TD Securities Downgrades Open Text (NASDAQ:OTEX) to Hold

Key Points

• TD Securities has downgraded Open Text from a "buy" to a "hold" rating, while raising the target price to $40.00, indicating a potential upside of 6.21% from its previous close.
• The company's latest quarterly earnings showed $0.97 earnings per share, surpassing the consensus estimate of $0.86, but its revenue decreased by 3.8% year-over-year.
• Currently, the stock has a consensus rating of "Hold" from analysts, with recommendations varying from "Buy" to "Sell" among different firms.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC was downgraded by stock analysts at TD Securities from a "buy" rating to a "hold" rating in a research note issued to investors on Friday, Marketbeat.com reports. They currently have a $40.00 target price on the software maker's stock, up from their previous target price of $35.00. TD Securities' target price points to a potential upside of 6.21% from the stock's previous close.

OTEX has been the subject of several other reports. Barclays reissued a "positive" rating on shares of Open Text in a research note on Friday, August 8th. National Bank Financial raised Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 target price for the company in a research report on Monday, September 15th. Jefferies Financial Group cut Open Text from a "buy" rating to a "hold" rating and set a $33.00 price objective for the company. in a research report on Tuesday, August 12th. Scotiabank raised Open Text from a "sector perform" rating to an "outperform" rating and lifted their price objective for the company from $35.00 to $50.00 in a research report on Wednesday, September 24th. Finally, CIBC reissued a "neutral" rating on shares of Open Text in a research report on Monday, August 11th. Four analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $37.00.

Open Text Trading Up 1.4%

Shares of OTEX stock opened at $37.66 on Friday. The stock has a 50-day simple moving average of $33.27 and a 200 day simple moving average of $29.43. Open Text has a fifty-two week low of $22.79 and a fifty-two week high of $39.04. The stock has a market capitalization of $9.52 billion, a P/E ratio of 22.82 and a beta of 1.17. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.61.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its quarterly earnings data on Thursday, August 7th. The software maker reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.11. The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.30 billion. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The company's revenue was down 3.8% compared to the same quarter last year. During the same period last year, the company posted $0.98 EPS. On average, sell-side analysts expect that Open Text will post 3.45 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Open Text

A number of institutional investors have recently added to or reduced their stakes in the company. Osaic Holdings Inc. grew its position in Open Text by 108.8% during the second quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker's stock worth $52,000 after buying an additional 937 shares in the last quarter. Centaurus Financial Inc. acquired a new stake in Open Text during the second quarter valued at approximately $114,000. Headlands Technologies LLC boosted its holdings in Open Text by 608.1% during the second quarter. Headlands Technologies LLC now owns 20,451 shares of the software maker's stock valued at $597,000 after purchasing an additional 17,563 shares in the last quarter. WealthCollab LLC boosted its holdings in Open Text by 39.5% during the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock valued at $48,000 after purchasing an additional 464 shares in the last quarter. Finally, Vident Advisory LLC boosted its holdings in Open Text by 17.5% during the second quarter. Vident Advisory LLC now owns 13,729 shares of the software maker's stock valued at $400,000 after purchasing an additional 2,048 shares in the last quarter. 70.37% of the stock is owned by institutional investors and hedge funds.

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.