Open Text (NASDAQ:OTEX) Price Target Cut to $32.00 by Analysts at BMO Capital Markets

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price trimmed by BMO Capital Markets from $33.00 to $32.00 in a research note published on Friday, MarketBeat.com reports. The firm currently has a market perform rating on the software maker’s stock.

Several other equities research analysts have also weighed in on OTEX. National Bank Financial lowered shares of Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. Jefferies Financial Group lowered their target price on Open Text from $42.00 to $35.00 and set a “buy” rating for the company in a report on Friday, August 2nd. Barclays cut their price target on Open Text from $38.00 to $36.00 and set an “equal weight” rating on the stock in a report on Monday, August 5th. Scotiabank lowered their price objective on Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research note on Friday. Finally, National Bankshares lowered Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 target price on the stock. in a research report on Friday, August 2nd. Eight research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $35.90.

Open Text Price Performance

Shares of NASDAQ OTEX opened at $28.98 on Friday. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.51. The company has a market capitalization of $7.70 billion, a price-to-earnings ratio of 16.75 and a beta of 1.13. Open Text has a twelve month low of $27.50 and a twelve month high of $45.47. The business has a 50 day simple moving average of $32.73 and a 200-day simple moving average of $31.54.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, August 1st. The software maker reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.05. Open Text had a net margin of 8.35% and a return on equity of 24.37%. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.41 billion. During the same quarter in the previous year, the firm earned $0.79 earnings per share. The firm’s revenue for the quarter was down 8.6% compared to the same quarter last year. As a group, equities research analysts expect that Open Text will post 3.23 earnings per share 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 issued a $0.262 dividend. The ex-dividend date of this dividend is Friday, November 29th. This represents a $1.05 annualized dividend and a yield of 3.62%. This is an increase from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio is presently 60.69%.

Hedge Funds Weigh In On Open Text

Large investors have recently bought and sold shares of the stock. Brandes Investment Partners LP boosted its holdings in shares of Open Text by 236.8% in the second quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock valued at $55,059,000 after acquiring an additional 1,290,011 shares in the last quarter. The Manufacturers Life Insurance Company lifted its position in Open Text by 25.1% in the second quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock worth $167,277,000 after purchasing an additional 1,118,479 shares during the period. Cooke & Bieler LP boosted its stake in 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 purchasing an additional 867,978 shares in the last quarter. JARISLOWSKY FRASER Ltd increased 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 purchasing an additional 767,822 shares during the period. Finally, National Bank of Canada FI raised its stake in shares of Open Text by 17.5% in the 2nd quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock worth $120,390,000 after buying an additional 599,790 shares in the last quarter. Institutional investors and hedge funds 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.