Zacks Investment Research Lowers Open Text (NASDAQ:OTEX) to Hold

Zacks Investment Research lowered shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a strong-buy rating to a hold rating in a report released on Tuesday, Zacks.com reports.

According to Zacks, “Open Text Corporation is engaged in development of innovative intranet, extranet and e-Business applications. Since creating one of the first search engines to index the World Wide Web, the company has remained at the forefront of Internet-based technologies. Open Text solutions allow individuals, teams, organizations, and global trading communities to collaborate on projects, share ideas and accelerate innovation to the fastest possible speed. Open Text Corporation is headquartered in Waterloo, Canada. “

Other equities analysts also recently issued research reports about the company. Raymond James reiterated a buy rating and issued a $21.00 price objective on shares of Colfax in a research note on Thursday, May 2nd. BidaskClub upgraded ZIX from a buy rating to a strong-buy rating in a research report on Friday, May 3rd. Two equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. The stock currently has an average rating of Buy and an average price target of $46.09.

Open Text stock opened at $42.95 on Tuesday. Open Text has a 12 month low of $30.99 and a 12 month high of $43.14. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 0.68. The firm has a 50 day moving average price of $41.09. The stock has a market capitalization of $11.48 billion, a P/E ratio of 47.20 and a beta of 0.48.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Wednesday, May 1st. The software maker reported $0.27 EPS for the quarter, beating the consensus estimate of $0.08 by $0.19. Open Text had a return on equity of 7.31% and a net margin of 9.57%. The business had revenue of $719.10 million for the quarter, compared to the consensus estimate of $710.47 million. During the same quarter in the prior year, the business earned $0.54 earnings per share. Open Text’s revenue for the quarter was up 4.8% on a year-over-year basis. Equities analysts anticipate that Open Text will post 1.16 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Friday, June 21st. Shareholders of record on Friday, May 31st were given a dividend of $0.1746 per share. The ex-dividend date was Thursday, May 30th. This represents a $0.70 annualized dividend and a dividend yield of 1.63%. This is an increase from Open Text’s previous quarterly dividend of $0.12. Open Text’s dividend payout ratio is currently 76.92%.

Several large investors have recently bought and sold shares of the business. Praesidium Investment Management Company LLC lifted its position in shares of Open Text by 0.9% during the fourth quarter. Praesidium Investment Management Company LLC now owns 4,175,626 shares of the software maker’s stock worth $136,125,000 after acquiring an additional 37,599 shares in the last quarter. Bank of Montreal Can lifted its position in shares of Open Text by 11.1% during the first quarter. Bank of Montreal Can now owns 3,011,673 shares of the software maker’s stock worth $115,740,000 after acquiring an additional 301,360 shares in the last quarter. First Trust Advisors LP lifted its position in shares of Open Text by 10.1% during the first quarter. First Trust Advisors LP now owns 2,734,060 shares of the software maker’s stock worth $105,070,000 after acquiring an additional 251,035 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. lifted its position in shares of Open Text by 4.1% during the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 2,499,554 shares of the software maker’s stock worth $96,001,000 after acquiring an additional 98,929 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Open Text in the fourth quarter worth $66,347,000. Hedge funds and other institutional investors own 67.41% of the company’s stock.

Open Text Company Profile

Open Text Corporation provides a suite of software products and services. The company offers content services; digital process automation, which enables organizations to transform into digital and data-driven businesses through automation; and discovery suite that provides forensics and unstructured data analytics for searching, collecting, and investigating enterprise data to manage legal obligations and risk.

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