Open Text (NASDAQ:OTEX) Rating Increased to Strong-Buy at Wall Street Zen

Wall Street Zen upgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a strong-buy rating in a research note released on Monday.

Several other research firms have also commented on OTEX. National Bank Financial cut their price objective on Open Text from $45.00 to $33.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Weiss Ratings restated a “hold (c-)” rating on shares of Open Text in a research report on Wednesday, June 24th. Raymond James Financial lowered their price target on Open Text from $42.00 to $35.00 and set an “outperform” rating on the stock in a research note on Friday, May 8th. Royal Bank Of Canada decreased their price objective on Open Text from $30.00 to $27.00 and set a “sector perform” rating on the stock in a report on Friday, May 8th. Finally, Scotiabank dropped their target price on shares of Open Text from $50.00 to $40.00 and set a “sector outperform” rating for the company in a report on Friday, May 8th. Four equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $33.67.

Open Text Stock Performance

OTEX opened at $23.33 on Monday. The firm’s fifty day simple moving average is $22.70 and its two-hundred day simple moving average is $24.32. Open Text has a 52-week low of $19.77 and a 52-week high of $39.90. The company has a market cap of $5.65 billion, a price-to-earnings ratio of 11.38 and a beta of 1.04. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.56.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.07. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The business had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter in the previous year, the company earned $0.82 earnings per share. The company’s quarterly revenue was up 2.2% on a year-over-year basis. Equities analysts anticipate that Open Text will post 4.05 earnings per share for the current fiscal year.

Open Text Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were given a dividend of $0.275 per share. The ex-dividend date was Friday, June 5th. This represents a $1.10 dividend on an annualized basis and a yield of 4.7%. Open Text’s dividend payout ratio (DPR) is presently 53.66%.

Hedge Funds Weigh In On Open Text

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brandes Investment Partners LP boosted its holdings in Open Text by 1.2% in the 4th quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker’s stock valued at $296,679,000 after purchasing an additional 106,766 shares during the last quarter. Value Partners Investments Inc. grew its stake in shares of Open Text by 30.0% in the 1st quarter. Value Partners Investments Inc. now owns 2,413,989 shares of the software maker’s stock valued at $53,687,000 after buying an additional 556,534 shares during the period. Montrusco Bolton Investments Inc. acquired a new stake in shares of Open Text during the 4th quarter worth approximately $7,140,000. Munich Reinsurance Co Stock Corp in Munich increased its holdings in shares of Open Text by 59.0% during the 4th quarter. Munich Reinsurance Co Stock Corp in Munich now owns 427,564 shares of the software maker’s stock worth $14,121,000 after buying an additional 158,698 shares during the last quarter. Finally, Jupiter Asset Management Ltd. purchased a new stake in shares of Open Text during the 4th quarter valued at approximately $1,974,000. Institutional investors and hedge funds own 70.37% of the company’s stock.

About Open Text

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.