Open Text (NASDAQ:OTEX) Upgraded to “Strong-Buy” at StockNews.com

StockNews.com upgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a strong-buy rating in a research report report published on Sunday.

Other equities research analysts also recently issued reports about the stock. UBS Group initiated coverage on shares of Open Text in a research note on Tuesday, December 17th. They set a “neutral” rating and a $32.00 target price on the stock. Scotiabank cut their price objective on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research report on Friday, November 1st. BMO Capital Markets decreased their target price on Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st. Royal Bank of Canada downgraded Open Text from an “outperform” rating to a “sector perform” rating and cut their price target for the stock from $45.00 to $33.00 in a report on Friday, November 1st. Finally, Citigroup decreased their price objective on Open Text from $33.00 to $30.00 and set a “neutral” rating for the company in a research note on Thursday. Nine investment analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $35.27.

Open Text Stock Down 1.2 %

NASDAQ:OTEX opened at $27.78 on Friday. Open Text has a 52 week low of $26.84 and a 52 week high of $45.47. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.54. The stock’s fifty day moving average is $29.03 and its two-hundred day moving average is $30.84. The stock has a market capitalization of $7.33 billion, a price-to-earnings ratio of 16.06 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, October 31st. The software maker reported $0.93 EPS for the quarter, beating analysts’ consensus estimates of $0.80 by $0.13. The company had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.28 billion. Open Text had a return on equity of 24.34% and a net margin of 8.35%. Open Text’s revenue for the quarter was down 11.0% on a year-over-year basis. During the same period last year, the business posted $0.90 EPS. Research analysts anticipate that Open Text will post 3.37 EPS for the current year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 20th. Shareholders of record on Friday, November 29th were issued a dividend of $0.262 per share. The ex-dividend date was Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a yield of 3.77%. This is a boost from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio (DPR) is presently 60.69%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. American Century Companies Inc. boosted its position in shares of Open Text by 13.6% in the 2nd quarter. American Century Companies Inc. now owns 92,871 shares of the software maker’s stock valued at $2,789,000 after purchasing an additional 11,127 shares during the period. Dimensional Fund Advisors LP lifted its stake in Open Text by 6.1% in the second quarter. Dimensional Fund Advisors LP now owns 787,619 shares of the software maker’s stock valued at $23,660,000 after buying an additional 45,380 shares during the last quarter. Vanguard Personalized Indexing Management LLC boosted its holdings in shares of Open Text by 5.3% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 17,436 shares of the software maker’s stock valued at $524,000 after acquiring an additional 874 shares during the period. XTX Topco Ltd purchased a new position in shares of Open Text during the second quarter worth approximately $778,000. Finally, Intech Investment Management LLC increased its holdings in shares of Open Text by 227.1% in the 2nd quarter. Intech Investment Management LLC now owns 64,196 shares of the software maker’s stock valued at $1,927,000 after acquiring an additional 44,573 shares during the period. 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.