Scotiabank Upgrades Open Text (NASDAQ:OTEX) to "Outperform"

Key Points

• Open Text received an upgrade from Scotiabank, changing its rating from "sector perform" to "sector outperform," with a new price target of $50.00, indicating a potential upside of 34.73% from its current price.
• Other analysts have mixed opinions on Open Text, with five giving a Buy rating while others have issued Hold and Sell ratings, reflecting divided sentiment regarding the stock's performance.
• In its most recent earnings report, Open Text exceeded analysts' expectations with earnings per share of $0.97 and revenue of $1.32 billion, although revenue showed a year-over-year decline of 3.8%.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC was upgraded by investment analysts at Scotiabank from a "sector perform" rating to an "outperform" rating in a note issued to investors on Wednesday, MarketBeat.com reports. The brokerage currently has a $50.00 price target on the software maker's stock, up from their previous price target of $35.00. Scotiabank's price target would suggest a potential upside of 28.82% from the stock's current price.

OTEX has been the subject of several other research reports. Royal Bank Of Canada upped their price target on shares of Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a research report on Tuesday, September 2nd. Jefferies Financial Group cut shares of Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price for the company. in a report on Tuesday, August 12th. Barclays reaffirmed 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 price objective for the company in a research note on Monday, September 15th. Finally, Wall Street Zen upgraded Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $36.55.

Open Text Stock Performance

OTEX traded up $1.71 on Wednesday, reaching $38.82. The company had a trading volume of 172,545 shares, compared to its average volume of 1,342,051. Open Text has a 1 year low of $22.79 and a 1 year high of $38.78. The stock has a market capitalization of $9.82 billion, a PE ratio of 23.53 and a beta of 1.15. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.61. The stock has a 50-day moving average price of $32.11 and a 200-day moving average price of $28.88.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings data on Thursday, August 7th. The software maker reported $0.97 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.11. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The company had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.30 billion. During the same quarter in the previous year, the business earned $0.98 earnings per share. The firm's revenue for the quarter was down 3.8% on a year-over-year basis. As a group, research analysts forecast that Open Text will post 3.45 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in Open Text by 6.1% in the first quarter. Vanguard Group Inc. now owns 11,151,279 shares of the software maker's stock valued at $281,447,000 after buying an additional 639,514 shares in the last quarter. Brandes Investment Partners LP increased its position in Open Text by 42.7% during the second quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker's stock worth $244,356,000 after buying an additional 2,506,058 shares in the last quarter. First Trust Advisors LP increased its position in Open Text by 1.5% during the second quarter. First Trust Advisors LP now owns 8,262,084 shares of the software maker's stock worth $241,328,000 after buying an additional 119,163 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its position in Open Text by 11.7% during the second quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker's stock worth $225,898,000 after buying an additional 810,352 shares in the last quarter. Finally, Mackenzie Financial Corp increased its position in Open Text by 9.2% during the 1st quarter. Mackenzie Financial Corp now owns 5,876,003 shares of the software maker's stock worth $148,299,000 after purchasing an additional 492,897 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 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.