Open Text (NASDAQ:OTEX) Downgraded to “Buy” Rating by Wall Street Zen

Wall Street Zen lowered shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a strong-buy rating to a buy rating in a research note issued to investors on Tuesday.

A number of other research firms have also recently commented on OTEX. Royal Bank Of Canada reduced their price target on Open Text from $30.00 to $27.00 and set a “sector perform” rating for the company in a report on Friday, May 8th. Citigroup dropped their price objective on Open Text from $26.00 to $25.00 and set a “neutral” rating on the stock in a research note on Friday, May 8th. National Bank Financial cut their price objective on Open Text from $45.00 to $33.00 and set an “outperform” rating for the company in a research report on Wednesday, May 27th. UBS Group set a $25.00 target price on Open Text in a research note on Friday, May 8th. Finally, Barclays boosted their target price on Open Text from $25.00 to $27.00 and gave the stock an “equal weight” rating in a report on Monday, May 11th. Four investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, Open Text has a consensus rating of “Hold” and a consensus price target of $33.67.

Open Text Stock Performance

Shares of OTEX stock opened at $24.79 on Tuesday. The stock has a market cap of $6.00 billion, a P/E ratio of 12.09 and a beta of 1.04. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.94 and a quick ratio of 0.94. The company has a fifty day moving average price of $22.68 and a two-hundred day moving average price of $23.92. Open Text has a one year low of $19.77 and a one year high of $39.90.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, beating analysts’ consensus estimates of $0.94 by $0.07. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.26 billion. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The company’s quarterly revenue was up 2.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.82 EPS. As a group, equities analysts predict that Open Text will post 4.05 EPS for the current year.

Open Text Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 19th. Stockholders of record on Friday, June 5th were paid a dividend of $0.275 per share. The ex-dividend date was Friday, June 5th. This represents a $1.10 dividend on an annualized basis and a dividend yield of 4.4%. Open Text’s dividend payout ratio (DPR) is 53.66%.

Institutional Trading of Open Text

Several institutional investors have recently added to or reduced their stakes in the company. Brandes Investment Partners LP grew its position in Open Text by 1.2% during the fourth quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker’s stock worth $296,679,000 after buying an additional 106,766 shares in the last quarter. Value Partners Investments Inc. raised its holdings in Open Text by 30.0% in the 1st quarter. Value Partners Investments Inc. now owns 2,413,989 shares of the software maker’s stock valued at $53,687,000 after acquiring an additional 556,534 shares in the last quarter. Montrusco Bolton Investments Inc. acquired a new position in Open Text in the 4th quarter valued at $7,140,000. Swiss National Bank lifted its position in shares of Open Text by 26.5% during the 1st quarter. Swiss National Bank now owns 848,200 shares of the software maker’s stock valued at $18,874,000 after acquiring an additional 177,700 shares during the period. Finally, Munich Reinsurance Co Stock Corp in Munich lifted its position in shares of Open Text by 59.0% during the 4th quarter. Munich Reinsurance Co Stock Corp in Munich now owns 427,564 shares of the software maker’s stock valued at $14,121,000 after acquiring an additional 158,698 shares during the period. 70.37% of the stock is currently owned by institutional investors.

About Open Text

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.