TD Securities Lowers Open Text (NASDAQ:OTEX) Price Target to $40.00

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target dropped by analysts at TD Securities from $54.00 to $40.00 in a note issued to investors on Friday, BayStreet.CA reports. The brokerage presently has a “buy” rating on the software maker’s stock. TD Securities’ target price would indicate a potential upside of 32.23% from the stock’s current price.

Several other equities analysts have also weighed in on OTEX. CIBC increased their price target on shares of Open Text from $42.00 to $44.00 and gave the company a “neutral” rating in a research report on Thursday, January 11th. Citigroup lowered their price target on shares of Open Text from $42.00 to $37.00 and set a “neutral” rating on the stock in a report on Friday. Jefferies Financial Group began coverage on Open Text in a report on Tuesday, February 27th. They set a “buy” rating and a $45.00 price objective for the company. BMO Capital Markets lowered Open Text from an “outperform” rating to a “market perform” rating and lowered their target price for the company from $50.00 to $38.00 in a research note on Friday. Finally, Royal Bank of Canada reissued an “outperform” rating and issued a $53.00 price objective on shares of Open Text in a report on Friday, February 2nd. Five investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, Open Text has an average rating of “Moderate Buy” and a consensus price target of $42.25.

Open Text Stock Performance

Shares of Open Text stock traded down $5.22 during mid-day trading on Friday, hitting $30.25. 3,705,104 shares of the stock were exchanged, compared to its average volume of 643,007. The company has a market capitalization of $8.25 billion, a P/E ratio of 63.85 and a beta of 1.11. The company has a debt-to-equity ratio of 2.10, a quick ratio of 1.38 and a current ratio of 1.38. The company has a 50-day simple moving average of $37.48 and a 200 day simple moving average of $38.73. Open Text has a 12 month low of $28.19 and a 12 month high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, February 1st. The software maker reported $1.11 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.01. Open Text had a return on equity of 22.99% and a net margin of 2.24%. The business had revenue of $1.53 billion for the quarter, compared to analysts’ expectations of $1.48 billion. Sell-side analysts anticipate that Open Text will post 4.14 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Open Text

A number of institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in Open Text by 1.6% in the 3rd quarter. Vanguard Group Inc. now owns 10,086,008 shares of the software maker’s stock worth $354,019,000 after buying an additional 154,240 shares in the last quarter. Qube Research & Technologies Ltd bought a new position in Open Text in the third quarter valued at $2,630,000. Vontobel Holding Ltd. raised its position in Open Text by 182.1% during the fourth quarter. Vontobel Holding Ltd. now owns 37,176 shares of the software maker’s stock valued at $1,563,000 after purchasing an additional 24,000 shares in the last quarter. Value Partners Investments Inc. lifted its stake in Open Text by 16.3% during the fourth quarter. Value Partners Investments Inc. now owns 2,046,243 shares of the software maker’s stock worth $85,983,000 after purchasing an additional 286,766 shares during the last quarter. Finally, Canada Pension Plan Investment Board boosted its holdings in shares of Open Text by 7.1% in the 3rd quarter. Canada Pension Plan Investment Board now owns 837,880 shares of the software maker’s stock worth $29,543,000 after purchasing an additional 55,360 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors.

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.