StockNews.com Downgrades Open Text (NASDAQ:OTEX) to Buy

Open Text (NASDAQ:OTEX) (TSE:OTC) was downgraded by equities researchers at StockNews.com from a “strong-buy” rating to a “buy” rating in a research report issued to clients and investors on Monday.

OTEX has been the subject of several other research reports. Citigroup lowered their price target on shares of Open Text from $33.00 to $30.00 and set a “neutral” rating for the company in a research report on Thursday, January 16th. Royal Bank of Canada lowered shares of Open Text from an “outperform” rating to a “sector perform” rating and lowered their target price for the stock from $45.00 to $33.00 in a report on Friday, November 1st. Scotiabank cut their price target on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research note on Friday, November 1st. UBS Group started coverage on Open Text in a research note on Tuesday, December 17th. They set a “neutral” rating and a $32.00 price objective for the company. Finally, 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 research note on Friday, November 1st. Nine research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $35.27.

Open Text Stock Performance

OTEX stock opened at $29.45 on Monday. The stock has a market capitalization of $7.77 billion, a PE ratio of 17.02 and a beta of 1.12. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.79 and a quick ratio of 0.79. The company has a 50 day moving average price of $28.94 and a 200 day moving average price of $30.71. Open Text has a fifty-two week low of $26.84 and a fifty-two week high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.80 by $0.13. The business had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.28 billion. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The firm’s revenue for the quarter was down 11.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.90 earnings per share. Analysts forecast that Open Text will post 3.37 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in OTEX. Brandes Investment Partners LP lifted its position in Open Text by 236.8% in the 2nd quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock valued at $55,059,000 after acquiring an additional 1,290,011 shares in the last quarter. Toronto Dominion Bank lifted its holdings in shares of Open Text by 169.6% in the third quarter. Toronto Dominion Bank now owns 576,105 shares of the software maker’s stock valued at $19,173,000 after purchasing an additional 362,422 shares in the last quarter. Crossmark Global Holdings Inc. boosted its position in shares of Open Text by 1,290.4% during the third quarter. Crossmark Global Holdings Inc. now owns 336,790 shares of the software maker’s stock worth $11,209,000 after buying an additional 312,567 shares during the period. AustralianSuper Pty Ltd acquired a new position in shares of Open Text during the third quarter worth about $8,011,000. Finally, Access Investment Management LLC bought a new position in shares of Open Text during the third quarter worth about $6,509,000. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Company Profile

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.