Open Text (NASDAQ:OTEX) Cut to Sector Perform at Royal Bank of Canada

Royal Bank of Canada downgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from an outperform rating to a sector perform rating in a research note published on Friday morning, Marketbeat Ratings reports. Royal Bank of Canada currently has $33.00 price objective on the software maker’s stock, down from their prior price objective of $45.00.

A number of other research firms have also weighed in on OTEX. Barclays cut their price objective on shares of Open Text from $38.00 to $36.00 and set an “equal weight” rating for the company in a research report on Monday, August 5th. CIBC cut their price target on Open Text from $36.00 to $33.00 and set a “neutral” rating for the company in a report on Friday, July 19th. National Bankshares cut Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price objective on the stock. in a report on Friday, August 2nd. National Bank Financial lowered Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. Finally, Citigroup raised their price target on Open Text from $32.00 to $34.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 25th. Eight equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $35.90.

Open Text Price Performance

Shares of NASDAQ:OTEX opened at $28.98 on Friday. Open Text has a one year low of $27.50 and a one year high of $45.47. The stock has a market cap of $7.70 billion, a PE ratio of 16.75 and a beta of 1.13. The business’s fifty day moving average price is $32.73 and its two-hundred day moving average price is $31.54. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.81 and a current ratio of 0.81.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, August 1st. The software maker reported $0.98 EPS for the quarter, topping analysts’ consensus estimates of $0.93 by $0.05. The firm had revenue of $1.36 billion during the quarter, compared to analysts’ expectations of $1.41 billion. Open Text had a return on equity of 24.37% and a net margin of 8.35%. The firm’s quarterly revenue was down 8.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.79 EPS. On average, analysts forecast that Open Text will post 3.23 EPS for the current fiscal year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 20th. Stockholders of record on Friday, November 29th will be issued a $0.262 dividend. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.62%. This is an increase from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Friday, November 29th. Open Text’s dividend payout ratio (DPR) is 60.69%.

Institutional Trading of Open Text

Institutional investors have recently modified their holdings of the company. Headlands Technologies LLC purchased a new position in Open Text in the first quarter valued at approximately $32,000. Blue Trust Inc. increased its position in shares of Open Text by 435.7% in the third quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock worth $32,000 after acquiring an additional 793 shares in the last quarter. Ridgewood Investments LLC purchased a new position in shares of Open Text in the 2nd quarter valued at $30,000. Kimelman & Baird LLC acquired a new position in shares of Open Text during the 2nd quarter valued at $36,000. Finally, Cromwell Holdings LLC boosted its position in Open Text by 29.6% during the 3rd quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock worth $55,000 after purchasing an additional 380 shares during the period. 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.