Open Text (NASDAQ:OTEX) Rating Lowered to Hold at TD Securities

TD Securities lowered shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a hold rating in a report published on Friday, Marketbeat.com reports. The firm currently has $40.00 price objective on the software maker’s stock, up from their prior price objective of $35.00.

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

Open Text Trading Up 0.7%

Shares of OTEX opened at $37.94 on Friday. The stock has a fifty day moving average price of $33.41 and a two-hundred day moving average price of $29.56. The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.80 and a current ratio of 0.80. Open Text has a 52-week low of $22.79 and a 52-week high of $39.04. The company has a market cap of $9.60 billion, a price-to-earnings ratio of 22.99 and a beta of 1.17.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, topping 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 company had revenue of $1.32 billion for the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter in the prior year, the business earned $0.98 earnings per share. The business’s revenue for the quarter was down 3.8% on a year-over-year basis. Analysts predict that Open Text will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 19th. Investors of record on Friday, September 5th were paid a dividend of $0.275 per share. This represents a $1.10 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend was Friday, September 5th. This is a positive change from Open Text’s previous quarterly dividend of $0.26. Open Text’s dividend payout ratio (DPR) is currently 66.67%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank bought a new stake in shares of Open Text during the second quarter worth $98,882,000. Brandes Investment Partners LP boosted its stake in Open Text by 42.7% in the 2nd quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker’s stock worth $244,356,000 after purchasing an additional 2,506,058 shares during the period. Value Partners Investments Inc. increased its holdings in Open Text by 1,162.1% during the 1st quarter. Value Partners Investments Inc. now owns 2,333,539 shares of the software maker’s stock worth $58,955,000 after purchasing an additional 2,148,639 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of Open Text by 11.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker’s stock valued at $225,898,000 after purchasing an additional 810,352 shares during the period. Finally, Letko Brosseau & Associates Inc. lifted its holdings in shares of Open Text by 16.2% in the second quarter. Letko Brosseau & Associates Inc. now owns 5,649,818 shares of the software maker’s stock valued at $164,754,000 after purchasing an additional 789,013 shares in the last quarter. 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.