Open Text (NASDAQ:OTEX) Rating Lowered to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded Open Text from “strong buy” to “buy,” while the broader analyst consensus remains “hold,” with an average price target of $33.67.
• Open Text shares were trading at $23.62, up 5.6%, but remained well below their 52-week high of $39.90. Recent analyst price targets have generally been reduced.
• The company exceeded quarterly expectations, reporting $1.01 in earnings per share versus the $0.94 consensus estimate and $1.28 billion in revenue, up 2.2% year over year; institutional investors own 70.37% of its stock.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Tuesday.

OTEX has been the topic of a number of other reports. Raymond James Financial dropped their target price on shares of Open Text from $42.00 to $35.00 and set an "outperform" rating on the stock in a report on Friday, May 8th. Barclays lifted their price target on shares of Open Text from $25.00 to $27.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. National Bank Financial dropped their price objective on shares of Open Text from $45.00 to $33.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 27th. Scotiabank dropped their price objective on shares of Open Text from $50.00 to $40.00 and set a "sector outperform" rating on the stock in a research note on Friday, May 8th. Finally, Citigroup cut their target price on shares of Open Text from $26.00 to $25.00 and set a "neutral" rating on the stock in a report on Friday, May 8th. Four research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $33.67.

Open Text Trading Up 5.6%

Shares of NASDAQ OTEX opened at $23.62 on Tuesday. The stock's 50 day moving average price is $22.64 and its two-hundred day moving average price is $23.97. Open Text has a 52-week low of $19.77 and a 52-week high of $39.90. The stock has a market capitalization of $5.72 billion, a P/E ratio of 11.52 and a beta of 1.04. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.56.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its earnings results on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, topping analysts' consensus estimates of $0.94 by $0.07. Open Text had a return on equity of 24.77% and a net margin of 9.91%.The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter last year, the business posted $0.82 EPS. Open Text's quarterly revenue was up 2.2% compared to the same quarter last year. On average, analysts anticipate that Open Text will post 4.05 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. CIBC Private Wealth Group LLC acquired a new position in shares of Open Text during the third quarter worth approximately $33,000. Caitong International Asset Management Co. Ltd increased its position in Open Text by 5,096.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker's stock valued at $52,000 after acquiring an additional 1,580 shares during the period. WealthCollab LLC raised its stake in Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock valued at $48,000 after acquiring an additional 464 shares in the last quarter. Osaic Holdings Inc. raised its stake in Open Text by 108.8% during the 2nd quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker's stock valued at $52,000 after acquiring an additional 937 shares in the last quarter. Finally, Barclays PLC boosted its position in Open Text by 55.5% during the 4th quarter. Barclays PLC now owns 1,854 shares of the software maker's stock worth $60,000 after acquiring an additional 662 shares during the period. Institutional investors own 70.37% of the company's stock.

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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