Open Text (NASDAQ:OTEX) Upgraded at StockNews.com

StockNews.com upgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a strong-buy rating in a research note released on Sunday.

Other equities analysts have also issued reports about the company. BMO Capital Markets cut their target price on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a report on Friday, November 1st. TD Securities reduced their target price 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 target price on Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research report on Friday, November 1st. Barclays decreased their target price on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a research report on Friday, November 1st. Finally, UBS Group initiated coverage on Open Text in a research report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 target price for the company. Nine research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, Open Text has a consensus rating of “Hold” and a consensus price target of $35.27.

Open Text Trading Up 2.1 %

NASDAQ OTEX opened at $28.36 on Friday. Open Text has a 1-year low of $26.84 and a 1-year high of $45.47. 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 company has a market capitalization of $7.48 billion, a PE ratio of 16.39 and a beta of 1.12. The firm’s fifty day simple moving average is $28.99 and its 200-day simple moving average is $30.82.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, topping 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 business had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the prior year, the business posted $0.90 earnings per share. Open Text’s revenue for the quarter was down 11.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that Open Text will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, November 29th were issued a dividend of $0.262 per share. The ex-dividend date of this dividend was Friday, November 29th. This is a positive change from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.70%. Open Text’s payout ratio is 60.69%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Blue Trust Inc. raised its stake in shares of Open Text by 435.7% in the third quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock valued at $32,000 after purchasing an additional 793 shares in the last quarter. Kimelman & Baird LLC acquired a new position in shares of Open Text in the second quarter valued at $36,000. Cromwell Holdings LLC raised its stake in shares of Open Text by 29.6% in the third quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock valued at $55,000 after purchasing an additional 380 shares in the last quarter. Essex LLC acquired a new position in shares of Open Text in the third quarter valued at $210,000. Finally, Net Worth Advisory Group acquired a new position in shares of Open Text in the third quarter valued at $226,000. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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.