Citigroup Cuts Open Text (NASDAQ:OTEX) Price Target to $36.00

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target reduced by Citigroup from $38.00 to $36.00 in a research report sent to investors on Tuesday morning,Benzinga reports. Citigroup currently has a neutral rating on the software maker’s stock.

OTEX has been the subject of several other reports. Scotiabank raised shares of Open Text from a “sector perform” rating to an “outperform” rating and increased their price target for the stock from $35.00 to $50.00 in a report on Wednesday, September 24th. TD Cowen reiterated a “hold” rating and set a $40.00 target price on shares of Open Text in a research report on Friday, October 3rd. Weiss Ratings reissued a “hold (c+)” rating on shares of Open Text in a report on Monday, December 15th. Zacks Research upgraded Open Text from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, November 12th. Finally, TD Securities lowered Open Text from a “buy” rating to a “hold” rating and upped their price objective for the stock from $35.00 to $40.00 in a report on Friday, October 3rd. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, Open Text currently has an average rating of “Hold” and a consensus price target of $39.25.

Open Text Price Performance

Open Text stock opened at $33.34 on Tuesday. The company has a debt-to-equity ratio of 1.60, a current ratio of 0.87 and a quick ratio of 0.87. The business has a 50 day simple moving average of $35.07 and a 200-day simple moving average of $33.24. Open Text has a 12 month low of $22.79 and a 12 month high of $39.90. The stock has a market capitalization of $8.40 billion, a PE ratio of 17.45 and a beta of 1.08.

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

Open Text Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, December 19th. Investors of record on Friday, December 5th were given a $0.275 dividend. The ex-dividend date was Friday, December 5th. This represents a $1.10 annualized dividend and a dividend yield of 3.3%. Open Text’s payout ratio is currently 57.59%.

Hedge Funds Weigh In On Open Text

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Cromwell Holdings LLC lifted its holdings in shares of Open Text by 27.4% in the second quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker’s stock valued at $48,000 after purchasing an additional 352 shares in the last quarter. Oppenheimer Asset Management Inc. raised its position in shares of Open Text by 2.9% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 13,174 shares of the software maker’s stock worth $385,000 after purchasing an additional 370 shares during the last quarter. Tidal Investments LLC lifted its stake in Open Text by 2.6% in the 2nd quarter. Tidal Investments LLC now owns 18,059 shares of the software maker’s stock valued at $527,000 after buying an additional 460 shares in the last quarter. WealthCollab LLC grew its holdings in Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock valued at $48,000 after buying an additional 464 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in Open Text by 39.7% during the second quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock worth $59,000 after buying an additional 570 shares in the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

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.