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 research report sent to investors on Friday.

Several other research firms also recently weighed in on OTEX. Barclays lowered their price objective on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a report on Friday, November 1st. Citigroup dropped their price target on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a research report on Friday, November 1st. TD Securities lowered their price objective on Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a research note on Monday, December 30th. Scotiabank cut their target price 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. Finally, UBS Group initiated coverage on Open Text in a research report on Tuesday, December 17th. They issued a “neutral” rating and a $32.00 price target for the company. Nine equities research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $35.55.

Open Text Trading Up 1.1 %

OTEX opened at $28.57 on Friday. The company has a market cap of $7.56 billion, a P/E ratio of 16.51 and a beta of 1.12. The company 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 current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. Open Text has a 1-year low of $27.05 and a 1-year high of $45.47.

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

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 20th. Investors of record on Friday, November 29th were paid a $0.262 dividend. This is an increase from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date was Friday, November 29th. This represents a $1.05 annualized dividend and a yield of 3.67%. Open Text’s dividend payout ratio is presently 60.69%.

Institutional Trading of Open Text

Several hedge funds have recently made changes to their positions in the company. JARISLOWSKY FRASER Ltd increased its holdings in Open Text by 5.1% in the 2nd quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock worth $471,415,000 after acquiring an additional 767,822 shares during the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of Open Text by 1.1% in the third quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker’s stock worth $187,952,000 after purchasing an additional 63,620 shares in the last quarter. National Bank of Canada FI raised its position in shares of Open Text by 1.1% in the third quarter. National Bank of Canada FI now owns 4,068,116 shares of the software maker’s stock valued at $135,399,000 after purchasing an additional 46,223 shares during the period. Letko Brosseau & Associates Inc. lifted its stake in shares of Open Text by 16.8% during the 2nd quarter. Letko Brosseau & Associates Inc. now owns 3,929,040 shares of the software maker’s stock valued at $117,956,000 after buying an additional 566,150 shares in the last quarter. Finally, Clearbridge Investments LLC boosted its holdings in Open Text by 6.9% in the 2nd quarter. Clearbridge Investments LLC now owns 2,954,755 shares of the software maker’s stock worth $88,754,000 after buying an additional 191,271 shares during the period. 70.37% of the stock is currently owned by institutional investors.

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.