Weiss Ratings Reaffirms Hold (C) Rating for Open Text (NASDAQ:OTEX)

Key Points

• Weiss Ratings has reaffirmed a "hold (C)" rating for Open Text (NASDAQ: OTEX), indicating a cautious stance on the stock.
• National Bank Financial upgraded Open Text to an "outperform" rating and set a target price of $45.00, while Wall Street Zen raised its rating from "hold" to "buy."
• Open Text reported earnings of $0.97 per share for the last quarter, beating expectations, but its quarterly revenue decreased 3.8% compared to the previous year.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC's stock had its "hold (c)" rating reiterated by equities researchers at Weiss Ratings in a report released on Wednesday,Weiss Ratings reports.

Several other brokerages also recently commented on OTEX. National Bankshares raised Open Text from a "sector perform" rating to an "outperform" rating and boosted their target price for the stock from $34.00 to $45.00 in a report on Monday, September 15th. Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. National Bank Financial raised Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 price objective on the stock in a report on Monday, September 15th. Barclays reissued a "positive" rating on shares of Open Text in a research note on Friday, August 8th. Finally, CIBC reissued a "neutral" rating on shares of Open Text in a research note on Monday, August 11th. Four analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $37.25.

Open Text Trading Up 1.4%

Open Text stock opened at $38.64 on Wednesday. The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.80 and a current ratio of 0.80. The business's 50-day simple moving average is $33.91 and its 200-day simple moving average is $29.76. The firm has a market capitalization of $9.77 billion, a PE ratio of 23.42 and a beta of 1.17. Open Text has a 52 week low of $22.79 and a 52 week high of $39.04.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.11. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.30 billion. During the same period in the previous year, the company posted $0.98 earnings per share. The company's quarterly revenue was down 3.8% compared to the same quarter last year. Equities research analysts forecast that Open Text will post 3.45 earnings per share for the current year.

Institutional Trading of Open Text

A number of hedge funds have recently added to or reduced their stakes in OTEX. Assenagon Asset Management S.A. lifted its holdings in Open Text by 62.5% in the third quarter. Assenagon Asset Management S.A. now owns 19,289 shares of the software maker's stock valued at $721,000 after buying an additional 7,419 shares during the period. Osaic Holdings Inc. increased its position in shares of Open Text by 108.8% during the second quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker's stock worth $52,000 after acquiring an additional 937 shares in the last quarter. Centaurus Financial Inc. bought a new stake in shares of Open Text during the second quarter worth about $114,000. Headlands Technologies LLC grew its position in Open Text by 608.1% in the 2nd quarter. Headlands Technologies LLC now owns 20,451 shares of the software maker's stock worth $597,000 after purchasing an additional 17,563 shares in the last quarter. Finally, WealthCollab LLC grew its position in Open Text by 39.5% in the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock worth $48,000 after purchasing an additional 464 shares in the last quarter. 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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