Citigroup Has Lowered Expectations for Open Text (NASDAQ:OTEX) Stock Price

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price reduced by Citigroup from $34.00 to $33.00 in a research note published on Friday, BayStreet.CA reports. Citigroup currently has a neutral rating on the software maker’s stock.

Other equities analysts have also issued reports about the company. BMO Capital Markets reduced their price objective on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research note on Friday. CIBC reduced their price objective on Open Text from $36.00 to $33.00 and set a “neutral” rating on the stock in a research note on Friday, July 19th. National Bank Financial lowered Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. Barclays reduced their price objective on Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a research note on Friday. Finally, National Bankshares lowered Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price objective on the stock. in a research note on Friday, August 2nd. Eight investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $35.90.

Open Text Trading Down 3.4 %

Open Text stock opened at $28.98 on Friday. The stock has a market cap of $7.70 billion, a PE ratio of 16.75 and a beta of 1.13. The stock has a 50-day moving average price of $32.73 and a 200 day moving average price of $31.54. Open Text has a 52 week low of $27.50 and a 52 week high of $45.47. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.51.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly 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. Open Text had a return on equity of 24.37% and a net margin of 8.35%. The firm had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.41 billion. During the same period last year, the company earned $0.79 EPS. The firm’s quarterly revenue was down 8.6% on a year-over-year basis. Equities research analysts predict that Open Text will post 3.23 earnings per share for the current fiscal year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be given a dividend of $0.262 per share. This represents a $1.05 annualized dividend and a yield of 3.62%. This is a positive change from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date is Friday, November 29th. Open Text’s payout ratio is presently 60.69%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. JARISLOWSKY FRASER Ltd grew its stake in Open Text by 5.1% in the second quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock valued at $471,415,000 after purchasing an additional 767,822 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of Open Text by 1.3% during the 1st quarter. Vanguard Group Inc. now owns 10,344,910 shares of the software maker’s stock worth $401,693,000 after acquiring an additional 135,812 shares in the last quarter. The Manufacturers Life Insurance Company boosted its stake in shares of Open Text by 25.1% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock worth $167,277,000 after acquiring an additional 1,118,479 shares in the last quarter. Cooke & Bieler LP boosted its stake in shares of Open Text by 18.6% during the 2nd quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock worth $166,325,000 after acquiring an additional 867,978 shares in the last quarter. Finally, National Bank of Canada FI boosted its stake in shares of Open Text by 17.5% during the 2nd quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock worth $120,390,000 after acquiring an additional 599,790 shares in the last quarter. Hedge funds and other institutional investors own 70.37% of the company’s stock.

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.