Open Text (NASDAQ:OTEX) Downgraded by BMO Capital Markets to Market Perform

BMO Capital Markets lowered shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from an outperform rating to a market perform rating in a research note issued to investors on Friday, Marketbeat.com reports. The firm currently has $38.00 price target on the software maker’s stock, down from their previous price target of $50.00.

A number of other research firms have also recently commented on OTEX. Royal Bank of Canada reissued an outperform rating and issued a $53.00 target price on shares of Open Text in a research note on Friday, February 2nd. Jefferies Financial Group assumed coverage on Open Text in a research note on Tuesday, February 27th. They issued a buy rating and a $45.00 target price on the stock. StockNews.com raised Open Text from a hold rating to a buy rating in a research note on Tuesday, February 6th. Citigroup cut their target price on Open Text from $44.00 to $42.00 and set a neutral rating on the stock in a research note on Friday, March 22nd. Finally, TD Securities increased their price objective on Open Text from $53.00 to $54.00 and gave the company a buy rating in a research report on Friday, February 2nd. Six research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of Hold and an average target price of $42.25.

Open Text Trading Down 14.7 %

Shares of Open Text stock traded down $5.22 during midday trading on Friday, reaching $30.25. 3,706,318 shares of the company’s stock traded hands, compared to its average volume of 728,893. The company has a debt-to-equity ratio of 2.10, a quick ratio of 1.38 and a current ratio of 1.38. The company has a market cap of $8.25 billion, a PE ratio of 48.79 and a beta of 1.11. The stock has a 50 day moving average of $37.32 and a 200-day moving average of $38.70. Open Text has a 12 month low of $28.19 and a 12 month high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.10 by $0.01. Open Text had a return on equity of 24.61% and a net margin of 2.85%. The business had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.48 billion. As a group, equities analysts expect that Open Text will post 4.14 EPS for the current fiscal year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 18th. Shareholders of record on Friday, May 31st will be given a $0.435 dividend. This represents a $1.74 annualized dividend and a yield of 5.75%. This is a boost from Open Text’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend is Friday, May 31st. Open Text’s dividend payout ratio (DPR) is presently 161.29%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in OTEX. Harris Associates L P raised its stake in Open Text by 1.6% during the 3rd quarter. Harris Associates L P now owns 11,515,807 shares of the software maker’s stock valued at $404,144,000 after purchasing an additional 177,600 shares during the period. Vanguard Group Inc. raised its stake in Open Text by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 10,209,098 shares of the software maker’s stock valued at $428,986,000 after purchasing an additional 123,090 shares during the period. FIL Ltd raised its stake in Open Text by 25.7% during the 4th quarter. FIL Ltd now owns 9,058,024 shares of the software maker’s stock valued at $380,696,000 after purchasing an additional 1,853,891 shares during the period. Beutel Goodman & Co Ltd. raised its stake in Open Text by 9.9% during the 4th quarter. Beutel Goodman & Co Ltd. now owns 8,661,252 shares of the software maker’s stock valued at $365,800,000 after purchasing an additional 782,885 shares during the period. Finally, First Trust Advisors LP raised its stake in Open Text by 1.1% during the 4th quarter. First Trust Advisors LP now owns 6,965,317 shares of the software maker’s stock valued at $292,817,000 after purchasing an additional 74,481 shares during the period. 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.