Open Text (NASDAQ:OTEX) Rating Lowered to "Hold" at Jefferies Financial Group

Key Points

• Open Text has been downgraded from a "buy" rating to a "hold" rating by Jefferies Financial Group, with a target price set at $33.00, indicating a potential upside of 9.20% from its current price.
• Analysts' ratings for Open Text vary, with one sell rating, seven hold ratings, and three buy ratings, leading to an average rating of "Hold" and an average target price of $32.10.
• Open Text's latest quarterly earnings showed an EPS of $0.97, exceeding expectations, though its revenue declined 3.8% year-over-year.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC was downgraded by analysts at Jefferies Financial Group from a "buy" rating to a "hold" rating in a report released on Tuesday,Finviz reports. They currently have a $33.00 target price on the software maker's stock. Jefferies Financial Group's price objective points to a potential upside of 9.20% from the company's current price.

OTEX has been the subject of several other reports. UBS Group cut their target price on shares of Open Text from $32.00 to $28.00 and set a "neutral" rating for the company in a research note on Friday, May 2nd. Royal Bank Of Canada cut their target price on shares of Open Text from $31.00 to $30.00 and set a "sector perform" rating for the company in a research note on Tuesday, April 22nd. CIBC reissued a "neutral" rating on shares of Open Text in a research note on Monday. Citigroup increased their target price on shares of Open Text from $29.00 to $43.00 and gave the company a "negative" rating in a research note on Friday, May 2nd. Finally, Scotiabank cut their target price on shares of Open Text from $35.00 to $30.00 and set a "sector perform" rating for the company in a research note on Monday, April 28th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the stock. According to MarketBeat.com, Open Text currently has an average rating of "Hold" and an average target price of $32.10.

Open Text Trading Down 2.2%

Open Text stock opened at $30.22 on Tuesday. The firm has a 50 day simple moving average of $28.99 and a 200-day simple moving average of $27.61. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.80 and a quick ratio of 0.80. The stock has a market capitalization of $7.69 billion, a PE ratio of 18.32 and a beta of 1.12. Open Text has a 12-month low of $22.79 and a 12-month high of $34.20.

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

Institutional Investors Weigh In On Open Text

Hedge funds have recently made changes to their positions in the company. Versant Capital Management Inc acquired a new position in Open Text in the 1st quarter valued at approximately $26,000. Cromwell Holdings LLC increased its stake in Open Text by 27.4% in the 2nd quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker's stock valued at $48,000 after buying an additional 352 shares during the period. Parallel Advisors LLC increased its stake in Open Text by 219.3% in the 1st quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock valued at $49,000 after buying an additional 1,331 shares during the period. Aquatic Capital Management LLC acquired a new position in Open Text in the 4th quarter valued at approximately $60,000. Finally, Headlands Technologies LLC increased its stake in Open Text by 360.6% in the 1st quarter. Headlands Technologies LLC now owns 2,888 shares of the software maker's stock valued at $73,000 after buying an additional 2,261 shares during the period. Hedge funds and other institutional investors own 70.37% of the company's stock.

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.

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