Open Text (NASDAQ:OTEX) Stock Rating Lowered by Royal Bank of Canada

Royal Bank of Canada cut shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from an outperform rating to a sector perform rating in a report released on Friday morning, Marketbeat Ratings reports. The firm currently has $33.00 price target on the software maker’s stock, down from their prior price target of $45.00.

Several other analysts have also recently weighed in on OTEX. National Bankshares cut Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price target on the stock. in a report on Friday, August 2nd. BMO Capital Markets decreased their price target on shares of Open Text from $38.00 to $33.00 and set a “market perform” rating for the company in a research note on Friday, August 2nd. Barclays dropped their price objective on Open Text from $38.00 to $36.00 and set an “equal weight” rating on the stock in a research note on Monday, August 5th. National Bank Financial downgraded Open Text from an “outperform” rating to a “sector perform” rating in a research report on Friday, August 2nd. Finally, Citigroup boosted their price objective on Open Text from $32.00 to $34.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 25th. Eight analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $35.90.

Open Text Price Performance

NASDAQ:OTEX opened at $28.62 on Friday. The firm has a market capitalization of $7.60 billion, a price-to-earnings ratio of 16.54 and a beta of 1.13. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.51. The stock’s 50 day moving average price is $32.65 and its two-hundred day moving average price is $31.50. Open Text has a 12-month low of $27.50 and a 12-month high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, beating analysts’ consensus estimates of $0.80 by $0.13. Open Text had a net margin of 8.35% and a return on equity of 24.37%. The company had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the previous year, the business earned $0.90 earnings per share. The firm’s quarterly revenue was down 11.0% on a year-over-year basis. On average, analysts anticipate that Open Text will post 3.23 earnings per share for the current year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be issued a $0.262 dividend. The ex-dividend date is Friday, November 29th. This represents a $1.05 annualized dividend and a yield of 3.66%. This is a positive change from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio (DPR) is 60.69%.

Hedge Funds Weigh In On Open Text

Several large investors have recently modified their holdings of the business. Headlands Technologies LLC bought a new position in Open Text in the 1st quarter worth about $32,000. Blue Trust Inc. lifted its stake in Open Text by 435.7% in the 3rd quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock worth $32,000 after purchasing an additional 793 shares in the last quarter. Ridgewood Investments LLC bought a new position in Open Text in the 2nd quarter valued at $30,000. Kimelman & Baird LLC purchased a new position in shares of Open Text during the 2nd quarter valued at $36,000. Finally, Cromwell Holdings LLC increased its holdings in shares of Open Text by 29.6% in the third quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock worth $55,000 after purchasing an additional 380 shares during the period. Hedge funds and other institutional investors 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.