Barclays Cuts Open Text (NASDAQ:OTEX) Price Target to $34.00

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target lowered by Barclays from $36.00 to $34.00 in a research report sent to investors on Friday morning, Benzinga reports. The firm currently has an equal weight rating on the software maker’s stock.

OTEX has been the subject of a number of other research reports. Royal Bank of Canada downgraded shares of Open Text from an “outperform” rating to a “sector perform” rating and cut their target price for the stock from $45.00 to $33.00 in a research report on Friday. Jefferies Financial Group cut their price objective on Open Text from $42.00 to $35.00 and set a “buy” rating for the company in a report on Friday, August 2nd. 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 research report on Friday, August 2nd. BMO Capital Markets dropped their target price on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research report on Friday. Finally, CIBC reduced their price target on Open Text from $36.00 to $33.00 and set a “neutral” rating for the company in a report on Friday, July 19th. Eight investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat, Open Text presently has a consensus rating of “Hold” and a consensus target price of $35.90.

Open Text Stock Performance

Shares of OTEX stock opened at $28.98 on Friday. The stock’s fifty day simple moving average is $32.73 and its 200-day simple moving average is $31.54. The company has a market capitalization of $7.70 billion, a price-to-earnings ratio of 16.75 and a beta of 1.13. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.51. Open Text has a 1-year low of $27.50 and a 1-year high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, August 1st. The software maker reported $0.98 earnings per share for the quarter, beating analysts’ consensus estimates of $0.93 by $0.05. The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.41 billion. Open Text had a return on equity of 24.37% and a net margin of 8.35%. The firm’s quarterly revenue was down 8.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.79 EPS. On average, sell-side analysts predict that Open Text will post 3.23 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 20th. Shareholders of record on Friday, November 29th will be given a dividend of $0.262 per share. The ex-dividend date is Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a yield of 3.62%. This is a boost from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio is presently 60.69%.

Hedge Funds Weigh In On Open Text

A number of institutional investors have recently modified their holdings of OTEX. Ridgewood Investments LLC bought a new stake in shares of Open Text during the 2nd quarter worth $30,000. Headlands Technologies LLC acquired a new position in Open Text during the 1st quarter worth $32,000. Blue Trust Inc. boosted its holdings in Open Text by 435.7% during the third quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock valued at $32,000 after acquiring an additional 793 shares during the period. Kimelman & Baird LLC acquired a new stake in shares of Open Text in the second quarter valued at about $36,000. Finally, Cromwell Holdings LLC increased its stake in shares of Open Text by 29.6% in the third quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock worth $55,000 after purchasing an additional 380 shares during the period. Institutional investors own 70.37% of the company’s stock.

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.