Royal Bank of Canada Lowers Open Text (NASDAQ:OTEX) Price Target to $31.00

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target reduced by Royal Bank of Canada from $33.00 to $31.00 in a report issued on Friday, MarketBeat.com reports. They currently have a sector perform rating on the software maker’s stock.

A number of other research analysts have also recently weighed in on OTEX. StockNews.com cut shares of Open Text from a “strong-buy” rating to a “buy” rating in a research report on Monday, January 27th. Scotiabank decreased their price target on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research report on Friday, November 1st. TD Securities cut their price objective on Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a research report on Monday, February 3rd. UBS Group began coverage on Open Text in a research note on Tuesday, December 17th. They issued a “neutral” rating and a $32.00 target price for the company. Finally, BMO Capital Markets reduced their price target on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research report on Friday, November 1st. Nine analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Open Text has a consensus rating of “Hold” and an average target price of $35.45.

Open Text Price Performance

OTEX opened at $27.86 on Friday. Open Text has a 1 year low of $26.84 and a 1 year high of $42.17. The company’s 50 day simple moving average is $28.90 and its 200 day simple moving average is $30.64. The stock has a market capitalization of $7.35 billion, a PE ratio of 11.33 and a beta of 1.12. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings results on Thursday, February 6th. The software maker reported $1.02 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.92 by $0.10. Open Text had a return on equity of 23.33% and a net margin of 12.21%. As a group, sell-side analysts expect that Open Text will post 3.37 EPS for the current year.

Open Text Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 21st. Investors of record on Friday, March 7th will be given a dividend of $0.2625 per share. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.77%. The ex-dividend date of this dividend is Friday, March 7th. This is an increase from Open Text’s previous quarterly dividend of $0.26. Open Text’s dividend payout ratio is currently 42.68%.

Institutional Investors Weigh In On Open Text

Several large investors have recently made changes to their positions in the company. Cooke & Bieler LP raised its position in shares of Open Text by 6.6% during the 4th quarter. Cooke & Bieler LP now owns 6,308,967 shares of the software maker’s stock worth $178,670,000 after buying an additional 389,220 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in Open Text by 1.5% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 65,637 shares of the software maker’s stock worth $1,857,000 after purchasing an additional 947 shares during the period. Amundi boosted its stake in Open Text by 15.3% during the 4th quarter. Amundi now owns 526,409 shares of the software maker’s stock valued at $14,671,000 after purchasing an additional 69,686 shares in the last quarter. Scheer Rowlett & Associates Investment Management Ltd. increased its position in shares of Open Text by 34.1% during the 4th quarter. Scheer Rowlett & Associates Investment Management Ltd. now owns 264,108 shares of the software maker’s stock valued at $7,465,000 after purchasing an additional 67,209 shares during the period. Finally, Andra AP fonden raised its stake in shares of Open Text by 386.5% in the 4th quarter. Andra AP fonden now owns 267,600 shares of the software maker’s stock worth $7,578,000 after buying an additional 212,600 shares in the last quarter. Institutional investors and hedge funds 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.