BMO Capital Markets Trims Open Text (NASDAQ:OTEX) Target Price to $33.00

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target reduced by BMO Capital Markets from $38.00 to $33.00 in a research note released on Friday, BayStreet.CA reports. They currently have a market perform rating on the software maker’s stock.

Several other equities analysts have also recently issued reports on the company. Jefferies Financial Group decreased their price objective on Open Text from $45.00 to $42.00 and set a buy rating for the company in a report on Friday, May 3rd. StockNews.com raised Open Text from a hold rating to a buy rating in a report on Saturday, May 11th. Raymond James decreased their price objective on Open Text from $55.00 to $48.00 and set an outperform rating for the company in a report on Friday, May 3rd. Barclays decreased their price objective on Open Text from $44.00 to $38.00 and set an equal weight rating for the company in a report on Friday, May 3rd. Finally, National Bankshares cut Open Text from an outperform rating to a sector perform rating and set a $38.00 price objective for the company. in a report on Friday. Eight research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of Hold and an average target price of $38.80.

Open Text Stock Performance

OTEX traded up $0.54 on Friday, reaching $29.03. 439,336 shares of the stock were exchanged, compared to its average volume of 665,425. The company’s 50-day moving average price is $30.01 and its 200 day moving average price is $34.78. Open Text has a fifty-two week low of $27.54 and a fifty-two week high of $45.47. The company has a debt-to-equity ratio of 2.01, a current ratio of 1.40 and a quick ratio of 1.40. The firm has a market capitalization of $7.77 billion, a PE ratio of 46.44 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, August 1st. The software maker reported $0.98 EPS for the quarter, topping analysts’ consensus estimates of $0.93 by $0.05. Open Text had a return on equity of 25.22% and a net margin of 8.06%. The company had revenue of $1.36 billion during the quarter, compared to analysts’ expectations of $1.41 billion. During the same quarter in the previous year, the firm posted $0.79 EPS. The firm’s revenue was down 8.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Open Text will post 3.18 EPS for the current fiscal year.

Open Text Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 20th. Shareholders of record on Friday, August 30th will be paid a dividend of $0.192 per share. The ex-dividend date of this dividend is Friday, August 30th. This represents a $0.77 annualized dividend and a yield of 2.65%. Open Text’s dividend payout ratio (DPR) is currently 161.29%.

Institutional Investors Weigh In On Open Text

A number of large investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in shares of Open Text by 1.3% in the first quarter. Vanguard Group Inc. now owns 10,344,910 shares of the software maker’s stock valued at $401,693,000 after purchasing an additional 135,812 shares in the last quarter. FIL Ltd grew 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 purchasing an additional 1,853,891 shares in the last quarter. Beutel Goodman & Co Ltd. grew its position in shares of Open Text by 9.9% in the fourth quarter. Beutel Goodman & Co Ltd. now owns 8,661,252 shares of the software maker’s stock valued at $365,800,000 after purchasing an additional 782,885 shares in the last quarter. First Trust Advisors LP grew its position in shares of Open Text by 1.1% in the fourth quarter. First Trust Advisors LP now owns 6,965,317 shares of the software maker’s stock valued at $292,817,000 after purchasing an additional 74,481 shares in the last quarter. Finally, Cooke & Bieler LP grew its position in shares of Open Text by 18.6% in the second quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock valued at $166,325,000 after purchasing an additional 867,978 shares in the last quarter. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

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.