Open Text (NASDAQ:OTEX) Shares Gap Down Following Analyst Downgrade

Open Text Co. (NASDAQ:OTEX) (TSE:OTC)’s stock price gapped down before the market opened on Friday after StockNews.com downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $35.47, but opened at $30.44. Open Text shares last traded at $29.86, with a volume of 1,249,416 shares traded.

Several other brokerages also recently issued reports on OTEX. Citigroup lowered their price objective on shares of Open Text from $42.00 to $37.00 and set a “neutral” rating on the stock in a research report on Friday. TD Securities lowered their price objective on shares of Open Text from $54.00 to $40.00 and set a “buy” rating on the stock in a research report on Friday. BMO Capital Markets downgraded shares of Open Text from an “outperform” rating to a “market perform” rating and lowered their price objective for the stock from $50.00 to $38.00 in a research report on Friday. National Bankshares lowered their target price on shares of Open Text from $60.00 to $50.00 and set an “outperform” rating on the stock in a report on Friday. Finally, Jefferies Financial Group lowered their target price on shares of Open Text from $45.00 to $42.00 and set a “buy” rating on the stock in a report on Friday. Six investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat.com, Open Text has an average rating of “Hold” and an average target price of $42.25.

Hedge Funds Weigh In On Open Text

A number of institutional investors have recently modified their holdings of OTEX. Optiver Holding B.V. acquired a new position in shares of Open Text in the fourth quarter valued at approximately $27,000. Pacifica Partners Inc. acquired a new position in Open Text during the fourth quarter worth approximately $32,000. Allworth Financial LP increased its position in Open Text by 125.7% during the third quarter. Allworth Financial LP now owns 957 shares of the software maker’s stock worth $34,000 after purchasing an additional 533 shares during the last quarter. Assetmark Inc. acquired a new position in Open Text during the fourth quarter worth approximately $48,000. Finally, EverSource Wealth Advisors LLC increased its position in Open Text by 18.0% during the fourth quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock worth $92,000 after purchasing an additional 334 shares during the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Stock Down 14.7 %

The company has a debt-to-equity ratio of 2.10, a current ratio of 1.38 and a quick ratio of 1.38. The firm’s 50-day moving average is $37.32 and its 200 day moving average is $38.70. The stock has a market cap of $8.25 billion, a price-to-earnings ratio of 64.36 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.10 by $0.01. Open Text had a net margin of 2.24% and a return on equity of 22.99%. The company had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.48 billion. Sell-side analysts anticipate that Open Text Co. will post 4.14 earnings per share for the current fiscal year.

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.