Open Text (NASDAQ:OTEX) Upgraded at StockNews.com

StockNews.com upgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a strong-buy rating in a research report released on Friday morning.

Other analysts have also recently issued reports about the company. BMO Capital Markets dropped their price target on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research report on Friday, November 1st. Barclays dropped their price target on Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a research report on Friday, November 1st. Scotiabank dropped their price target on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research report on Friday, November 1st. Royal Bank of Canada cut Open Text from an “outperform” rating to a “sector perform” rating and dropped their price target for the stock from $45.00 to $33.00 in a research report on Friday, November 1st. Finally, TD Securities decreased their price objective on shares of Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a report on Monday, December 30th. Nine analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Open Text currently has a consensus rating of “Hold” and a consensus price target of $35.55.

Open Text Stock Performance

Open Text stock opened at $28.57 on Friday. The stock’s 50 day simple moving average is $29.57 and its two-hundred day simple moving average is $30.97. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79. The stock has a market cap of $7.56 billion, a price-to-earnings ratio of 16.51 and a beta of 1.12. Open Text has a fifty-two week low of $27.05 and a fifty-two week high of $45.47.

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

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, December 20th. Shareholders of record on Friday, November 29th were paid a dividend of $0.262 per share. The ex-dividend date of this dividend was Friday, November 29th. This is a positive change from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 dividend on an annualized basis and a yield of 3.67%. Open Text’s payout ratio is currently 60.69%.

Institutional Investors Weigh In On Open Text

A number of hedge funds have recently added to or reduced their stakes in the stock. Brandes Investment Partners LP increased its stake in shares of Open Text by 236.8% in the 2nd quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock worth $55,059,000 after purchasing an additional 1,290,011 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of Open Text by 25.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock worth $167,277,000 after purchasing an additional 1,118,479 shares in the last quarter. JARISLOWSKY FRASER Ltd increased its stake in shares of Open Text by 5.1% in the 2nd 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 in the last quarter. Letko Brosseau & Associates Inc. increased its stake in shares of Open Text by 16.8% in the 2nd quarter. Letko Brosseau & Associates Inc. now owns 3,929,040 shares of the software maker’s stock worth $117,956,000 after purchasing an additional 566,150 shares in the last quarter. Finally, Toronto Dominion Bank increased its stake in shares of Open Text by 169.6% in the 3rd quarter. Toronto Dominion Bank now owns 576,105 shares of the software maker’s stock worth $19,173,000 after purchasing an additional 362,422 shares in the last quarter. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

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.