Open Text (NASDAQ:OTEX) Upgraded by Wall Street Zen to Buy Rating

Key Points

• Wall Street Zen upgraded Open Text from “hold” to “buy,” though the broader analyst consensus remains “hold,” with three buys, ten holds and one sell.
• Open Text shares opened at $23.95, compared with an average analyst price target of $32.46; the stock has traded between $19.77 and $39.90 over the past year.
• The company beat quarterly expectations, reporting $1.23 in EPS versus the $1.02 estimate and $1.33 billion in revenue versus $1.29 billion expected. Institutional investors own approximately 70.37% of the shares.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also weighed in on the stock. Citigroup boosted their price objective on shares of Open Text from $25.00 to $28.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Zacks Research lowered shares of Open Text from a "hold" rating to a "strong sell" rating in a report on Friday, August 21st. Raymond James Financial cut shares of Open Text from an "outperform" rating to a "market perform" rating and decreased their target price for the stock from $35.00 to $29.50 in a research report on Thursday, August 6th. Scotia lowered their price target on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating for the company in a research note on Friday, August 7th. Finally, National Bank Financial decreased their price objective on Open Text from $45.00 to $33.00 and set an "outperform" rating on the stock in a report on Wednesday, May 27th. Three research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Open Text presently has a consensus rating of "Hold" and an average target price of $32.46.

Open Text Price Performance

Shares of Open Text stock opened at $23.95 on Friday. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.43. The firm has a market capitalization of $5.80 billion, a PE ratio of 9.28 and a beta of 1.02. The business's 50-day moving average price is $23.95 and its 200-day moving average price is $23.36. Open Text has a 12 month low of $19.77 and a 12 month high of $39.90.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, topping analysts' consensus estimates of $1.02 by $0.21. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.29 billion. Open Text had a return on equity of 25.76% and a net margin of 12.26%.Open Text's quarterly revenue was up 2.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.97 EPS. Sell-side analysts forecast that Open Text will post 3.72 EPS for the current fiscal year.

Institutional Investors Weigh In On Open Text

Several hedge funds and other institutional investors have recently added to or reduced their stakes in OTEX. Goldman Sachs Group Inc. boosted its holdings in shares of Open Text by 75.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker's stock valued at $36,307,000 after buying an additional 619,527 shares in the last quarter. United Services Automobile Association bought a new stake in shares of Open Text in the 1st quarter worth approximately $213,000. EverSource Wealth Advisors LLC grew its stake in shares of Open Text by 39.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker's stock worth $59,000 after buying an additional 570 shares during the last quarter. Cerity Partners LLC grew its stake in shares of Open Text by 3.4% in the 2nd quarter. Cerity Partners LLC now owns 49,003 shares of the software maker's stock worth $1,431,000 after buying an additional 1,612 shares during the last quarter. Finally, Qube Research & Technologies Ltd increased its position in Open Text by 16.8% during the 2nd quarter. Qube Research & Technologies Ltd now owns 46,500 shares of the software maker's stock valued at $1,360,000 after buying an additional 6,700 shares in the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Company Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company's platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text's product suite includes content services, business process management, customer experience management, analytics and security products.

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