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

StockNews.com cut shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a hold rating in a research report sent to investors on Friday.

Other equities research analysts have also issued reports about the stock. Royal Bank of Canada reaffirmed an outperform rating and set a $53.00 price objective on shares of Open Text in a report on Friday, February 2nd. Jefferies Financial Group reduced their price target on shares of Open Text from $45.00 to $42.00 and set a buy rating on the stock in a report on Friday. Barclays cut their price objective on Open Text from $44.00 to $38.00 and set an equal weight rating for the company in a research report on Friday. BMO Capital Markets downgraded Open Text from an outperform rating to a market perform rating and decreased their target price for the stock from $50.00 to $38.00 in a research report on Friday. Finally, Citigroup reduced their price objective on Open Text from $42.00 to $37.00 and set a neutral rating on the stock in a research note on Friday. Six analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of Hold and an average price target of $42.25.

Open Text Trading Down 0.2 %

Shares of OTEX stock opened at $30.20 on Friday. The firm has a fifty day moving average price of $37.32 and a 200-day moving average price of $38.77. Open Text has a 1 year low of $28.19 and a 1 year high of $45.47. The company has a debt-to-equity ratio of 2.01, a current ratio of 1.40 and a quick ratio of 1.40. The company has a market cap of $8.24 billion, a price-to-earnings ratio of 48.79 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, February 1st. The software maker reported $1.11 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.01. The business had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.48 billion. Open Text had a net margin of 2.85% and a return on equity of 24.45%. As a group, equities analysts predict that Open Text will post 4.14 earnings per share for the current year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 18th. Investors of record on Friday, May 31st will be given a $0.435 dividend. The ex-dividend date of this dividend is Friday, May 31st. This is an increase from Open Text’s previous quarterly dividend of $0.25. This represents a $1.74 dividend on an annualized basis and a yield of 5.76%. Open Text’s dividend payout ratio (DPR) is currently 161.29%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Optiver Holding B.V. bought a new stake in shares of Open Text during the 4th quarter worth approximately $27,000. Pacifica Partners Inc. bought a new stake in shares of Open Text during the fourth quarter worth $32,000. Allworth Financial LP boosted its stake in shares of Open Text by 125.7% during the third quarter. Allworth Financial LP now owns 957 shares of the software maker’s stock valued at $34,000 after purchasing an additional 533 shares during the period. Assetmark Inc. purchased a new stake in Open Text in the 4th quarter valued at about $48,000. Finally, EverSource Wealth Advisors LLC grew its stake in Open Text by 18.0% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock worth $92,000 after purchasing an additional 334 shares in the last quarter. Institutional investors own 70.37% of the company’s stock.

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.