Citigroup Cuts Open Text (NASDAQ:OTEX) Price Target to $30.00

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price objective lowered by Citigroup from $33.00 to $30.00 in a report published on Thursday,Benzinga reports. Citigroup currently has a neutral rating on the software maker’s stock.

A number of other research analysts also recently issued reports on the company. BMO Capital Markets decreased their price objective on Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st. Barclays lowered their price objective on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a report on Friday, November 1st. TD Securities decreased their target price on shares of Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a research report on Monday, December 30th. StockNews.com cut shares of Open Text from a “strong-buy” rating to a “buy” rating in a research report on Saturday, January 11th. Finally, UBS Group assumed coverage on Open Text in a research report on Tuesday, December 17th. They issued a “neutral” rating and a $32.00 target price on the stock. Nine equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $35.27.

Open Text Stock Down 1.2 %

Shares of NASDAQ:OTEX opened at $27.78 on Thursday. The company has a 50 day moving average price of $29.03 and a two-hundred day moving average price of $30.84. The company has a market capitalization of $7.35 billion, a PE ratio of 16.06 and a beta of 1.12. Open Text has a 52 week low of $26.84 and a 52 week high of $45.47. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.13. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The firm had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same period in the previous year, the company posted $0.90 earnings per share. The company’s revenue for the quarter was down 11.0% on a year-over-year basis. Analysts forecast that Open Text will post 3.37 earnings per share for the current year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 20th. Shareholders of record on Friday, November 29th were given a dividend of $0.262 per share. This represents a $1.05 dividend on an annualized basis and a yield of 3.77%. This is a boost from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Friday, November 29th. Open Text’s payout ratio is 60.69%.

Hedge Funds Weigh In On Open Text

Several large investors have recently modified their holdings of the stock. Blue Trust Inc. lifted its position in Open Text by 435.7% during the third quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock worth $32,000 after acquiring an additional 793 shares during the last quarter. Kimelman & Baird LLC acquired a new stake in Open Text during the 2nd quarter worth approximately $36,000. Cromwell Holdings LLC boosted its stake in Open Text by 29.6% in the 3rd quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock valued at $55,000 after purchasing an additional 380 shares during the period. Essex LLC acquired a new position in Open Text in the 3rd quarter valued at $210,000. Finally, Net Worth Advisory Group bought a new position in Open Text during the 3rd quarter worth $226,000. 70.37% of the stock is 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.