Open Text (NASDAQ:OTEX) Downgraded to Buy Rating by StockNews.com

Open Text (NASDAQ:OTEX) (TSE:OTC) was downgraded by equities research analysts at StockNews.com from a “strong-buy” rating to a “buy” rating in a research note issued on Monday.

Other analysts have also issued research reports about the company. BMO Capital Markets dropped their price objective on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research note on Friday, November 1st. TD Securities cut their price target on Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a report on Monday, December 30th. Scotiabank decreased their price objective on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a report on Friday, November 1st. Citigroup cut their target price on shares of Open Text from $33.00 to $30.00 and set a “neutral” rating for the company in a research note on Thursday, January 16th. Finally, UBS Group began coverage on shares of Open Text in a research note on Tuesday, December 17th. They issued a “neutral” rating and a $32.00 price target on the stock. Nine analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $35.27.

Open Text Price Performance

NASDAQ:OTEX opened at $29.45 on Monday. 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 firm has a fifty day simple moving average of $28.94 and a 200 day simple moving average of $30.71. Open Text has a 1-year low of $26.84 and a 1-year high of $45.47. The stock has a market capitalization of $7.77 billion, a PE ratio of 17.02 and a beta of 1.12.

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

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. AustralianSuper Pty Ltd acquired a new stake in Open Text in the third quarter valued at approximately $8,011,000. The Manufacturers Life Insurance Company boosted its holdings in shares of Open Text by 1.1% during the 3rd quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker’s stock valued at $187,952,000 after acquiring an additional 63,620 shares in the last quarter. Natixis Advisors LLC bought a new stake in Open Text during the 3rd quarter worth $1,467,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp raised its position in Open Text by 126.1% in the third quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 86,260 shares of the software maker’s stock valued at $2,871,000 after purchasing an additional 48,111 shares during the last quarter. Finally, Stifel Financial Corp acquired a new stake in shares of Open Text during the third quarter valued at about $2,232,000. 70.37% of the stock is owned by institutional investors.

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.