Open Text (NASDAQ:OTEX) Coverage Initiated by Analysts at UBS Group

UBS Group began coverage on shares of Open Text (NASDAQ:OTEX) (TSE:OTC) in a research report released on Tuesday, MarketBeat Ratings reports. The firm issued a neutral rating and a $32.00 target price on the software maker’s stock.

OTEX has been the subject of a number of other reports. BMO Capital Markets reduced their target price on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st. Citigroup reduced their price objective on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a research note on Friday, November 1st. TD Securities decreased their target price on shares of Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a research report on Friday, November 1st. Barclays cut their price target on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a report on Friday, November 1st. Finally, Royal Bank of Canada lowered Open Text from an “outperform” rating to a “sector perform” rating and decreased their price objective for the company from $45.00 to $33.00 in a report on Friday, November 1st. Nine analysts have rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $35.55.

Open Text Stock Down 3.2 %

Shares of Open Text stock opened at $28.63 on Tuesday. Open Text has a 1 year low of $27.50 and a 1 year high of $45.47. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.79 and a quick ratio of 0.79. The stock has a market cap of $7.61 billion, a price-to-earnings ratio of 16.55 and a beta of 1.11. The firm’s 50-day moving average is $31.10 and its two-hundred day moving average is $31.03.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.80 by $0.13. The business had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.28 billion. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The business’s revenue for the quarter was down 11.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.90 EPS. As a group, research analysts expect that Open Text will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Shareholders of record on Friday, November 29th will be given a dividend of $0.262 per share. The ex-dividend date of this dividend is Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a yield of 3.66%. This is a boost from Open Text’s previous quarterly dividend of $0.19. Open Text’s payout ratio is currently 60.69%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Brandes Investment Partners LP increased its holdings in Open Text by 236.8% in the 2nd quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock worth $55,059,000 after buying an additional 1,290,011 shares during the period. The Manufacturers Life Insurance Company raised its holdings in shares of Open Text by 25.1% during 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 last quarter. Cooke & Bieler LP boosted its holdings in Open Text by 18.6% in the second 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 during the last quarter. JARISLOWSKY FRASER Ltd grew its position in Open Text by 5.1% during the 2nd quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock worth $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% 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 buying an additional 599,790 shares during the last quarter. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

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.