Open Text (NASDAQ:OTEX) Upgraded to “Strong-Buy” at StockNews.com

StockNews.com upgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a strong-buy rating in a research note issued to investors on Friday.

Several other research analysts also recently commented on the stock. TD Securities dropped their price objective on shares of Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a report on Monday, December 30th. Royal Bank of Canada downgraded shares of Open Text from an “outperform” rating to a “sector perform” rating and dropped their price objective for the company from $45.00 to $33.00 in a report on Friday, November 1st. Citigroup dropped their price objective on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a report on Friday, November 1st. BMO Capital Markets dropped their price objective 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. Finally, Scotiabank dropped their price objective on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a report on Friday, November 1st. Nine research 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. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $35.55.

Open Text Trading Up 1.1 %

Shares of Open Text stock opened at $28.57 on Friday. The company has a market capitalization of $7.56 billion, a P/E ratio of 16.51 and a beta of 1.12. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79. The company has a fifty day moving average of $29.57 and a 200 day moving average of $30.97. Open Text has a fifty-two week low of $27.05 and a fifty-two week high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.13. The company had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.28 billion. Open Text had a net margin of 8.35% and a return on equity of 24.34%. Open Text’s quarterly revenue was down 11.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.90 EPS. On average, sell-side analysts anticipate that Open Text will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, November 29th were given a dividend of $0.262 per share. This represents a $1.05 annualized dividend and a dividend yield of 3.67%. This is a boost from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date was Friday, November 29th. Open Text’s dividend payout ratio is currently 60.69%.

Institutional Trading of Open Text

Hedge funds have recently made changes to their positions in the business. Assenagon Asset Management S.A. raised its position in Open Text by 1.7% in the 3rd quarter. Assenagon Asset Management S.A. now owns 18,872 shares of the software maker’s stock worth $629,000 after purchasing an additional 322 shares during the period. BNP Paribas Financial Markets raised its position in Open Text by 3.3% in the 3rd quarter. BNP Paribas Financial Markets now owns 11,093 shares of the software maker’s stock worth $369,000 after purchasing an additional 351 shares during the period. Cromwell Holdings LLC raised its position in Open Text by 29.6% in the 3rd quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock worth $55,000 after purchasing an additional 380 shares during the period. Blue Trust Inc. raised its position in Open Text by 435.7% in the 3rd quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock worth $32,000 after purchasing an additional 793 shares during the period. Finally, Vanguard Personalized Indexing Management LLC raised its position in Open Text by 5.3% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 17,436 shares of the software maker’s stock worth $524,000 after purchasing an additional 874 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.