StockNews.com Downgrades Open Text (NASDAQ:OTEX) to Buy

Open Text (NASDAQ:OTEX) (TSE:OTC) was downgraded by analysts at StockNews.com from a “strong-buy” rating to a “buy” rating in a report issued on Saturday.

Several other equities research analysts also recently weighed in on the stock. TD Securities reduced their price target on shares of Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a research report on Monday, December 30th. Barclays reduced their target price on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a report on Friday, November 1st. UBS Group initiated coverage on Open Text in a report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 price target on the stock. BMO Capital Markets reduced their price objective on Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st. Finally, Scotiabank lowered their target price on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research note on Friday, November 1st. Nine analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $35.55.

Open Text Stock Down 1.3 %

Shares of NASDAQ:OTEX opened at $27.50 on Friday. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. The stock has a fifty day simple moving average of $29.17 and a two-hundred day simple moving average of $30.93. Open Text has a 12-month low of $26.96 and a 12-month high of $45.47. The stock has a market capitalization of $7.27 billion, a price-to-earnings ratio of 15.90 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.80 by $0.13. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The firm had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.28 billion. During the same quarter in the previous year, the firm earned $0.90 EPS. Open Text’s quarterly revenue was down 11.0% compared to the same quarter last year. On average, research analysts anticipate that Open Text will post 3.37 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Open Text

A number of hedge funds have recently modified their holdings of the business. Blue Trust Inc. lifted its position in Open Text by 435.7% during the third quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock valued at $32,000 after purchasing an additional 793 shares in the last quarter. Kimelman & Baird LLC bought a new position in shares of Open Text in the second quarter worth about $36,000. Cromwell Holdings LLC lifted its position in shares of Open Text by 29.6% during the 3rd quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock valued at $55,000 after buying an additional 380 shares in the last quarter. Essex LLC purchased a new stake in Open Text in the 3rd quarter worth approximately $210,000. Finally, Net Worth Advisory Group bought a new stake in Open Text during the 3rd quarter worth approximately $226,000. Institutional investors 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.