Open Text (NASDAQ:OTEX) Given New $38.00 Price Target at TD Securities

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price objective decreased by TD Securities from $40.00 to $38.00 in a research report sent to investors on Friday morning, BayStreet.CA reports. TD Securities currently has a buy rating on the software maker’s stock.

Several other equities research analysts also recently issued reports on the company. Royal Bank of Canada downgraded Open Text from an “outperform” rating to a “sector perform” rating and dropped their price objective for the stock from $45.00 to $33.00 in a report on Friday. CIBC dropped their price objective on Open Text from $36.00 to $33.00 and set a “neutral” rating on the stock in a report on Friday, July 19th. Jefferies Financial Group dropped their price objective on Open Text from $42.00 to $35.00 and set a “buy” rating on the stock in a report on Friday, August 2nd. Barclays dropped their price objective on Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, National Bank Financial downgraded Open Text from an “outperform” rating to a “sector perform” rating in a report on Friday, August 2nd. Eight analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat.com, Open Text has a consensus rating of “Hold” and a consensus price target of $35.90.

Open Text Stock Down 3.4 %

Shares of NASDAQ:OTEX traded down $1.02 during mid-day trading on Friday, hitting $28.98. 1,397,525 shares of the company traded hands, compared to its average volume of 635,531. The firm has a market cap of $7.70 billion, a P/E ratio of 16.95 and a beta of 1.12. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.81 and a current ratio of 0.81. Open Text has a 52-week low of $27.50 and a 52-week high of $45.47. The firm’s 50 day simple moving average is $32.73 and its 200 day simple moving average is $31.58.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, August 1st. The software maker reported $0.98 EPS for the quarter, beating the consensus estimate of $0.93 by $0.05. The business 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 25.00% and a net margin of 8.06%. The company’s revenue was down 8.6% on a year-over-year basis. During the same period last year, the business posted $0.79 EPS. On average, equities analysts anticipate that Open Text will post 3.23 EPS for the current year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be given a dividend of $0.262 per share. The ex-dividend date of this dividend is Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a yield of 3.62%. This is a positive change from Open Text’s previous quarterly dividend of $0.19. Open Text’s payout ratio is currently 61.40%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in OTEX. Tobam boosted its position in Open Text by 102.3% during the 1st quarter. Tobam now owns 6,474 shares of the software maker’s stock worth $251,000 after acquiring an additional 3,274 shares during the period. Chase Investment Counsel Corp boosted its position in Open Text by 6.9% during the 1st quarter. Chase Investment Counsel Corp now owns 8,232 shares of the software maker’s stock worth $319,000 after acquiring an additional 528 shares during the period. Lorne Steinberg Wealth Management Inc. boosted its position in Open Text by 1.9% during the 1st quarter. Lorne Steinberg Wealth Management Inc. now owns 119,990 shares of the software maker’s stock worth $4,657,000 after acquiring an additional 2,275 shares during the period. Easterly Investment Partners LLC boosted its position in Open Text by 1.7% during the 1st quarter. Easterly Investment Partners LLC now owns 334,221 shares of the software maker’s stock worth $12,978,000 after acquiring an additional 5,657 shares during the period. Finally, Essex LLC acquired a new position in Open Text during the 1st quarter worth $250,000. Institutional investors and hedge funds 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.