Open Text (NASDAQ:OTEX) Upgraded at Zacks Research

Zacks Research upgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a hold rating to a strong-buy rating in a report issued on Wednesday,Zacks.com reports.

A number of other equities research analysts have also issued reports on the company. TD Securities lowered Open Text from a “buy” rating to a “hold” rating and upped their price target for the company from $35.00 to $40.00 in a research report on Friday, October 3rd. UBS Group upped their target price on Open Text from $32.00 to $38.00 and gave the company a “neutral” rating in a report on Friday, November 7th. CIBC lifted their price target on Open Text from $34.00 to $40.00 and gave the stock a “neutral” rating in a report on Wednesday, October 29th. Scotiabank raised shares of Open Text from a “sector perform” rating to an “outperform” rating and boosted their price target for the company from $35.00 to $50.00 in a research report on Wednesday, September 24th. Finally, Barclays raised their price objective on shares of Open Text from $33.00 to $39.00 and gave the stock an “equal weight” rating in a research report on Tuesday, October 21st. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat, Open Text presently has a consensus rating of “Hold” and an average target price of $39.42.

Open Text Trading Down 1.8%

Shares of OTEX opened at $33.68 on Wednesday. Open Text has a 52-week low of $22.79 and a 52-week high of $39.90. The stock has a market cap of $8.49 billion, a PE ratio of 20.41 and a beta of 1.14. The firm’s fifty day moving average is $37.38 and its two-hundred day moving average is $32.09. 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 (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings results on Wednesday, November 5th. The software maker reported $1.05 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.05. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same period last year, the firm posted $0.93 earnings per share. The company’s revenue for the quarter was up 1.5% on a year-over-year basis. Research analysts forecast that Open Text will post 3.45 earnings per share for the current fiscal year.

Open Text Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 19th. Stockholders of record on Friday, December 5th will be given a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Friday, December 5th. Open Text’s dividend payout ratio (DPR) is currently 57.59%.

Hedge Funds Weigh In On Open Text

A number of hedge funds and other institutional investors have recently bought and sold shares of OTEX. JARISLOWSKY FRASER Ltd lifted its position in shares of Open Text by 0.6% during the third quarter. JARISLOWSKY FRASER Ltd now owns 21,150,154 shares of the software maker’s stock worth $790,736,000 after purchasing an additional 117,436 shares in the last quarter. Vanguard Group Inc. lifted its holdings in Open Text by 2.0% during the 3rd quarter. Vanguard Group Inc. now owns 11,689,086 shares of the software maker’s stock worth $436,926,000 after buying an additional 229,758 shares in the last quarter. First Trust Advisors LP boosted its position in Open Text by 9.3% in the 3rd quarter. First Trust Advisors LP now owns 9,027,450 shares of the software maker’s stock valued at $337,445,000 after buying an additional 765,366 shares during the period. Brandes Investment Partners LP grew its stake in shares of Open Text by 42.7% in the second quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker’s stock worth $244,356,000 after acquiring an additional 2,506,058 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of Open Text by 11.7% during the second quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker’s stock worth $225,898,000 after acquiring an additional 810,352 shares during the period. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

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.