Open Text (NASDAQ:OTEX) Downgraded to Sector Perform at National Bankshares

National Bankshares downgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from an outperform rating to a sector perform rating in a research note released on Friday morning, BayStreet.CA reports. They currently have $38.00 target price on the software maker’s stock.

A number of other equities research analysts have also weighed in on the company. National Bank Financial lowered Open Text from an outperform rating to a sector perform rating in a research note on Friday. Barclays lowered their target price on Open Text from $44.00 to $38.00 and set an equal weight rating for the company in a research note on Friday, May 3rd. Citigroup lowered their target price on Open Text from $37.00 to $32.00 and set a neutral rating for the company in a research note on Wednesday, June 26th. Jefferies Financial Group lowered their price target on Open Text from $45.00 to $42.00 and set a buy rating for the company in a research report on Friday, May 3rd. Finally, Scotiabank reaffirmed a sector perform rating on shares of Open Text in a research report on Friday, May 3rd. Eight equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat.com, Open Text has an average rating of Hold and a consensus target price of $38.80.

Open Text Price Performance

OTEX stock traded down $2.00 during mid-day trading on Friday, hitting $28.49. 1,139,908 shares of the stock were exchanged, compared to its average volume of 580,666. Open Text has a 12 month low of $27.54 and a 12 month high of $45.47. The company has a debt-to-equity ratio of 2.01, a current ratio of 1.40 and a quick ratio of 1.40. The business has a fifty day moving average price of $30.01 and a 200 day moving average price of $34.86. The stock has a market capitalization of $7.63 billion, a price-to-earnings ratio of 45.95 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, May 2nd. The software maker reported $0.84 earnings per share for the quarter, beating analysts’ consensus estimates of $0.81 by $0.03. Open Text had a return on equity of 25.22% and a net margin of 8.06%. The company had revenue of $1.45 billion during the quarter, compared to analyst estimates of $1.43 billion. On average, sell-side analysts anticipate that Open Text will post 3.18 EPS for the current year.

Open Text Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 20th. Shareholders of record on Friday, August 30th will be issued a dividend of $0.192 per share. The ex-dividend date is Friday, August 30th. This represents a $0.77 dividend on an annualized basis and a dividend yield of 2.70%. Open Text’s dividend payout ratio (DPR) is 161.29%.

Institutional Trading of Open Text

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Boston Partners grew its stake in shares of Open Text by 0.5% in the 4th quarter. Boston Partners now owns 60,137 shares of the software maker’s stock worth $2,527,000 after buying an additional 318 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of Open Text by 18.0% in the 4th quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock worth $92,000 after buying an additional 334 shares during the last quarter. Chase Investment Counsel Corp boosted its stake 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 valued at $319,000 after purchasing an additional 528 shares during the last quarter. Optiver Holding B.V. purchased a new stake in Open Text during the 4th quarter valued at $27,000. Finally, Headlands Technologies LLC purchased a new stake in Open Text during the 1st quarter valued at $32,000. Hedge funds and other 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.