Zacks Research Upgrades Open Text (NASDAQ:OTEX) to Hold

Key Points

• Zacks Research upgraded Open Text from “strong sell” to “hold,” while the broader analyst consensus remains “Hold,” with three Buy ratings and ten Hold ratings.
• Open Text shares opened at $22.71, below the consensus analyst price target of $30.95. The stock has traded between $19.77 and $39.90 over the past year.
• The company exceeded quarterly expectations, reporting $1.23 in EPS versus a $1.02 estimate and $1.33 billion in revenue, up 2.9% year over year; institutional investors own 70.37% of its shares.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a note issued to investors on Monday, Zacks reports.

Several other analysts have also recently issued reports on OTEX. Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, September 5th. UBS Group lifted their price objective on Open Text from $25.00 to $27.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Scotia reduced 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. Citigroup raised their price target on Open Text from $25.00 to $28.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Finally, Scotiabank dropped their target price on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating for the company in a research report on Friday, August 7th. Three research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $30.95.

Open Text Stock Up 0.9%

Shares of NASDAQ OTEX opened at $22.71 on Monday. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.43. Open Text has a 52 week low of $19.77 and a 52 week high of $39.90. The firm's fifty day moving average is $23.96 and its 200 day moving average is $23.13. The company has a market cap of $5.49 billion, a price-to-earnings ratio of 8.80 and a beta of 1.01.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its quarterly earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.21. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The business had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter last year, the firm earned $0.97 EPS. The company's revenue was up 2.9% on a year-over-year basis. On average, equities research analysts expect that Open Text will post 3.72 earnings per share for the current year.

Institutional Trading of Open Text

A number of hedge funds have recently modified their holdings of OTEX. Ridgewood Investments LLC increased its stake in shares of Open Text by 1.4% in the 3rd quarter. Ridgewood Investments LLC now owns 67,238 shares of the software maker's stock worth $1,507,000 after acquiring an additional 936 shares in the last quarter. Sequoia Financial Advisors LLC grew its holdings in Open Text by 8.3% in the second quarter. Sequoia Financial Advisors LLC now owns 17,506 shares of the software maker's stock worth $388,000 after purchasing an additional 1,337 shares during the period. Tidal Investments LLC grew its holdings in Open Text by 797.0% in the second quarter. Tidal Investments LLC now owns 300,997 shares of the software maker's stock worth $6,667,000 after purchasing an additional 267,440 shares during the period. Engineers Gate Manager LP increased its stake in shares of Open Text by 807.5% during the second quarter. Engineers Gate Manager LP now owns 88,032 shares of the software maker's stock valued at $1,950,000 after purchasing an additional 78,332 shares in the last quarter. Finally, Nykredit A S purchased a new position in shares of Open Text during the second quarter valued at approximately $179,000. Institutional investors own 70.37% of the company's stock.

Open Text Company Profile

OpenText Corporation NASDAQ: OTEX is a Canadian enterprise software company that provides information management solutions for organizations worldwide. Its products help businesses create, capture, manage, secure, exchange and analyze content and data across digital operations.

The company's portfolio includes enterprise content management, business process management, customer experience management, secure file transfer, cybersecurity, IT operations management, analytics and developer tools.

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