Open Text (NASDAQ:OTEX) Cut to “Buy” at Wall Street Zen

Wall Street Zen cut shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a strong-buy rating to a buy rating in a research note released on Tuesday.

A number of other equities research analysts have also weighed in on the company. Barclays lifted their target price on Open Text from $25.00 to $27.00 and gave the company an “equal weight” rating in a research report on Monday, May 11th. Scotia dropped their price target on Open Text from $50.00 to $40.00 and set a “sector outperform” rating on the stock in a research report on Friday, May 8th. Royal Bank Of Canada cut their price target on Open Text from $30.00 to $27.00 and set a “sector perform” rating on the stock in a research note on Friday, May 8th. UBS Group set a $25.00 price objective on Open Text in a report on Friday, May 8th. Finally, Scotiabank lowered their price objective on shares of Open Text from $50.00 to $40.00 and set a “sector outperform” rating for the company in a research note on Friday, May 8th. Four equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $33.67.

Open Text Trading Down 2.0%

Shares of OTEX opened at $25.36 on Tuesday. The firm has a market capitalization of $6.14 billion, a price-to-earnings ratio of 12.37 and a beta of 1.04. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.94 and a quick ratio of 0.94. Open Text has a 1-year low of $19.77 and a 1-year high of $39.90. The company has a 50-day moving average of $22.78 and a 200 day moving average of $23.82.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.07. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period last year, the company posted $0.82 earnings per share. The company’s quarterly revenue was up 2.2% compared to the same quarter last year. On average, research analysts expect that Open Text will post 4.05 EPS for the current year.

Open Text Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 19th. Stockholders of record on Friday, June 5th were given a $0.275 dividend. This represents a $1.10 annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend was Friday, June 5th. Open Text’s payout ratio is presently 53.66%.

Institutional Investors Weigh In On Open Text

A number of institutional investors have recently added to or reduced their stakes in OTEX. Goldman Sachs Group Inc. raised its stake in shares of Open Text by 75.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker’s stock worth $36,307,000 after acquiring an additional 619,527 shares in the last quarter. United Services Automobile Association acquired a new stake in Open Text in the first quarter valued at approximately $213,000. EverSource Wealth Advisors LLC boosted its stake in Open Text by 39.7% in the second quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock valued at $59,000 after acquiring an additional 570 shares in the last quarter. Cerity Partners LLC grew its holdings in Open Text by 3.4% in the second quarter. Cerity Partners LLC now owns 49,003 shares of the software maker’s stock worth $1,431,000 after purchasing an additional 1,612 shares during the last quarter. Finally, Qube Research & Technologies Ltd increased its position in shares of Open Text by 16.8% during the second quarter. Qube Research & Technologies Ltd now owns 46,500 shares of the software maker’s stock worth $1,360,000 after purchasing an additional 6,700 shares in the last quarter. Institutional investors 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.