Scotiabank Cuts Open Text (NASDAQ:OTEX) Price Target to $35.00

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price cut by Scotiabank from $40.00 to $35.00 in a research note released on Friday morning, MarketBeat reports. They currently have a sector perform rating on the software maker’s stock.

OTEX has been the subject of a number of other reports. Jefferies Financial Group decreased their price objective on shares of Open Text from $42.00 to $35.00 and set a “buy” rating for the company in a report on Friday, August 2nd. BMO Capital Markets decreased their price objective on shares of Open Text from $38.00 to $33.00 and set a “market perform” rating for the company in a report on Friday, August 2nd. Barclays decreased their price objective on shares of Open Text from $38.00 to $36.00 and set an “equal weight” rating for the company in a report on Monday, August 5th. National Bankshares lowered shares of Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price objective for the company. in a report on Friday, August 2nd. Finally, National Bank Financial lowered shares of Open Text from an “outperform” rating to a “sector perform” rating in a report on Friday, August 2nd. Eight equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $35.90.

Open Text Stock Performance

Shares of OTEX opened at $28.98 on Friday. 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 business’s 50 day moving average price is $32.73 and its 200-day moving average price is $31.54. Open Text has a 52 week low of $27.50 and a 52 week high of $45.47. The stock has a market cap of $7.70 billion, a P/E ratio of 16.75 and a beta of 1.13.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, August 1st. The software maker reported $0.98 EPS for the quarter, topping analysts’ consensus estimates of $0.93 by $0.05. Open Text had a return on equity of 24.37% and a net margin of 8.35%. The firm had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.41 billion. During the same period in the previous year, the firm posted $0.79 EPS. The business’s revenue for the quarter was down 8.6% compared to the same quarter last year. Equities research analysts anticipate that Open Text will post 3.23 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 20th. Shareholders 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 a positive change from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 dividend on an annualized basis and a yield of 3.62%. Open Text’s payout ratio is currently 60.69%.

Institutional Investors Weigh In On Open Text

A number of hedge funds have recently added to or reduced their stakes in the stock. JARISLOWSKY FRASER Ltd grew its position in shares of Open Text by 5.1% during the 2nd quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock valued at $471,415,000 after acquiring an additional 767,822 shares during the period. Vanguard Group Inc. grew its position in shares of Open Text by 1.3% during the 1st quarter. Vanguard Group Inc. now owns 10,344,910 shares of the software maker’s stock valued at $401,693,000 after acquiring an additional 135,812 shares during the period. The Manufacturers Life Insurance Company grew its position in shares of Open Text by 25.1% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock valued at $167,277,000 after acquiring an additional 1,118,479 shares during the period. Cooke & Bieler LP grew its position in shares of Open Text by 18.6% during the 2nd quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock valued at $166,325,000 after acquiring an additional 867,978 shares during the period. Finally, National Bank of Canada FI grew its position in shares of Open Text by 17.5% during the 2nd quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock valued at $120,390,000 after acquiring an additional 599,790 shares during the period. 70.37% of the stock is currently owned by hedge funds and other 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.