Open Text's (OTEX) "Hold" Rating Reaffirmed at TD Cowen

Key Points

• TD Cowen reaffirmed a "Hold" rating for Open Text (OTEX) with a target price of $40.00, suggesting a potential upside of 5.29% from its current pricing.
• The company's latest earnings report showed earnings per share of $0.97, exceeding estimates, but revenue fell by 3.8% compared to the previous year.
• Institutional investors currently hold 70.37% of Open Text's stock, with significant increases in holdings by firms like Plato Investment Management and Korea Investment CORP.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC's stock had its "hold" rating restated by investment analysts at TD Cowen in a research note issued on Friday,Benzinga reports. They presently have a $40.00 target price on the software maker's stock. TD Cowen's price objective indicates a potential upside of 5.29% from the company's current price.

A number of other equities analysts have also commented on OTEX. CIBC reaffirmed a "neutral" rating on shares of Open Text in a research note on Monday, August 11th. 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 note on Tuesday, September 2nd. National Bankshares raised shares of Open Text from a "sector perform" rating to an "outperform" rating and raised their price objective for the stock from $34.00 to $45.00 in a research note on Monday, September 15th. Scotiabank raised shares of Open Text from a "sector perform" rating to an "outperform" rating and raised their price objective for the stock from $35.00 to $50.00 in a research note on Wednesday, September 24th. Finally, National Bank Financial raised shares of Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 price objective for the company in a research note on Monday, September 15th. Four investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $37.25.

Open Text Price Performance

NASDAQ:OTEX traded up $0.33 during trading hours on Friday, reaching $37.99. 261,235 shares of the company's stock were exchanged, compared to its average volume of 1,327,856. The company has a market capitalization of $9.61 billion, a P/E ratio of 23.00 and a beta of 1.17. Open Text has a 12 month low of $22.79 and a 12 month high of $39.04. 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's 50-day simple moving average is $33.27 and its two-hundred day simple moving average is $29.43.

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 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 firm had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.30 billion. During the same period last year, the firm posted $0.98 earnings per share. The firm's revenue for the quarter was down 3.8% compared to the same quarter last year. Sell-side analysts expect that Open Text will post 3.45 EPS for the current fiscal year.

Institutional Investors Weigh In On Open Text

Institutional investors and hedge funds have recently modified their holdings of the business. Plato Investment Management Ltd lifted its stake in shares of Open Text by 926.0% in the 1st quarter. Plato Investment Management Ltd now owns 49,999 shares of the software maker's stock valued at $1,276,000 after purchasing an additional 45,126 shares during the last quarter. Korea Investment CORP raised its holdings in Open Text by 107.7% in the 1st quarter. Korea Investment CORP now owns 188,444 shares of the software maker's stock worth $4,755,000 after acquiring an additional 97,700 shares during the period. Parallel Advisors LLC raised its holdings in Open Text by 219.3% in the 1st quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock worth $49,000 after acquiring an additional 1,331 shares during the period. Allspring Global Investments Holdings LLC raised its holdings in Open Text by 12.7% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 187,565 shares of the software maker's stock worth $4,735,000 after acquiring an additional 21,089 shares during the period. Finally, Value Partners Investments Inc. raised its holdings in Open Text by 9.8% in the 2nd quarter. Value Partners Investments Inc. now owns 2,561,601 shares of the software maker's stock worth $74,709,000 after acquiring an additional 228,062 shares during the period. Institutional investors and hedge funds 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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