Open Text (NASDAQ:OTEX) Downgraded by StockNews.com to “Hold”

StockNews.com cut shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a hold rating in a research report released on Monday.

OTEX has been the subject of a number of other reports. CIBC decreased their price objective on Open Text from $33.00 to $31.00 and set a “neutral” rating for the company in a report on Friday. Scotiabank decreased their price target on shares of Open Text from $35.00 to $30.00 and set a “sector perform” rating for the company in a research note on Monday, April 28th. Citigroup boosted their price objective on shares of Open Text from $29.00 to $43.00 and gave the stock a “negative” rating in a research report on Friday. National Bankshares decreased their price target on Open Text from $38.00 to $34.00 and set a “sector perform” rating for the company in a research note on Friday, April 25th. Finally, BMO Capital Markets dropped their price objective on Open Text from $30.00 to $28.00 and set a “market perform” rating on the stock in a research note on Friday. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $32.30.

Open Text Price Performance

OTEX opened at $26.82 on Monday. Open Text has a 12 month low of $22.79 and a 12 month high of $34.20. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 1.50. The stock has a market cap of $6.96 billion, a P/E ratio of 10.90 and a beta of 1.13. The company has a fifty day simple moving average of $25.73 and a 200 day simple moving average of $28.02.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Wednesday, April 30th. The software maker reported $0.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.01. The company had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.28 billion. Open Text had a net margin of 12.21% and a return on equity of 23.23%. The firm’s revenue was down 13.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.94 earnings per share. On average, research analysts expect that Open Text will post 3.45 EPS for the current year.

Open Text Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 20th. Shareholders of record on Friday, June 6th will be issued a dividend of $0.2625 per share. This represents a $1.05 annualized dividend and a yield of 3.91%. The ex-dividend date is Friday, June 6th. Open Text’s dividend payout ratio is 42.68%.

Hedge Funds Weigh In On Open Text

Several large investors have recently modified their holdings of OTEX. Wilmington Savings Fund Society FSB bought a new position in Open Text in the 3rd quarter valued at about $499,000. Franklin Resources Inc. lifted its holdings in Open Text by 19.9% during the 3rd quarter. Franklin Resources Inc. now owns 205,891 shares of the software maker’s stock worth $7,086,000 after purchasing an additional 34,135 shares during the last quarter. Assenagon Asset Management S.A. boosted its stake in Open Text by 5.6% in the 4th quarter. Assenagon Asset Management S.A. now owns 19,921 shares of the software maker’s stock valued at $563,000 after purchasing an additional 1,049 shares during the period. Wedge Capital Management L L P NC acquired a new position in Open Text in the 4th quarter valued at $2,372,000. Finally, Canoe Financial LP increased its position in Open Text by 127.3% during the 4th quarter. Canoe Financial LP now owns 150,000 shares of the software maker’s stock worth $4,242,000 after buying an additional 84,000 shares during the period. 70.37% of the stock is owned by institutional investors.

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.