Scotiabank Issues Positive Forecast for Open Text (NASDAQ:OTEX) Stock Price

Key Points

• Scotiabank has raised its price target for Open Text (NASDAQ:OTEX) from $30.00 to $35.00, implying a potential upside of 19.26% from the current price.
• Other analysts have varied opinions; National Bankshares lowered their price target to $34.00, while Barclays maintains a "positive" rating and UBS Group downgraded its target to $28.00.
• Open Text's recent quarterly earnings report showed an earnings per share of $0.97, exceeding estimates, but revenue decreased by 3.8% year-over-year.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC had its price target increased by equities research analysts at Scotiabank from $30.00 to $35.00 in a report issued on Tuesday, Marketbeat Ratings reports. The firm currently has a "sector perform" rating on the software maker's stock. Scotiabank's target price would indicate a potential upside of 20.52% from the company's previous close.

Other research analysts have also issued research reports about the stock. Royal Bank Of Canada cut their target price on shares of Open Text from $31.00 to $30.00 and set a "sector perform" rating for the company in a research report on Tuesday, April 22nd. Barclays reissued a "positive" rating on shares of Open Text in a research report on Friday. CIBC reissued a "neutral" rating on shares of Open Text in a research report on Monday. UBS Group dropped their price target on shares of Open Text from $32.00 to $28.00 and set a "neutral" rating for the company in a research report on Friday, May 2nd. Finally, National Bankshares dropped their price target on shares of Open Text from $38.00 to $34.00 and set a "sector perform" rating for the company in a research report on Friday, April 25th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and three have assigned a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $32.60.

Open Text Trading Down 3.9%

NASDAQ OTEX traded down $1.18 on Tuesday, hitting $29.04. 1,663,738 shares of the stock were exchanged, compared to its average volume of 1,261,390. Open Text has a 52-week low of $22.79 and a 52-week high of $34.20. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.80 and a quick ratio of 0.80. The company has a market capitalization of $7.39 billion, a price-to-earnings ratio of 17.60 and a beta of 1.12. The company's 50-day moving average price is $28.99 and its two-hundred day moving average price is $27.61.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its quarterly earnings data on Thursday, August 7th. The software maker reported $0.97 earnings per share 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 firm had revenue of $1.32 billion for the quarter, compared to analysts' expectations of $1.30 billion. During the same period in the previous year, the company posted $0.98 EPS. The company's quarterly revenue was down 3.8% compared to the same quarter last year. Research analysts predict that Open Text will post 3.45 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in OTEX. Heron Bay Capital Management boosted its position in shares of Open Text by 5.4% during the 2nd quarter. Heron Bay Capital Management now owns 15,022 shares of the software maker's stock worth $439,000 after acquiring an additional 770 shares in the last quarter. Legal & General Group Plc increased its holdings in Open Text by 6.9% in the second quarter. Legal & General Group Plc now owns 1,689,982 shares of the software maker's stock worth $49,283,000 after purchasing an additional 109,246 shares in the last quarter. MAI Capital Management raised its holdings 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 purchasing an additional 590 shares during the period. Swiss National Bank increased its position in shares of Open Text by 5.1% during the second quarter. Swiss National Bank now owns 789,000 shares of the software maker's stock worth $22,966,000 after acquiring an additional 38,400 shares in the last quarter. Finally, Letko Brosseau & Associates Inc. boosted its position in shares of Open Text by 16.2% during the second quarter. Letko Brosseau & Associates Inc. now owns 5,649,818 shares of the software maker's stock valued at $164,754,000 after buying an additional 789,013 shares during the last quarter. Institutional investors and hedge funds own 70.37% of the company's stock.

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.