Royal Bank of Canada Issues Pessimistic Forecast for Open Text (NASDAQ:OTEX) Stock Price

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target reduced by Royal Bank of Canada from $31.00 to $30.00 in a research report sent to investors on Tuesday morning,BayStreet.CA reports. Royal Bank of Canada currently has a sector perform rating on the software maker’s stock.

Several other research analysts also recently weighed in on the company. Barclays cut their price target on Open Text from $36.00 to $29.00 and set an “equal weight” rating for the company in a report on Monday. StockNews.com downgraded shares of Open Text from a “strong-buy” rating to a “buy” rating in a research report on Monday, January 27th. TD Securities lowered their price objective on shares of Open Text from $38.00 to $35.00 and set a “buy” rating for the company in a research report on Sunday, February 9th. Finally, Citigroup upped their price target on shares of Open Text from $30.00 to $32.00 and gave the stock a “neutral” rating in a research report on Friday, February 7th. Nine investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $34.45.

Open Text Stock Performance

Shares of OTEX opened at $26.87 on Tuesday. The stock has a market capitalization of $6.98 billion, a P/E ratio of 10.92 and a beta of 1.13. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.87 and a current ratio of 0.87. Open Text has a 1 year low of $22.79 and a 1 year high of $36.25. The company’s fifty day moving average is $25.78 and its two-hundred day moving average is $28.44.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, February 6th. The software maker reported $1.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.10. Open Text had a return on equity of 23.23% and a net margin of 12.21%. On average, sell-side analysts predict that Open Text will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 21st. Stockholders of record on Friday, March 7th were given a dividend of $0.2625 per share. The ex-dividend date was Friday, March 7th. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.91%. This is a positive change 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 institutional investors and hedge funds have recently bought and sold shares of the business. Geode Capital Management LLC boosted its position in Open Text by 4.6% in the third quarter. Geode Capital Management LLC now owns 1,397,853 shares of the software maker’s stock valued at $46,460,000 after buying an additional 61,696 shares in the last quarter. Wilmington Savings Fund Society FSB acquired a new position in shares of Open Text during the third quarter worth about $499,000. Franklin Resources Inc. raised its position in Open Text by 19.9% in the 3rd quarter. Franklin Resources Inc. now owns 205,891 shares of the software maker’s stock valued at $7,086,000 after buying an additional 34,135 shares during the last quarter. Assenagon Asset Management S.A. raised its holdings in shares of Open Text by 5.6% in the fourth quarter. Assenagon Asset Management S.A. now owns 19,921 shares of the software maker’s stock valued at $563,000 after purchasing an additional 1,049 shares during the last quarter. Finally, Wedge Capital Management L L P NC acquired a new position in Open Text during the fourth quarter worth $2,372,000. 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.