Open Text (NASDAQ:OTEX) Stock Moved Up to Hold by Zacks Research

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

Several other research analysts have also recently weighed in on OTEX. Scotiabank reduced their price objective on Open Text from $40.00 to $33.00 and set a “sector outperform” rating for the company in a research report on Friday, August 7th. Raymond James Financial cut shares of Open Text from an “outperform” rating to a “market perform” rating and decreased their price target for the stock from $35.00 to $29.50 in a research note on Thursday, August 6th. Citigroup lifted their price objective on shares of Open Text from $25.00 to $28.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Scotia reduced their target price on shares of Open Text from $40.00 to $33.00 and set a “sector outperform” rating for the company in a report on Friday, August 7th. Finally, Wall Street Zen raised shares of Open Text from a “hold” rating to a “buy” rating in a research report on Saturday, September 5th. Three investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $30.95.

Open Text Stock Up 0.9%

Open Text stock opened at $22.71 on Monday. The company has a 50 day moving average of $23.96 and a 200-day moving average of $23.13. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.43. Open Text has a twelve month low of $19.77 and a twelve month high of $39.90. The stock has a market capitalization of $5.49 billion, a PE ratio of 8.80 and a beta of 1.01.

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

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Friday, September 4th were paid a dividend of $0.28 per share. The ex-dividend date was Friday, September 4th. This is a boost from Open Text’s previous quarterly dividend of $0.2750. This represents a $1.12 annualized dividend and a yield of 4.9%. Open Text’s dividend payout ratio is currently 43.41%.

Hedge Funds Weigh In On Open Text

Several hedge funds and other institutional investors have recently modified their holdings of the business. Royal Bank of Canada boosted its holdings in shares of Open Text by 10.9% in the 1st quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker’s stock worth $218,920,000 after buying an additional 965,385 shares during the last quarter. Bank of America Corp DE raised its position in shares of Open Text by 99.1% in the first quarter. Bank of America Corp DE now owns 1,349,545 shares of the software maker’s stock valued at $30,014,000 after purchasing an additional 671,572 shares during the period. Quantinno Capital Management LP lifted its stake in shares of Open Text by 109.8% during the 1st quarter. Quantinno Capital Management LP now owns 109,717 shares of the software maker’s stock valued at $2,440,000 after buying an additional 57,432 shares in the last quarter. Brandes Investment Partners LP boosted its holdings in Open Text by 1.2% in the 4th quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker’s stock worth $296,679,000 after buying an additional 106,766 shares during the period. Finally, Sei Investments Co. boosted its holdings in Open Text by 47.3% in the 1st quarter. Sei Investments Co. now owns 255,601 shares of the software maker’s stock worth $5,684,000 after buying an additional 82,049 shares during the period. Institutional investors own 70.37% of the company’s stock.

About Open Text

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.