Open Text (NASDAQ:OTEX) Upgraded at Zacks Research

Zacks Research upgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a strong sell rating to a hold rating in a report published on Monday morning,Zacks reports.

OTEX has been the topic of a number of other reports. Weiss Ratings reiterated a “hold (c-)” rating on shares of Open Text in a research note on Monday, September 21st. UBS Group raised their target price on Open Text from $25.00 to $27.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. Citigroup lifted their target price on Open Text from $25.00 to $28.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Scotia decreased their price target on Open Text from $40.00 to $33.00 and set a “sector outperform” rating on the stock in a research report on Friday, August 7th. Finally, Wall Street Zen raised shares of Open Text from a “hold” rating to a “buy” rating in a report on Saturday, September 5th. Three equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $30.95.

Open Text Stock Up 1.9%

OTEX opened at $23.14 on Monday. The company has a 50 day moving average of $23.90 and a 200 day moving average of $23.13. The company has a market cap of $5.60 billion, a PE ratio of 8.97 and a beta of 1.01. Open Text has a 12 month low of $19.77 and a 12 month high of $39.90. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.43.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.02 by $0.21. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The business had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.29 billion. During the same quarter in the previous year, the firm posted $0.97 EPS. The business’s revenue for the quarter was up 2.9% compared to the same quarter last year. On average, sell-side analysts expect that Open Text will post 3.72 EPS for the current year.

Open Text Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, September 4th were issued a dividend of $0.28 per share. The ex-dividend date of this dividend was Friday, September 4th. This is a positive change from Open Text’s previous quarterly dividend of $0.2750. This represents a $1.12 annualized dividend and a dividend yield of 4.8%. Open Text’s payout ratio is presently 43.41%.

Institutional Investors Weigh In On Open Text

Institutional investors and hedge funds have recently bought and sold shares of the stock. Royal Bank of Canada raised its position in shares of Open Text by 10.9% during the 1st quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker’s stock valued at $218,920,000 after buying an additional 965,385 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of Open Text by 99.1% during the 1st quarter. Bank of America Corp DE now owns 1,349,545 shares of the software maker’s stock worth $30,014,000 after acquiring an additional 671,572 shares during the last quarter. Quantinno Capital Management LP grew its position in Open Text by 109.8% in the first quarter. Quantinno Capital Management LP now owns 109,717 shares of the software maker’s stock worth $2,440,000 after acquiring an additional 57,432 shares in the last quarter. Brandes Investment Partners LP grew its position in Open Text by 1.2% in the fourth quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker’s stock worth $296,679,000 after acquiring an additional 106,766 shares in the last quarter. Finally, Sei Investments Co. increased its stake in Open Text by 47.3% in the first quarter. Sei Investments Co. now owns 255,601 shares of the software maker’s stock valued at $5,684,000 after acquiring an additional 82,049 shares during the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Company Profile

OpenText Corporation (NASDAQ: OTEX) is a Canadian enterprise software company that provides information management solutions for organizations worldwide. Its products help businesses create, capture, manage, secure, exchange and analyze content and data across digital operations.

The company’s portfolio includes enterprise content management, business process management, customer experience management, secure file transfer, cybersecurity, IT operations management, analytics and developer tools.