CIBC Cuts Open Text (NASDAQ:OTEX) Price Target to $38.50

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target lowered by CIBC from $44.00 to $38.50 in a research note issued to investors on Friday, BayStreet.CA reports. CIBC currently has a neutral rating on the software maker’s stock.

Several other equities analysts have also commented on the stock. Jefferies Financial Group began coverage on shares of Open Text in a research report on Tuesday, February 27th. They set a buy rating and a $45.00 price target for the company. Citigroup reduced their price objective on shares of Open Text from $42.00 to $37.00 and set a neutral rating for the company in a report on Friday. StockNews.com raised shares of Open Text from a hold rating to a buy rating in a research note on Tuesday, February 6th. National Bankshares lowered their price target on Open Text from $60.00 to $50.00 and set an outperform rating on the stock in a research report on Friday. Finally, BMO Capital Markets lowered Open Text from an outperform rating to a market perform rating and lowered their target price for the stock from $50.00 to $38.00 in a report on Friday. Seven research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of Hold and an average target price of $42.25.

Open Text Stock Performance

Shares of NASDAQ:OTEX traded down $0.03 during trading on Friday, reaching $30.22. 1,477,069 shares of the company’s stock traded hands, compared to its average volume of 652,609. 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 50 day moving average of $37.32 and a 200-day moving average of $38.77. Open Text has a 12 month low of $28.19 and a 12 month high of $45.47. The stock has a market capitalization of $8.25 billion, a P/E ratio of 48.63 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings results on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.10 by $0.01. Open Text had a return on equity of 24.45% and a net margin of 2.85%. The business had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.48 billion. On average, equities analysts expect that Open Text will post 4.14 EPS 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 issued a dividend of $0.435 per share. This is a boost from Open Text’s previous quarterly dividend of $0.25. This represents a $1.74 annualized dividend and a dividend yield of 5.76%. The ex-dividend date is Friday, May 31st. Open Text’s dividend payout ratio (DPR) is currently 161.29%.

Institutional Investors Weigh In On Open Text

A number of institutional investors have recently modified their holdings of the stock. Boston Partners raised its holdings in shares of Open Text by 0.5% during the fourth quarter. Boston Partners now owns 60,137 shares of the software maker’s stock worth $2,527,000 after acquiring an additional 318 shares in the last quarter. 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 valued at $92,000 after purchasing an additional 334 shares in the last quarter. Chase Investment Counsel Corp increased its position in Open Text by 6.9% in the 1st quarter. Chase Investment Counsel Corp now owns 8,232 shares of the software maker’s stock worth $319,000 after purchasing an additional 528 shares during the last quarter. Allworth Financial LP raised its stake in shares of Open Text by 125.7% during the 3rd quarter. Allworth Financial LP now owns 957 shares of the software maker’s stock worth $34,000 after purchasing an additional 533 shares in the last quarter. Finally, Optiver Holding B.V. acquired a new stake in shares of Open Text during the 4th quarter valued at about $27,000. Institutional investors and hedge funds 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.