Raymond James Financial Downgrades Open Text (NASDAQ:OTEX) to Market Perform

Key Points

• Raymond James downgraded Open Text from “outperform” to “market perform,” while the broader analyst consensus remains “Hold” with an average target price of $33.67.
• Open Text shares traded at $25.79, well below their one-year high of $39.90, despite reporting quarterly EPS of $1.01 and revenue of $1.28 billion, both ahead of analyst expectations.
• Institutional investors hold 70.37% of the company, with Goldman Sachs increasing its stake by 75.8% during the first quarter.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC was downgraded by equities researchers at Raymond James Financial from an "outperform" rating to a "market perform" rating in a research report issued on Thursday, Marketbeat.com reports.

A number of other equities analysts have also issued reports on the stock. UBS Group set a $25.00 target price on shares of Open Text in a research report on Friday, May 8th. National Bank Financial lowered their price target on shares of Open Text from $45.00 to $33.00 and set an "outperform" rating for the company in a report on Wednesday, May 27th. Scotia dropped their price objective on shares of Open Text from $50.00 to $40.00 and set a "sector outperform" rating for the company in a research report on Friday, May 8th. Wall Street Zen downgraded Open Text from a "strong-buy" rating to a "buy" rating in a report on Tuesday, July 28th. Finally, Citigroup decreased their price objective on Open Text from $26.00 to $25.00 and set a "neutral" rating on the stock in a research report on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $33.67.

Open Text Price Performance

Shares of Open Text stock traded up $0.14 during trading on Thursday, reaching $25.79. The company's stock had a trading volume of 3,393,083 shares, compared to its average volume of 2,155,314. The stock has a 50-day moving average price of $22.98 and a two-hundred day moving average price of $23.64. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.56. Open Text has a one year low of $19.77 and a one year high of $39.90. The stock has a market capitalization of $6.24 billion, a P/E ratio of 12.58 and a beta of 1.03.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings data on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, topping analysts' consensus estimates of $0.94 by $0.07. The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.26 billion. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The company's revenue was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.82 EPS. As a group, sell-side analysts anticipate that Open Text will post 4.05 EPS for the current fiscal year.

Institutional Investors Weigh In On Open Text

A number of institutional investors and hedge funds have recently modified their holdings of the business. Goldman Sachs Group Inc. boosted its stake in Open Text by 75.8% in the first quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker's stock valued at $36,307,000 after acquiring an additional 619,527 shares during the last quarter. United Services Automobile Association bought a new stake in shares of Open Text during the 1st quarter valued at $213,000. EverSource Wealth Advisors LLC lifted its stake in shares of Open Text by 39.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker's stock valued at $59,000 after purchasing an additional 570 shares during the period. Cerity Partners LLC boosted its position in shares of Open Text by 3.4% in the 2nd quarter. Cerity Partners LLC now owns 49,003 shares of the software maker's stock worth $1,431,000 after purchasing an additional 1,612 shares during the last quarter. Finally, Qube Research & Technologies Ltd grew its stake in shares of Open Text by 16.8% during the second quarter. Qube Research & Technologies Ltd now owns 46,500 shares of the software maker's stock worth $1,360,000 after purchasing an additional 6,700 shares during the period. 70.37% of the stock is owned by institutional investors.

Open Text Company Profile

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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