Open Text (NASDAQ:OTEX) Price Target Cut to $40.00 by Analysts at TD Securities

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target cut by TD Securities from $54.00 to $40.00 in a report published on Friday morning, BayStreet.CA reports. They currently have a buy rating on the software maker’s stock.

Other research analysts also recently issued reports about the company. National Bankshares cut their price target on Open Text from $60.00 to $50.00 and set an outperform rating for the company in a report on Friday. BMO Capital Markets lowered Open Text from an outperform rating to a market perform rating and dropped their target price for the company from $50.00 to $38.00 in a research note on Friday. Royal Bank of Canada reissued an outperform rating and issued a $53.00 price target on shares of Open Text in a research note on Friday, February 2nd. StockNews.com raised shares of Open Text from a hold rating to a buy rating in a research note on Tuesday, February 6th. Finally, CIBC raised their target price on shares of Open Text from $42.00 to $44.00 and gave the stock a neutral rating in a research report on Thursday, January 11th. Six analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to MarketBeat, Open Text currently has a consensus rating of Hold and an average price target of $42.25.

Open Text Price Performance

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

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, February 1st. The software maker reported $1.11 EPS for the quarter, topping analysts’ consensus estimates of $1.10 by $0.01. The business 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 2.85% and a return on equity of 24.61%. As a group, research analysts predict that Open Text will post 4.14 EPS for the current fiscal year.

Open Text Increases Dividend

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

Hedge Funds Weigh In On Open Text

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