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

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price cut by investment analysts at Royal Bank of Canada from $33.00 to $31.00 in a note issued to investors on Friday,BayStreet.CA reports. The brokerage presently has a “sector perform” rating on the software maker’s stock. Royal Bank of Canada’s target price indicates a potential upside of 10.81% from the company’s previous close.

Several other research firms have also weighed in on OTEX. Scotiabank dropped their price target on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research report on Friday, November 1st. Barclays dropped their price objective on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a research note on Friday, November 1st. BMO Capital Markets reduced their target price on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a research note on Friday, November 1st. Citigroup increased their target price on shares of Open Text from $30.00 to $32.00 and gave the stock a “neutral” rating in a research report on Friday. Finally, TD Securities decreased their price target on Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a research note on Monday. Nine equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, Open Text currently has an average rating of “Hold” and a consensus price target of $35.27.

Open Text Stock Down 5.3 %

Shares of OTEX stock traded down $1.56 during trading hours on Friday, hitting $27.98. 1,015,689 shares of the company were exchanged, compared to its average volume of 605,493. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79. The stock has a market capitalization of $7.38 billion, a price-to-earnings ratio of 16.15 and a beta of 1.12. Open Text has a one year low of $26.84 and a one year high of $42.17. The business’s 50-day simple moving average is $28.90 and its two-hundred day simple moving average is $30.64.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, February 6th. The software maker reported $1.02 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.10. Open Text had a net margin of 8.35% and a return on equity of 24.34%. Sell-side analysts predict that Open Text will post 3.37 EPS for the current fiscal year.

Institutional Investors Weigh In On Open Text

Hedge funds have recently modified their holdings of the business. Toronto Dominion Bank raised its position in Open Text by 169.6% in the 3rd quarter. Toronto Dominion Bank now owns 576,105 shares of the software maker’s stock valued at $19,173,000 after buying an additional 362,422 shares during the last quarter. Crossmark Global Holdings Inc. increased its stake in shares of Open Text by 1,290.4% during the third quarter. Crossmark Global Holdings Inc. now owns 336,790 shares of the software maker’s stock worth $11,209,000 after purchasing an additional 312,567 shares during the period. AustralianSuper Pty Ltd acquired a new position in Open Text in the 3rd quarter valued at $8,011,000. Andra AP fonden boosted its position in shares of Open Text by 386.5% in the fourth quarter. Andra AP fonden now owns 267,600 shares of the software maker’s stock valued at $7,578,000 after acquiring an additional 212,600 shares during the period. Finally, Access Investment Management LLC acquired a new stake in Open Text in the 3rd quarter worth about $6,509,000. 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.