares in the last quarter. Institutional investors own 70.37% of the company’s stock.

Open Text Company Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.