Open Text (NASDAQ:OTEX) Upgraded at National Bank Financial

National Bank Financial upgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a sector perform rating to an outperform rating in a report published on Monday, MarketBeat Ratings reports. They currently have $45.00 price target on the software maker’s stock. National Bank Financial also issued estimates for Open Text’s FY2027 earnings at $4.22 EPS.

A number of other brokerages also recently weighed in on OTEX. Wall Street Zen raised shares of Open Text from a “hold” rating to a “buy” rating in a research note on Saturday, August 9th. Royal Bank Of Canada lifted their price target on shares of Open Text from $30.00 to $35.00 and gave the company a “sector perform” rating in a research note on Tuesday, September 2nd. Jefferies Financial Group downgraded shares of Open Text from a “buy” rating to a “hold” rating and set a $33.00 price target for the company. in a research note on Tuesday, August 12th. CIBC reaffirmed a “neutral” rating on shares of Open Text in a research note on Monday, August 11th. Finally, Scotiabank lifted their price target on shares of Open Text from $30.00 to $35.00 and gave the company a “sector perform” rating in a research note on Tuesday, August 12th. Four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $35.18.

Open Text Price Performance

Shares of NASDAQ:OTEX opened at $36.70 on Monday. The firm has a market cap of $9.33 billion, a PE ratio of 22.24 and a beta of 1.16. The firm’s fifty day moving average is $31.39 and its 200-day moving average is $28.54. The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.80 and a current ratio of 0.80. Open Text has a 52 week low of $22.79 and a 52 week high of $38.08.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share for the quarter, topping analysts’ consensus estimates of $0.86 by $0.11. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The business had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter last year, the firm earned $0.98 earnings per share. Open Text’s quarterly revenue was down 3.8% on a year-over-year basis. Sell-side analysts predict that Open Text will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, September 5th will be issued a dividend of $0.275 per share. This is an increase from Open Text’s previous quarterly dividend of $0.26. This represents a $1.10 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Friday, September 5th. Open Text’s dividend payout ratio is 66.67%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Versant Capital Management Inc purchased a new position in Open Text during the first quarter worth about $26,000. Sagard Holdings Management Inc. purchased a new position in Open Text during the second quarter worth about $30,000. MAI Capital Management boosted its holdings in Open Text by 58.7% during the second quarter. MAI Capital Management now owns 1,595 shares of the software maker’s stock worth $47,000 after purchasing an additional 590 shares during the last quarter. Cromwell Holdings LLC boosted its holdings in Open Text by 27.4% during the second quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker’s stock worth $48,000 after purchasing an additional 352 shares during the last quarter. Finally, WealthCollab LLC boosted its holdings in Open Text by 39.5% during the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock worth $48,000 after purchasing an additional 464 shares during the last quarter. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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.