Open Text (NASDAQ:OTEX) Price Target Cut to $38.00 by Analysts at Barclays

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price lowered by Barclays from $44.00 to $38.00 in a research note issued to investors on Friday, MarketBeat.com reports. The firm currently has an equal weight rating on the software maker’s stock.

A number of other analysts also recently commented on OTEX. TD Securities upped their price objective on Open Text from $53.00 to $54.00 and gave the stock a buy rating in a report on Friday, February 2nd. BMO Capital Markets downgraded Open Text from an outperform rating to a market perform rating and cut their price objective for the stock from $50.00 to $38.00 in a report on Friday. StockNews.com upgraded Open Text from a hold rating to a buy rating in a report on Tuesday, February 6th. CIBC raised their price target on shares of Open Text from $42.00 to $44.00 and gave the company a neutral rating in a report on Thursday, January 11th. Finally, Citigroup decreased their price objective on shares of Open Text from $44.00 to $42.00 and set a neutral rating for the company in a research note on Friday, March 22nd. Six equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of Hold and an average price target of $42.25.

Open Text Trading Down 14.7 %

OTEX traded down $5.22 during midday trading on Friday, hitting $30.25. The company’s stock had a trading volume of 3,706,318 shares, compared to its average volume of 728,893. The firm has a market cap of $8.25 billion, a P/E ratio of 48.79 and a beta of 1.11. Open Text has a 52-week low of $28.19 and a 52-week high of $45.47. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 2.10. The firm has a 50-day moving average price of $37.32 and a two-hundred day moving average price of $38.70.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.10 by $0.01. The firm had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.48 billion. Open Text had a net margin of 2.85% and a return on equity of 24.61%. On average, research analysts anticipate that Open Text will post 4.14 earnings per share for the current year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 18th. Shareholders of record on Friday, May 31st will be given a $0.435 dividend. This is a boost from Open Text’s previous quarterly dividend of $0.25. This represents a $1.74 dividend on an annualized basis and a yield of 5.75%. The ex-dividend date of this dividend is Friday, May 31st. Open Text’s dividend payout ratio is presently 161.29%.

Institutional Investors Weigh In On Open Text

Several hedge funds and other institutional investors have recently bought and sold shares of OTEX. Harris Associates L P boosted its stake in shares of Open Text by 1.6% during the 3rd quarter. Harris Associates L P now owns 11,515,807 shares of the software maker’s stock valued at $404,144,000 after buying an additional 177,600 shares during the last quarter. Vanguard Group Inc. raised its holdings in Open Text by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 10,209,098 shares of the software maker’s stock valued at $428,986,000 after acquiring an additional 123,090 shares in the last quarter. FIL Ltd grew its holdings in Open Text by 25.7% during the 4th quarter. FIL Ltd now owns 9,058,024 shares of the software maker’s stock worth $380,696,000 after acquiring an additional 1,853,891 shares in the last quarter. Beutel Goodman & Co Ltd. increased its position in shares of Open Text by 9.9% in the 4th quarter. Beutel Goodman & Co Ltd. now owns 8,661,252 shares of the software maker’s stock worth $365,800,000 after purchasing an additional 782,885 shares during the last quarter. Finally, First Trust Advisors LP raised its stake in shares of Open Text by 1.1% in the 4th 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. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

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.