Open Text (NASDAQ:OTEX) Downgraded by Zacks Research to “Hold”

Zacks Research downgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a strong-buy rating to a hold rating in a research note published on Monday,Zacks.com reports.

OTEX has been the subject of a number of other research reports. Scotiabank upgraded shares of Open Text from a “sector perform” rating to an “outperform” rating and increased their price target for the company from $35.00 to $50.00 in a report on Wednesday, September 24th. Citigroup dropped their target price on shares of Open Text from $38.00 to $36.00 and set a “neutral” rating for the company in a report on Tuesday, December 23rd. Jefferies Financial Group boosted their price target on Open Text from $33.00 to $35.00 and gave the stock a “hold” rating in a research note on Thursday, November 6th. National Bank Financial raised Open Text from a “sector perform” rating to an “outperform” rating and set a $45.00 price objective for the company in a research note on Monday, September 15th. Finally, UBS Group lifted their price objective on Open Text from $32.00 to $38.00 and gave the stock a “neutral” rating in a report on Friday, November 7th. Three investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $39.25.

Open Text Stock Performance

NASDAQ OTEX opened at $32.09 on Monday. The stock has a market capitalization of $8.08 billion, a price-to-earnings ratio of 16.83 and a beta of 1.08. The business’s 50 day moving average is $34.01 and its two-hundred day moving average is $33.54. Open Text has a 12-month low of $22.79 and a 12-month high of $39.90. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.60.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings results on Wednesday, November 5th. The software maker reported $1.05 earnings per share for the quarter, beating analysts’ consensus estimates of $1.00 by $0.05. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.27 billion. Open Text had a return on equity of 23.44% and a net margin of 9.60%.The company’s revenue for the quarter was up 1.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.93 earnings per share. Research analysts expect that Open Text will post 3.45 EPS for the current year.

Open Text Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 19th. Investors of record on Friday, December 5th were paid a dividend of $0.275 per share. The ex-dividend date of this dividend was Friday, December 5th. This represents a $1.10 annualized dividend and a dividend yield of 3.4%. Open Text’s dividend payout ratio is presently 57.59%.

Institutional Trading of Open Text

Several hedge funds and other institutional investors have recently bought and sold shares of OTEX. Norges Bank acquired a new position in shares of Open Text during the 2nd quarter valued at about $98,882,000. Brandes Investment Partners LP increased its position in Open Text by 42.7% during the second quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker’s stock worth $244,356,000 after purchasing an additional 2,506,058 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its stake in Open Text by 456.0% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 2,312,755 shares of the software maker’s stock worth $86,429,000 after purchasing an additional 1,896,755 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Open Text by 48.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 2,592,578 shares of the software maker’s stock valued at $96,914,000 after purchasing an additional 851,303 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of Open Text by 11.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker’s stock valued at $225,898,000 after purchasing an additional 810,352 shares during the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Company Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.