Open Text’s (OTEX) “Sector Perform” Rating Reiterated at Scotiabank

Scotiabank restated their sector perform rating on shares of Open Text (NASDAQ:OTEX) (TSE:OTC) in a research report sent to investors on Friday, Benzinga reports.

A number of other research firms have also commented on OTEX. Royal Bank of Canada reissued an outperform rating and issued a $53.00 price objective on shares of Open Text in a research note on Friday, February 2nd. StockNews.com lowered shares of Open Text from a buy rating to a hold rating in a report on Friday. Barclays lowered their price objective on shares of Open Text from $44.00 to $38.00 and set an equal weight rating for the company in a research report on Friday. TD Securities reduced their target price on shares of Open Text from $54.00 to $40.00 and set a buy rating on the stock in a research report on Friday. Finally, National Bankshares lowered their price target on shares of Open Text from $60.00 to $50.00 and set an outperform rating for the company in a report on Friday. Seven equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to MarketBeat, Open Text presently has a consensus rating of Hold and an average target price of $42.25.

Open Text Price Performance

NASDAQ OTEX traded down $0.03 during trading on Friday, reaching $30.22. 1,477,069 shares of the company traded hands, compared to its average volume of 652,609. The stock’s 50 day moving average price is $37.32 and its two-hundred day moving average price is $38.77. The company has a debt-to-equity ratio of 2.01, a quick ratio of 1.40 and a current ratio of 1.40. The company has a market cap of $8.25 billion, a price-to-earnings ratio of 48.63 and a beta of 1.11. Open Text has a 1-year low of $28.19 and a 1-year high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, February 1st. The software maker reported $1.11 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.01. Open Text had a net margin of 2.85% and a return on equity of 24.45%. The firm had revenue of $1.53 billion for the quarter, compared to analysts’ expectations of $1.48 billion. As a group, analysts anticipate that Open Text will post 4.14 EPS for the current year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 18th. Stockholders of record on Friday, May 31st will be issued a $0.435 dividend. This is a positive change from Open Text’s previous quarterly dividend of $0.25. The ex-dividend date is Friday, May 31st. This represents a $1.74 annualized dividend and a dividend yield of 5.76%. Open Text’s payout ratio is 161.29%.

Institutional Investors Weigh In On Open Text

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Boston Partners increased its position in shares of Open Text by 0.5% in the fourth quarter. Boston Partners now owns 60,137 shares of the software maker’s stock valued at $2,527,000 after acquiring an additional 318 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in Open Text by 18.0% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock valued at $92,000 after purchasing an additional 334 shares in the last quarter. Chase Investment Counsel Corp increased its position in shares of Open Text by 6.9% during the 1st quarter. Chase Investment Counsel Corp now owns 8,232 shares of the software maker’s stock worth $319,000 after purchasing an additional 528 shares during the last quarter. Allworth Financial LP raised its stake in shares of Open Text by 125.7% during the 3rd quarter. Allworth Financial LP now owns 957 shares of the software maker’s stock worth $34,000 after purchasing an additional 533 shares in the last quarter. Finally, Optiver Holding B.V. acquired a new stake in shares of Open Text in the 4th quarter valued at approximately $27,000. 70.37% of the stock is owned by 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.