Open Text (NASDAQ:OTEX) Upgraded by Wall Street Zen to "Strong-Buy" Rating

Key Points

• Wall Street Zen upgraded Open Text from “buy” to “strong-buy,” adding a more bullish vote to the stock’s analyst coverage.
• Despite the upgrade, the broader analyst picture remains cautious: Open Text currently holds an average rating of “Hold” with a consensus target price of $33.67.
• The company recently beat quarterly expectations, posting EPS of $1.01 versus $0.94 expected and revenue of $1.28 billion, while shares were trading at $23.27 on Monday.

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

OTEX has been the topic of several other reports. Citigroup decreased 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. Barclays raised their price target on shares of Open Text from $25.00 to $27.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. Scotiabank reduced their price target on shares of Open Text from $50.00 to $40.00 and set a "sector outperform" rating on the stock in a research report on Friday, May 8th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Open Text in a report on Wednesday, June 24th. Finally, Royal Bank Of Canada lowered their price objective on Open Text from $30.00 to $27.00 and set a "sector perform" rating for the company in a research report on Friday, May 8th. Four investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $33.67.

Open Text Price Performance

Shares of OTEX opened at $23.27 on Monday. Open Text has a 52-week low of $19.77 and a 52-week high of $39.90. The company has a market capitalization of $5.63 billion, a PE ratio of 11.35 and a beta of 1.04. The stock has a fifty day simple moving average of $22.72 and a two-hundred day simple moving average of $24.38. 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 announced its quarterly earnings results on Thursday, May 7th. The software maker reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.07. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The firm had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter in the previous year, the company posted $0.82 EPS. The company's revenue was up 2.2% compared to the same quarter last year. As a group, equities analysts forecast that Open Text will post 4.05 EPS for the current year.

Institutional Investors Weigh In On Open Text

Institutional investors and hedge funds have recently made changes to their positions in the stock. Wedge Capital Management L L P NC lifted its holdings in shares of Open Text by 44.0% in the 2nd quarter. Wedge Capital Management L L P NC now owns 196,153 shares of the software maker's stock worth $4,345,000 after acquiring an additional 59,922 shares during the last quarter. Legacy Wealth Asset Management LLC increased its holdings in Open Text by 2.9% in the 2nd quarter. Legacy Wealth Asset Management LLC now owns 21,435 shares of the software maker's stock valued at $475,000 after purchasing an additional 595 shares during the last quarter. Byrne Asset Management LLC raised its position in Open Text by 11.5% in the second quarter. Byrne Asset Management LLC now owns 4,837 shares of the software maker's stock valued at $107,000 after purchasing an additional 500 shares during the period. Access Investment Management LLC raised its position in Open Text by 60.2% in the first quarter. Access Investment Management LLC now owns 320,215 shares of the software maker's stock valued at $7,122,000 after purchasing an additional 120,380 shares during the period. Finally, Bank of America Corp DE lifted its stake in Open Text by 99.1% during the first quarter. Bank of America Corp DE now owns 1,349,545 shares of the software maker's stock worth $30,014,000 after purchasing an additional 671,572 shares in the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

About Open Text

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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