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 National Bankshares from a "sector perform" rating to an "outperform" rating in a report issued on Monday,BayStreet.CA reports. The brokerage currently has a $45.00 price target on the software maker's stock, up from their prior price target of $34.00. National Bankshares' price objective points to a potential upside of 19.41% from the stock's previous close.

OTEX has been the topic of a number of other reports. Wall Street Zen raised shares of Open Text from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. National Bank Financial raised shares of Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 target price on the stock in a research report on Monday. Barclays reaffirmed a "positive" rating on shares of Open Text in a research report on Friday, August 8th. 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. Finally, Royal Bank Of Canada raised their price objective 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, September 2nd. Four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Open Text currently has a consensus rating of "Hold" and a consensus price target of $35.18.

Open Text Trading Up 5.6%

Shares of OTEX stock traded up $2.01 during trading hours on Monday, hitting $37.69. The company had a trading volume of 1,212,908 shares, compared to its average volume of 1,333,059. The company's fifty day moving average is $30.95 and its 200 day moving average is $28.35. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.80 and a quick ratio of 0.80. Open Text has a fifty-two week low of $22.79 and a fifty-two week high of $38.08. The stock has a market capitalization of $9.58 billion, a PE ratio of 22.82 and a beta of 1.16.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.86 by $0.11. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The company had revenue of $1.32 billion for 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 firm's quarterly revenue was down 3.8% on a year-over-year basis. Research analysts expect that Open Text will post 3.45 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. boosted its stake in shares of Open Text by 6.1% in the first quarter. Vanguard Group Inc. now owns 11,151,279 shares of the software maker's stock valued at $281,447,000 after purchasing an additional 639,514 shares during the period. Brandes Investment Partners LP boosted its stake in Open Text by 42.7% during the 2nd quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker's stock valued at $244,356,000 after acquiring an additional 2,506,058 shares during the last quarter. First Trust Advisors LP boosted its stake in Open Text by 1.5% during the 2nd quarter. First Trust Advisors LP now owns 8,262,084 shares of the software maker's stock valued at $241,328,000 after acquiring an additional 119,163 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in shares of Open Text by 11.7% during the second quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker's stock worth $225,898,000 after purchasing an additional 810,352 shares during the period. Finally, Mackenzie Financial Corp raised its holdings in shares of Open Text by 9.2% during the first quarter. Mackenzie Financial Corp now owns 5,876,003 shares of the software maker's stock worth $148,299,000 after purchasing an additional 492,897 shares during the period. 70.37% of the stock is currently owned by hedge funds and other 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.

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