TD Securities Issues Pessimistic Forecast for Open Text (NASDAQ:OTEX) Stock Price

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target cut by TD Securities from $40.00 to $38.00 in a research note published on Friday morning, BayStreet.CA reports. They currently have a buy rating on the software maker’s stock.

A number of other brokerages have also issued reports on OTEX. National Bankshares lowered Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 target price on the stock. in a research report on Friday, August 2nd. BMO Capital Markets dropped their price target on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research report on Friday. CIBC dropped their price target on Open Text from $36.00 to $33.00 and set a “neutral” rating on the stock in a research report on Friday, July 19th. Royal Bank of Canada lowered Open Text from an “outperform” rating to a “sector perform” rating and dropped their price target for the company from $45.00 to $33.00 in a research report on Friday. Finally, Jefferies Financial Group dropped their price target on Open Text from $42.00 to $35.00 and set a “buy” rating on the stock in a research report on Friday, August 2nd. Eight equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, Open Text has an average rating of “Hold” and an average target price of $35.90.

Open Text Price Performance

Shares of OTEX traded down $1.02 during midday trading on Friday, reaching $28.98. The stock had a trading volume of 1,397,525 shares, compared to its average volume of 635,531. Open Text has a 52 week low of $27.50 and a 52 week high of $45.47. The company has a debt-to-equity ratio of 1.51, a current ratio of 0.81 and a quick ratio of 0.81. The firm’s 50 day moving average price is $32.73 and its 200-day moving average price is $31.58. The company has a market capitalization of $7.70 billion, a P/E ratio of 16.95 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, August 1st. The software maker reported $0.98 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.93 by $0.05. The company had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.41 billion. Open Text had a return on equity of 25.00% and a net margin of 8.06%. Open Text’s revenue for the quarter was down 8.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.79 earnings per share. On average, analysts forecast that Open Text will post 3.23 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be issued a $0.262 dividend. This is a positive change from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 annualized dividend and a yield of 3.62%. The ex-dividend date is Friday, November 29th. Open Text’s payout ratio is 61.40%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Ridgewood Investments LLC bought a new position in Open Text in the 2nd quarter worth $30,000. Headlands Technologies LLC bought a new position in Open Text in the 1st quarter worth $32,000. Blue Trust Inc. raised its holdings 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 acquiring an additional 793 shares during the period. Kimelman & Baird LLC bought a new position in Open Text in the 2nd quarter worth $36,000. Finally, Cromwell Holdings LLC raised its holdings 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 acquiring an additional 380 shares during the period. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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.