Open Text (NASDAQ:OTEX) Lowered to “Hold” at StockNews.com

Open Text (NASDAQ:OTEX) (TSE:OTC) was downgraded by equities research analysts at StockNews.com from a “buy” rating to a “hold” rating in a research report issued on Friday.

A number of other research firms also recently commented on OTEX. National Bankshares dropped their price objective on Open Text from $60.00 to $50.00 and set an “outperform” rating for the company in a report on Friday. Barclays decreased their price objective on shares of Open Text from $44.00 to $38.00 and set an “equal weight” rating for the company in a research report on Friday. TD Securities cut their price target on Open Text from $54.00 to $40.00 and set a “buy” rating on the stock in a research note on Friday. Royal Bank of Canada restated an “outperform” rating and set a $53.00 price objective on shares of Open Text in a research note on Friday, February 2nd. Finally, BMO Capital Markets lowered Open Text from an “outperform” rating to a “market perform” rating and cut their target price for the company from $50.00 to $38.00 in a research report on Friday. Six investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $42.25.

Open Text Trading Down 14.7 %

Open Text stock traded down $5.22 during trading on Friday, hitting $30.25. The company’s stock had a trading volume of 3,705,104 shares, compared to its average volume of 643,007. The stock’s fifty day moving average is $37.32 and its 200 day moving average is $38.70. The company has a debt-to-equity ratio of 2.10, a quick ratio of 1.38 and a current ratio of 1.38. Open Text has a 1-year low of $28.19 and a 1-year high of $45.47. The stock has a market capitalization of $8.25 billion, a price-to-earnings ratio of 64.36 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.10 by $0.01. The firm had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.48 billion. Open Text had a net margin of 2.24% and a return on equity of 22.99%. As a group, equities research analysts predict that Open Text will post 4.14 EPS for the current year.

Hedge Funds Weigh In On Open Text

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Norges Bank acquired a new position in Open Text during the 4th quarter worth $139,600,000. Clearbridge Investments LLC acquired a new stake in Open Text in the fourth quarter worth about $117,627,000. FIL Ltd grew its position in Open Text by 25.7% in the 4th quarter. FIL Ltd now owns 9,058,024 shares of the software maker’s stock valued at $380,696,000 after buying an additional 1,853,891 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec bought a new stake in shares of Open Text during the 3rd quarter worth about $49,856,000. Finally, The Manufacturers Life Insurance Company lifted its stake in shares of Open Text by 73.6% in the 4th quarter. The Manufacturers Life Insurance Company now owns 1,852,184 shares of the software maker’s stock worth $77,970,000 after acquiring an additional 785,157 shares during the period. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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.