Open Text (NASDAQ:OTEX) Stock Price Expected to Rise, Barclays Analyst Says

Key Points

• Barclays raised its price target on Open Text from $27 to $29, implying 14.17% upside from the prior close, while maintaining an “equal weight” rating.
• Analyst sentiment is generally neutral: MarketBeat reports a consensus “Hold” rating and an average price target of $30.72.
• Open Text beat quarterly earnings and revenue estimates, reporting EPS of $1.05 versus $0.94 expected and revenue of $1.24 billion versus $1.22 billion; revenue was down 4% year over year.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC had its price target increased by investment analysts at Barclays from $27.00 to $29.00 in a research note issued on Friday, Benzinga reports. The firm presently has an "equal weight" rating on the software maker's stock. Barclays's price target suggests a potential upside of 14.17% from the company's previous close.

OTEX has been the topic of several other reports. Scotiabank lowered their price target on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating on the stock in a report on Friday, August 7th. Zacks Research raised Open Text from a "strong sell" rating to a "hold" rating in a research report on Monday, October 5th. Citigroup boosted their price objective on Open Text from $25.00 to $28.00 and gave the company a "neutral" rating in a report on Friday, August 7th. Raymond James Financial downgraded Open Text from an "outperform" rating to a "market perform" rating and lowered their target price for the stock from $35.00 to $29.50 in a research note on Thursday, August 6th. Finally, Scotia lowered their target price on Open Text from $40.00 to $33.00 and set a "sector outperform" rating on the stock in a research note on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $30.72.

Open Text Stock Performance

NASDAQ:OTEX traded down $0.72 during midday trading on Friday, hitting $25.40. The company's stock had a trading volume of 449,866 shares, compared to its average volume of 1,929,294. Open Text has a fifty-two week low of $19.77 and a fifty-two week high of $35.65. The firm's 50 day moving average is $24.45 and its 200-day moving average is $23.86. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.81 and a quick ratio of 0.81. The firm has a market cap of $6.13 billion, a P/E ratio of 9.85 and a beta of 0.98.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its quarterly earnings data on Thursday, November 5th. The software maker reported $1.05 EPS for the quarter, beating the consensus estimate of $0.94 by $0.11. The business had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The business's quarterly revenue was down 4.0% compared to the same quarter last year. During the same period in the previous year, the business posted $1.05 EPS. Equities analysts anticipate that Open Text will post 3.72 earnings per share for the current fiscal year.

Institutional Trading of Open Text

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company purchased a new position in Open Text during the second quarter valued at $266,599,000. Cibc World Market Inc. acquired a new stake in shares of Open Text in the second quarter valued at about $70,939,000. BlackRock Inc. acquired a new stake in shares of Open Text in the second quarter valued at about $46,144,000. Canada Pension Plan Investment Board purchased a new stake in shares of Open Text during the second quarter worth about $40,559,000. Finally, Legal & General Group Plc purchased a new stake in shares of Open Text during the second quarter worth about $31,319,000. Institutional investors and hedge funds own 70.37% of the company's stock.

About Open Text

OpenText Corporation is a Canadian enterprise software company that develops solutions for managing, securing and exchanging business information. Its offerings help organizations organize content, automate business processes, connect with customers and partners, and manage information across cloud, on-premises and hybrid environments.

The company's portfolio includes enterprise content management, business network and integration services, customer experience tools, cybersecurity and information governance solutions, and software for managing enterprise applications and information technology operations.

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