Open Text (NASDAQ:OTEX) Stock Rating Lowered by BMO Capital Markets

BMO Capital Markets lowered shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from an outperform rating to a market perform rating in a research report released on Friday morning, Marketbeat Ratings reports. BMO Capital Markets currently has $38.00 price objective on the software maker’s stock, down from their previous price objective of $50.00.

Other equities analysts have also issued research reports about the stock. TD Securities raised their price objective on shares of Open Text from $53.00 to $54.00 and gave the company a buy rating in a research report on Friday, February 2nd. CIBC raised their price objective on shares of Open Text from $42.00 to $44.00 and gave the company a neutral rating in a research report on Thursday, January 11th. StockNews.com upgraded shares of Open Text from a hold rating to a buy rating in a research report on Tuesday, February 6th. Citigroup reduced 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 report on Friday, March 22nd. Finally, Royal Bank of Canada restated an outperform rating and set a $53.00 price objective on shares of Open Text in a research report on Friday, February 2nd. Six research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat.com, Open Text has a consensus rating of Hold and an average target price of $42.25.

Open Text Stock Down 14.7 %

Open Text stock opened at $30.25 on Friday. The stock has a market cap of $8.25 billion, a price-to-earnings ratio of 48.79 and a beta of 1.11. 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 company’s 50-day moving average price is $37.32 and its two-hundred day moving average price is $38.77. Open Text has a 52 week low of $28.19 and a 52 week high of $45.47.

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

Open Text Increases Dividend

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

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its position in Open Text by 1.6% during the third quarter. Vanguard Group Inc. now owns 10,086,008 shares of the software maker’s stock valued at $354,019,000 after purchasing an additional 154,240 shares in the last quarter. Qube Research & Technologies Ltd purchased a new position in Open Text during the third quarter valued at approximately $2,630,000. Vontobel Holding Ltd. grew its position in Open Text by 182.1% during the fourth quarter. Vontobel Holding Ltd. now owns 37,176 shares of the software maker’s stock valued at $1,563,000 after purchasing an additional 24,000 shares in the last quarter. Value Partners Investments Inc. grew its position in Open Text by 16.3% during the fourth quarter. Value Partners Investments Inc. now owns 2,046,243 shares of the software maker’s stock valued at $85,983,000 after purchasing an additional 286,766 shares in the last quarter. Finally, Canada Pension Plan Investment Board grew its position in Open Text by 7.1% during the third quarter. Canada Pension Plan Investment Board now owns 837,880 shares of the software maker’s stock valued at $29,543,000 after purchasing an additional 55,360 shares in the last quarter. 70.37% of the stock is 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.