Open Text (NASDAQ:OTEX) Rating Increased 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 report released on Friday.

Several other brokerages have also issued reports on OTEX. BMO Capital Markets dropped their target price on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a research report on Friday, November 1st. Citigroup dropped their price objective on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a report on Friday, November 1st. TD Securities reduced their target price on Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a research note on Monday, December 30th. Barclays dropped their price target on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a research note on Friday, November 1st. Finally, Scotiabank reduced 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. Nine research analysts have rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $35.55.

Open Text Stock Up 1.1 %

Shares of NASDAQ:OTEX opened at $28.57 on Friday. The firm has a fifty day moving average price of $29.57 and a two-hundred day moving average price of $30.95. The company has a market cap of $7.56 billion, a price-to-earnings ratio of 16.51 and a beta of 1.12. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.79 and a quick ratio of 0.79. Open Text has a one year low of $27.05 and a one year high of $45.47.

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

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, November 29th were issued a $0.262 dividend. This is a boost from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Friday, November 29th. This represents a $1.05 annualized dividend and a dividend yield of 3.67%. Open Text’s dividend payout ratio (DPR) is currently 60.69%.

Institutional Investors Weigh In On Open Text

Several institutional investors have recently added to or reduced their stakes in the company. Blue Trust Inc. raised its stake in shares of Open Text by 435.7% during the third quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock valued at $32,000 after acquiring an additional 793 shares during the last quarter. Kimelman & Baird LLC purchased a new stake in Open Text in the 2nd quarter worth approximately $36,000. Cromwell Holdings LLC grew its position in shares of Open Text by 29.6% in the 3rd quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock worth $55,000 after buying an additional 380 shares during the last quarter. Essex LLC purchased a new position in shares of Open Text during the third quarter valued at approximately $210,000. Finally, Net Worth Advisory Group bought a new position in shares of Open Text during the third quarter valued at approximately $226,000. Hedge funds and other institutional investors 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.