Open Text (NASDAQ:OTEX) Given Sector Perform Rating at Scotiabank

Scotiabank reaffirmed their sector perform rating on shares of Open Text (NASDAQ:OTEX) (TSE:OTC) in a report published on Friday morning, Benzinga reports.

Several other research firms also recently commented on OTEX. BMO Capital Markets downgraded shares of Open Text from an outperform rating to a market perform rating and lowered their target price for the stock from $50.00 to $38.00 in a report on Friday. National Bankshares reduced their price objective on Open Text from $60.00 to $50.00 and set an outperform rating on the stock in a research note on Friday. TD Securities lowered their target price on Open Text from $54.00 to $40.00 and set a buy rating for the company in a research report on Friday. Jefferies Financial Group dropped their price target on Open Text from $45.00 to $42.00 and set a buy rating for the company in a research report on Friday. Finally, Raymond James cut their price objective on shares of Open Text from $55.00 to $48.00 and set an outperform rating on the stock in a research report on Friday. Seven research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of Hold and an average target price of $42.25.

Open Text Stock Performance

Shares of NASDAQ:OTEX traded down $0.03 during midday trading on Friday, hitting $30.22. The company had a trading volume of 1,477,069 shares, compared to its average volume of 652,609. The company has a market cap of $8.25 billion, a price-to-earnings ratio of 48.63 and a beta of 1.11. The company has a debt-to-equity ratio of 2.01, a current ratio of 1.40 and a quick ratio of 1.40. The company has a fifty day moving average of $37.32 and a two-hundred day moving average of $38.77. Open Text has a 12-month low of $28.19 and a 12-month high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.10 by $0.01. Open Text had a net margin of 2.85% and a return on equity of 24.45%. The firm had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.48 billion. On average, equities research analysts expect that Open Text will post 4.14 EPS for the current fiscal year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 18th. Shareholders of record on Friday, May 31st will be given a dividend of $0.435 per share. This is an increase from Open Text’s previous quarterly dividend of $0.25. The ex-dividend date is Friday, May 31st. This represents a $1.74 dividend on an annualized basis and a yield of 5.76%. Open Text’s dividend payout ratio (DPR) is 161.29%.

Hedge Funds Weigh In On Open Text

Hedge funds and other institutional investors have recently modified their holdings of the business. Essex LLC purchased a new stake in Open Text during the first quarter worth $250,000. Easterly Investment Partners LLC raised its position in shares of Open Text by 1.7% in the first quarter. Easterly Investment Partners LLC now owns 334,221 shares of the software maker’s stock worth $12,978,000 after acquiring an additional 5,657 shares during the period. Lorne Steinberg Wealth Management Inc. boosted its position in Open Text by 1.9% during the first quarter. Lorne Steinberg Wealth Management Inc. now owns 119,990 shares of the software maker’s stock worth $4,657,000 after purchasing an additional 2,275 shares in the last quarter. Chase Investment Counsel Corp lifted its position in shares of Open Text by 6.9% during the 1st quarter. Chase Investment Counsel Corp now owns 8,232 shares of the software maker’s stock valued at $319,000 after buying an additional 528 shares in the last quarter. Finally, Tobam boosted its holdings in Open Text by 102.3% in the 1st quarter. Tobam now owns 6,474 shares of the software maker’s stock worth $251,000 after buying an additional 3,274 shares during the last quarter. 70.37% of the stock is currently 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.