Open Text (NASDAQ:OTEX) Price Target Cut to $48.00 by Analysts at Raymond James

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price objective reduced by Raymond James from $55.00 to $48.00 in a report issued on Friday morning, BayStreet.CA reports. They currently have an outperform rating on the software maker’s stock.

A number of other brokerages have also weighed in on OTEX. Barclays dropped their price objective on shares of Open Text from $44.00 to $38.00 and set an equal weight rating on the stock in a report on Friday. TD Securities dropped their price target on Open Text from $54.00 to $40.00 and set a buy rating on the stock in a research note on Friday. BMO Capital Markets downgraded Open Text from an outperform rating to a market perform rating and decreased their target price for the stock from $50.00 to $38.00 in a report on Friday. Royal Bank of Canada reiterated an outperform rating and issued a $53.00 price target on shares of Open Text in a report on Friday, February 2nd. Finally, StockNews.com upgraded shares of Open Text from a hold rating to a buy rating in a research note on Tuesday, February 6th. Six investment analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat, Open Text has a consensus rating of Hold and a consensus target price of $42.25.

Open Text Stock Down 14.7 %

OTEX stock traded down $5.22 on Friday, hitting $30.25. 3,706,318 shares of the company’s stock were exchanged, compared to its average volume of 728,893. The firm has a 50 day moving average price of $37.32 and a two-hundred day moving average price of $38.70. The company has a debt-to-equity ratio of 2.10, a quick ratio of 1.38 and a current ratio of 1.38. Open Text has a 12-month low of $28.19 and a 12-month high of $45.47. The stock has a market cap of $8.25 billion, a P/E ratio of 48.79 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.10 by $0.01. The firm had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.48 billion. Open Text had a net margin of 2.85% and a return on equity of 24.61%. As a group, equities research analysts expect that Open Text will post 4.14 EPS for the current fiscal year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 18th. Stockholders of record on Friday, May 31st will be paid a dividend of $0.435 per share. This is a positive change from Open Text’s previous quarterly dividend of $0.25. This represents a $1.74 annualized dividend and a dividend yield of 5.75%. The ex-dividend date is Friday, May 31st. Open Text’s dividend payout ratio is presently 161.29%.

Hedge Funds Weigh In On Open Text

A number of large investors have recently bought and sold shares of OTEX. Norges Bank purchased a new position in shares of Open Text during the 4th quarter valued at approximately $139,600,000. Clearbridge Investments LLC purchased a new stake in Open Text during the 4th quarter worth approximately $117,627,000. FIL Ltd lifted its position in shares of Open Text by 25.7% in the fourth quarter. FIL Ltd now owns 9,058,024 shares of the software maker’s stock valued at $380,696,000 after acquiring an additional 1,853,891 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec acquired a new stake in shares of Open Text in the third quarter worth approximately $49,856,000. Finally, The Manufacturers Life Insurance Company increased its position in shares of Open Text by 73.6% during the fourth quarter. The Manufacturers Life Insurance Company now owns 1,852,184 shares of the software maker’s stock worth $77,970,000 after purchasing an additional 785,157 shares in the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

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.