Open Text’s (OTEX) “Hold” Rating Reaffirmed at TD Cowen

TD Cowen reiterated their hold rating on shares of Open Text (NASDAQ:OTEX) (TSE:OTC) in a research note released on Friday,Benzinga reports. They currently have a $40.00 target price on the software maker’s stock.

Several other equities analysts have also weighed in on OTEX. Scotiabank upgraded Open Text from a “sector perform” rating to an “outperform” rating and lifted their price target for the company from $35.00 to $50.00 in a research note on Wednesday, September 24th. Wall Street Zen upgraded Open Text from a “hold” rating to a “buy” rating in a report on Saturday, August 9th. National Bank Financial upgraded Open Text from a “sector perform” rating to an “outperform” rating and set a $45.00 price objective on the stock in a report on Monday, September 15th. National Bankshares upgraded Open Text from a “sector perform” rating to an “outperform” rating and lifted their price objective for the stock from $34.00 to $45.00 in a report on Monday, September 15th. Finally, Barclays reiterated a “positive” rating on shares of Open Text in a report on Friday, August 8th. Four equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $37.25.

Open Text Price Performance

Shares of Open Text stock opened at $37.94 on Friday. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.61. Open Text has a twelve month low of $22.79 and a twelve month high of $39.04. The business has a 50-day moving average price of $33.41 and a 200 day moving average price of $29.51. The firm has a market cap of $9.60 billion, a PE ratio of 22.99 and a beta of 1.17.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.11. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The firm had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same quarter in the previous year, the business earned $0.98 EPS. Open Text’s revenue for the quarter was down 3.8% compared to the same quarter last year. Sell-side analysts predict that Open Text will post 3.45 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 19th. Stockholders of record on Friday, September 5th were issued a dividend of $0.275 per share. The ex-dividend date was Friday, September 5th. This represents a $1.10 annualized dividend and a dividend yield of 2.9%. This is an increase from Open Text’s previous quarterly dividend of $0.26. Open Text’s payout ratio is presently 66.67%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Plato Investment Management Ltd boosted its holdings in shares of Open Text by 926.0% during the 1st quarter. Plato Investment Management Ltd now owns 49,999 shares of the software maker’s stock worth $1,276,000 after purchasing an additional 45,126 shares during the last quarter. Korea Investment CORP lifted its holdings in Open Text by 107.7% in the first quarter. Korea Investment CORP now owns 188,444 shares of the software maker’s stock valued at $4,755,000 after acquiring an additional 97,700 shares during the last quarter. Parallel Advisors LLC lifted its holdings in Open Text by 219.3% in the first quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker’s stock valued at $49,000 after acquiring an additional 1,331 shares during the last quarter. Allspring Global Investments Holdings LLC lifted its holdings in Open Text by 12.7% in the first quarter. Allspring Global Investments Holdings LLC now owns 187,565 shares of the software maker’s stock valued at $4,735,000 after acquiring an additional 21,089 shares during the last quarter. Finally, Value Partners Investments Inc. lifted its holdings in Open Text by 9.8% in the second quarter. Value Partners Investments Inc. now owns 2,561,601 shares of the software maker’s stock valued at $74,709,000 after acquiring an additional 228,062 shares during the last quarter. 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.