National Bankshares Lowers Open Text (NASDAQ:OTEX) to Sector Perform

National Bankshares cut shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from an outperform rating to a sector perform rating in a research report sent to investors on Friday, BayStreet.CA reports. The brokerage currently has $38.00 price target on the software maker’s stock.

A number of other equities research analysts have also issued reports on the stock. CIBC cut their price objective on shares of Open Text from $36.00 to $33.00 and set a neutral rating for the company in a report on Friday, July 19th. Scotiabank reiterated a sector perform rating on shares of Open Text in a research report on Friday, May 3rd. National Bank Financial downgraded Open Text from an outperform rating to a sector perform rating in a research report on Friday. Citigroup lowered their target price on Open Text from $37.00 to $32.00 and set a neutral rating for the company in a research report on Wednesday, June 26th. Finally, Raymond James lowered their target price on Open Text from $55.00 to $48.00 and set an outperform rating for the company in a research report on Friday, May 3rd. Eight analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of Hold and an average target price of $38.80.

Open Text Stock Performance

Open Text stock traded up $0.54 during midday trading on Friday, hitting $29.03. The stock had a trading volume of 439,336 shares, compared to its average volume of 665,425. The firm’s fifty day moving average is $30.01 and its two-hundred day moving average is $34.78. The company has a market capitalization of $7.77 billion, a PE ratio of 46.44 and a beta of 1.12. Open Text has a 52-week low of $27.54 and a 52-week high of $45.47. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 2.01.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, August 1st. The software maker reported $0.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.93 by $0.05. Open Text had a net margin of 8.06% and a return on equity of 25.22%. The business had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.41 billion. During the same period last year, the firm posted $0.79 EPS. The company’s revenue was down 8.6% on a year-over-year basis. On average, research analysts forecast that Open Text will post 3.18 EPS for the current year.

Open Text Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 20th. Stockholders of record on Friday, August 30th will be given a dividend of $0.192 per share. The ex-dividend date is Friday, August 30th. This represents a $0.77 annualized dividend and a dividend yield of 2.65%. Open Text’s dividend payout ratio (DPR) is 161.29%.

Hedge Funds Weigh In On Open Text

Several institutional investors have recently made changes to their positions in OTEX. International Assets Investment Management LLC purchased a new position in shares of Open Text during the fourth quarter valued at $742,000. DekaBank Deutsche Girozentrale increased its stake in shares of Open Text by 12.8% during the fourth quarter. DekaBank Deutsche Girozentrale now owns 110,944 shares of the software maker’s stock valued at $4,668,000 after buying an additional 12,609 shares during the period. Allspring Global Investments Holdings LLC increased its stake in shares of Open Text by 14.9% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 136,262 shares of the software maker’s stock valued at $5,726,000 after buying an additional 17,645 shares during the period. Value Partners Investments Inc. increased its stake in shares of Open Text by 16.3% during the fourth quarter. Value Partners Investments Inc. now owns 2,046,243 shares of the software maker’s stock valued at $85,983,000 after buying an additional 286,766 shares during the period. Finally, Cerity Partners LLC purchased a new position in shares of Open Text during the fourth quarter valued at $1,202,000. Hedge funds and other institutional investors own 70.37% of the company’s stock.

Open Text Company Profile

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.