Open Text (NASDAQ:OTEX) Upgraded by StockNews.com to Strong-Buy Rating

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 Tuesday.

Several other research analysts also recently weighed in on the company. Barclays cut 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. Citigroup lowered their price objective 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. Royal Bank of Canada downgraded shares of Open Text from an “outperform” rating to a “sector perform” rating and decreased their price target for the stock from $45.00 to $33.00 in a research note on Friday, November 1st. TD Securities reduced their price target on Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a research report on Friday, November 1st. Finally, Scotiabank dropped their price objective on Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a 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 issued a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $35.55.

Open Text Stock Down 3.2 %

Shares of Open Text stock opened at $28.63 on Tuesday. Open Text has a one year low of $27.50 and a one year high of $45.47. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.79 and a quick ratio of 0.79. The stock’s 50-day moving average is $31.10 and its 200 day moving average is $31.03. The firm has a market cap of $7.61 billion, a price-to-earnings ratio of 16.55 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, October 31st. The software maker reported $0.93 EPS for the quarter, beating the consensus estimate of $0.80 by $0.13. The company had revenue of $1.27 billion during 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% compared to the same quarter last year. During the same period last year, the business posted $0.90 EPS. Equities 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 will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be paid a dividend of $0.262 per share. The ex-dividend date of this dividend is Friday, November 29th. This is an increase from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.66%. Open Text’s payout ratio is 60.69%.

Hedge Funds Weigh In On Open Text

A number of hedge funds have recently modified their holdings of the company. Franklin Resources Inc. increased its stake in Open Text by 19.9% in the 3rd quarter. Franklin Resources Inc. now owns 205,891 shares of the software maker’s stock worth $7,086,000 after buying an additional 34,135 shares in the last quarter. Wilmington Savings Fund Society FSB purchased a new stake in Open Text during the 3rd quarter valued at approximately $499,000. Toronto Dominion Bank raised its position in shares of Open Text by 169.6% during the third quarter. Toronto Dominion Bank now owns 576,105 shares of the software maker’s stock valued at $19,173,000 after buying an additional 362,422 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Open Text by 4.6% in the third quarter. Geode Capital Management LLC now owns 1,397,853 shares of the software maker’s stock worth $46,460,000 after buying an additional 61,696 shares in the last quarter. Finally, Public Employees Retirement System of Ohio bought a new position in shares of Open Text during the third quarter worth $1,521,000. 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.