Open Text (NASDAQ:OTEX) Upgraded to Outperform at National Bankshares

Key Points

• Open Text was upgraded to an "outperform" rating from National Bankshares, raising the price target from $34.00 to $45.00, indicating a potential upside of 19.41%.
• The company recently reported earnings of $0.97 per share, beating analyst estimates, although revenue declined 3.8% year-over-year.
• Institutional investors hold 70.37% of Open Text's stock, with significant increases in stake from firms like Vanguard Group and Brandes Investment Partners.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC was upgraded by analysts at National Bankshares from a "sector perform" rating to an "outperform" rating in a research note issued on Monday, MarketBeat Ratings reports. The brokerage presently has a $45.00 price objective on the software maker's stock, up from their previous price objective of $34.00. National Bankshares' target price suggests a potential upside of 21.72% from the company's current price.

A number of other analysts also recently weighed in on OTEX. Jefferies Financial Group downgraded shares of Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price on the stock. in a research report on Tuesday, August 12th. Scotiabank upped their target price on shares of Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a research report on Tuesday, August 12th. CIBC reaffirmed a "neutral" rating on shares of Open Text in a research report on Monday, August 11th. Wall Street Zen raised shares of Open Text from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Finally, Royal Bank Of Canada increased their price objective 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. Four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $35.18.

Open Text Trading Down 1.2%

NASDAQ:OTEX traded down $0.45 during midday trading on Monday, reaching $36.97. 1,620,095 shares of the stock traded hands, compared to its average volume of 1,785,655. The company has a fifty day moving average of $31.73 and a 200 day moving average of $28.71. Open Text has a 12 month low of $22.79 and a 12 month high of $38.08. The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.80 and a current ratio of 0.80. The stock has a market capitalization of $9.35 billion, a P/E ratio of 22.41 and a beta of 1.16.

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 EPS for the quarter, topping the consensus estimate of $0.86 by $0.11. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same period in the prior year, the business earned $0.98 EPS. The company's revenue for the quarter was down 3.8% on a year-over-year basis. On average, research analysts predict that Open Text will post 3.45 EPS for the current year.

Hedge Funds Weigh In On Open Text

A number of hedge funds have recently modified their holdings of the company. Sagard Holdings Management Inc. bought a new stake in shares of Open Text during the second quarter valued at approximately $30,000. Versant Capital Management Inc bought a new stake in shares of Open Text during the first quarter valued at approximately $26,000. MAI Capital Management raised its position in shares of Open Text by 58.7% during the second quarter. MAI Capital Management now owns 1,595 shares of the software maker's stock valued at $47,000 after buying an additional 590 shares during the last quarter. Cromwell Holdings LLC raised its position in shares of Open Text by 27.4% during the second 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 last quarter. Finally, WealthCollab LLC raised its position in shares of Open Text by 39.5% during the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock valued at $48,000 after buying an additional 464 shares during the last quarter. 70.37% of the stock is currently owned by 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.