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

BMO Capital Markets cut shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from an outperform rating to a market perform rating in a research report released on Friday morning, MarketBeat.com reports. The firm currently has $38.00 target price on the software maker’s stock, down from their previous target price of $50.00.

Several other equities analysts have also weighed in on the stock. TD Securities lifted their target price on shares of Open Text from $53.00 to $54.00 and gave the company a buy rating in a report on Friday, February 2nd. StockNews.com upgraded shares of Open Text from a hold rating to a buy rating in a research report on Tuesday, February 6th. Jefferies Financial Group began coverage on Open Text in a research report on Tuesday, February 27th. They set a buy rating and a $45.00 target price on the stock. Royal Bank of Canada reaffirmed an outperform rating and issued a $53.00 price target on shares of Open Text in a report on Friday, February 2nd. Finally, Citigroup dropped their price objective on Open Text from $44.00 to $42.00 and set a neutral rating on the stock in a report on Friday, March 22nd. Six investment analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of Hold and an average target price of $42.25.

Open Text Price Performance

NASDAQ:OTEX opened at $30.25 on Friday. The firm’s fifty day moving average is $37.32 and its two-hundred day moving average is $38.77. The firm has a market cap of $8.25 billion, a price-to-earnings ratio of 48.79 and a beta of 1.11. 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 one year low of $28.19 and a one year high of $45.47.

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

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 18th. Stockholders of record on Friday, May 31st will be issued a dividend of $0.435 per share. This is a positive change from Open Text’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend is Friday, May 31st. This represents a $1.74 dividend on an annualized basis and a dividend yield of 5.75%. Open Text’s dividend payout ratio is presently 161.29%.

Hedge Funds Weigh In On Open Text

Hedge funds and other institutional investors have recently modified their holdings of the business. Optiver Holding B.V. acquired a new stake in Open Text in the 4th quarter valued at about $27,000. Pacifica Partners Inc. acquired a new stake in shares of Open Text in the fourth quarter valued at approximately $32,000. Allworth Financial LP lifted 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 buying an additional 533 shares in the last quarter. Assetmark Inc. acquired a new position in Open Text during the fourth quarter worth $48,000. Finally, EverSource Wealth Advisors LLC grew its holdings in Open Text by 18.0% in the 4th quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock valued at $92,000 after buying an additional 334 shares in the last quarter. 70.37% of the stock is owned by hedge funds and other 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.