Open Text (NASDAQ:OTEX) Upgraded by National Bank Financial to Outperform Rating

Key Points

• Open Text was upgraded by National Bank Financial from a "sector perform" rating to an "outperform" rating, with a target price of $45.00, indicating a potential upside of 26.12%.
• The company reported an earnings per share (EPS) of $0.97 for the last quarter, exceeding expectations of $0.86, despite a 3.8% year-over-year decline in revenue.
• Institutional investors currently hold 70.37% of Open Text's shares, showcasing strong interest from hedge funds and institutional stakeholders.

National Bank Financial upgraded shares of Open Text (NASDAQ:OTEX - Free Report) TSE: OTC from a sector perform rating to an outperform rating in a research report report published on Monday morning, Marketbeat Ratings reports. They currently have $45.00 target price on the software maker's stock. National Bank Financial also issued estimates for Open Text's FY2027 earnings at $4.22 EPS.

Several other brokerages have also recently issued reports on OTEX. CIBC restated a "neutral" rating on shares of Open Text in a report on Monday, August 11th. Jefferies Financial Group lowered Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price on the stock. in a research note on Tuesday, August 12th. Royal Bank Of Canada increased their target price on Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a research note on Tuesday, September 2nd. Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Finally, Scotiabank raised their target price on Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a research report on Tuesday, August 12th. Four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $35.18.

Open Text Stock Performance

Shares of Open Text stock traded down $0.42 on Monday, reaching $37.00. 362,629 shares of the stock were exchanged, compared to its average volume of 1,343,383. 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 business has a 50 day moving average price of $31.55 and a two-hundred day moving average price of $28.63. The firm has a market capitalization of $9.36 billion, a price-to-earnings ratio of 22.40 and a beta of 1.16. Open Text has a twelve month low of $22.79 and a twelve month high of $38.08.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its earnings results 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 company had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.30 billion. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The firm's quarterly revenue was down 3.8% on a year-over-year basis. During the same period in the prior year, the business earned $0.98 EPS. Analysts anticipate that Open Text will post 3.45 earnings per share for the current fiscal year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, September 5th will be paid a dividend of $0.275 per share. The ex-dividend date is Friday, September 5th. This is an increase from Open Text's previous quarterly dividend of $0.26. This represents a $1.10 annualized dividend and a yield of 3.0%. Open Text's payout ratio is currently 66.67%.

Institutional Trading of Open Text

Several large investors have recently added to or reduced their stakes in the business. Plato Investment Management Ltd boosted its stake in shares of Open Text by 926.0% during the 1st quarter. Plato Investment Management Ltd now owns 49,999 shares of the software maker's stock worth $1,276,000 after acquiring an additional 45,126 shares in the last quarter. Parallel Advisors LLC grew its position in shares of Open Text by 219.3% in the first quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock valued at $49,000 after purchasing an additional 1,331 shares during the last quarter. Allspring Global Investments Holdings LLC grew its position in shares of Open Text by 12.7% in the first quarter. Allspring Global Investments Holdings LLC now owns 187,565 shares of the software maker's stock valued at $4,735,000 after purchasing an additional 21,089 shares during the last quarter. Korea Investment CORP grew its position in Open Text by 107.7% during the first quarter. Korea Investment CORP now owns 188,444 shares of the software maker's stock worth $4,755,000 after buying an additional 97,700 shares in the last quarter. Finally, Value Partners Investments Inc. grew its position in Open Text by 9.8% during the second quarter. Value Partners Investments Inc. now owns 2,561,601 shares of the software maker's stock worth $74,709,000 after buying an additional 228,062 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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.