Open Text (NASDAQ:OTEX) Coverage Initiated at UBS Group

UBS Group started coverage on shares of Open Text (NASDAQ:OTEX) (TSE:OTC) in a research note issued to investors on Tuesday morning, MarketBeat.com reports. The firm issued a neutral rating and a $32.00 target price on the software maker’s stock.

A number of other analysts have also commented on the company. Barclays decreased their target price on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a research report on Friday, November 1st. Royal Bank of Canada cut shares of Open Text from an “outperform” rating to a “sector perform” rating and dropped their price target for the company from $45.00 to $33.00 in a research report on Friday, November 1st. Scotiabank decreased their price objective on Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a report on Friday, November 1st. BMO Capital Markets decreased their price target on Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st. Finally, Citigroup reduced their price objective on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a research report on Friday, November 1st. Nine equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, Open Text presently has a consensus rating of “Hold” and an average target price of $35.55.

Open Text Trading Up 0.2 %

Shares of OTEX stock opened at $27.42 on Tuesday. The stock has a market cap of $7.29 billion, a P/E ratio of 15.85 and a beta of 1.11. Open Text has a 1 year low of $27.20 and a 1 year high of $45.47. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. The stock has a 50 day simple moving average of $30.76 and a 200 day simple moving average of $30.97.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 EPS for the quarter, topping analysts’ consensus estimates of $0.80 by $0.13. The company had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.28 billion. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The firm’s quarterly revenue was down 11.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.90 earnings per share. On average, research analysts predict that Open Text will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Stockholders of record on Friday, November 29th will be given a dividend of $0.262 per share. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.82%. The ex-dividend date is Friday, November 29th. This is a boost from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio is currently 60.69%.

Institutional Investors Weigh In On Open Text

Several large investors have recently added to or reduced their stakes in OTEX. JARISLOWSKY FRASER Ltd boosted its position in Open Text by 5.1% during the second quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock worth $471,415,000 after purchasing an additional 767,822 shares during the period. The Manufacturers Life Insurance Company boosted its holdings in Open Text by 1.1% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker’s stock worth $187,952,000 after buying an additional 63,620 shares during the period. Cooke & Bieler LP grew its stake in Open Text by 18.6% in the 2nd quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock valued at $166,325,000 after buying an additional 867,978 shares in the last quarter. National Bank of Canada FI raised its holdings in Open Text by 1.1% during the 3rd quarter. National Bank of Canada FI now owns 4,068,116 shares of the software maker’s stock valued at $135,399,000 after acquiring an additional 46,223 shares during the period. Finally, Letko Brosseau & Associates Inc. lifted its position in shares of Open Text by 16.8% during the second quarter. Letko Brosseau & Associates Inc. now owns 3,929,040 shares of the software maker’s stock worth $117,956,000 after acquiring an additional 566,150 shares in the last quarter. Hedge funds and other institutional investors own 70.37% of the company’s stock.

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.