Open Text (NASDAQ:OTEX) Price Target Raised to $35.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised its price target for Open Text (NASDAQ:OTEX) from $30.00 to $35.00, indicating a potential upside of 5.84% from the last closing price.
• Various analysts have rated Open Text with a mix of recommendations, with the consensus rating at "Hold" and a target price of $33.10.
• Open Text reported earnings of $0.97 per share for the latest quarter, surpassing analysts' expectations of $0.86.

Open Text (NASDAQ:OTEX - Free Report) TSE: OTC had its target price hoisted by Royal Bank Of Canada from $30.00 to $35.00 in a research report sent to investors on Tuesday morning, MarketBeat.com reports. The firm currently has a sector perform rating on the software maker's stock.

Several other equities analysts have also recently weighed in on OTEX. Barclays restated a "positive" rating on shares of Open Text in a report on Friday, August 8th. Scotiabank raised their price objective on Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a report on Tuesday, August 12th. Wall Street Zen upgraded Open Text from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. CIBC restated a "neutral" rating on shares of Open Text in a report on Monday, August 11th. Finally, Jefferies Financial Group cut Open Text from a "buy" rating to a "hold" rating and set a $33.00 price objective for the company. in a report on Tuesday, August 12th. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $33.10.

Open Text Stock Down 0.7%

OTEX stock traded down $0.24 during trading hours on Tuesday, reaching $33.23. 1,839,245 shares of the stock were exchanged, compared to its average volume of 1,785,200. The firm's 50-day moving average is $30.43 and its 200-day moving average is $28.05. The company has a market cap of $8.45 billion, a price-to-earnings ratio of 20.14 and a beta of 1.16. 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 12 month low of $22.79 and a 12 month high of $34.20.

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. The firm had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.30 billion. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The company's revenue was down 3.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.98 EPS. On average, equities research analysts expect that Open Text will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, September 5th will be given a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a yield of 3.3%. This is a boost from Open Text's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. Open Text's dividend payout ratio (DPR) is 63.64%.

Institutional Investors Weigh In On Open Text

Several hedge funds have recently bought and sold shares of OTEX. Norges Bank acquired a new stake in Open Text during the second quarter worth approximately $98,882,000. Brandes Investment Partners LP lifted its position in Open Text by 42.7% during the second quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker's stock worth $244,356,000 after acquiring an additional 2,506,058 shares during the last quarter. Value Partners Investments Inc. lifted its position in Open Text by 1,162.1% during the first quarter. Value Partners Investments Inc. now owns 2,333,539 shares of the software maker's stock worth $58,955,000 after acquiring an additional 2,148,639 shares during the last quarter. JARISLOWSKY FRASER Ltd raised its position in shares of Open Text by 11.8% in the fourth quarter. JARISLOWSKY FRASER Ltd now owns 18,547,256 shares of the software maker's stock valued at $522,879,000 after buying an additional 1,957,695 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Open Text by 11.7% in the second quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker's stock valued at $225,898,000 after buying an additional 810,352 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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.