CIBC Trims Open Text (NASDAQ:OTEX) Target Price to $38.50

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target decreased by CIBC from $44.00 to $38.50 in a research report report published on Friday morning, BayStreet.CA reports. CIBC currently has a neutral rating on the software maker’s stock.

Several other analysts have also recently issued reports on OTEX. StockNews.com raised shares of Open Text from a hold rating to a buy rating in a report on Tuesday, February 6th. Royal Bank of Canada reaffirmed an outperform rating and set a $53.00 price target on shares of Open Text in a research report on Friday, February 2nd. Jefferies Financial Group assumed coverage on Open Text in a research note on Tuesday, February 27th. They issued a buy rating and a $45.00 price target for the company. BMO Capital Markets cut Open Text from an outperform rating to a market perform rating and cut their price objective for the company from $50.00 to $38.00 in a research note on Friday. Finally, National Bankshares decreased their target price on Open Text from $60.00 to $50.00 and set an outperform rating for the company in a research report on Friday. Six analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, Open Text has an average rating of Hold and a consensus target price of $42.25.

Open Text Stock Down 14.7 %

OTEX traded down $5.22 on Friday, reaching $30.25. The company’s stock had a trading volume of 3,706,318 shares, compared to its average volume of 728,893. Open Text has a 1 year low of $28.19 and a 1 year high of $45.47. The business’s 50 day moving average is $37.32 and its 200 day moving average is $38.70. The company has a debt-to-equity ratio of 2.10, a current ratio of 1.38 and a quick ratio of 1.38. The stock has a market cap of $8.25 billion, a price-to-earnings ratio of 48.79 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.10 by $0.01. Open Text had a return on equity of 24.61% and a net margin of 2.85%. The company had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.48 billion. As a group, research analysts forecast that Open Text will post 4.14 EPS for the current fiscal year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 18th. Investors of record on Friday, May 31st will be paid a dividend of $0.435 per share. This is an increase from Open Text’s previous quarterly dividend of $0.25. This represents a $1.74 dividend on an annualized basis and a yield of 5.75%. The ex-dividend date is Friday, May 31st. Open Text’s dividend payout ratio is presently 161.29%.

Institutional Investors Weigh In On Open Text

A number of hedge funds have recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in shares of Open Text in the 4th quarter worth about $139,600,000. Clearbridge Investments LLC acquired a new stake in shares of Open Text in the fourth quarter valued at approximately $117,627,000. FIL Ltd raised its holdings in shares of Open Text by 25.7% during the fourth quarter. FIL Ltd now owns 9,058,024 shares of the software maker’s stock valued at $380,696,000 after buying an additional 1,853,891 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec acquired a new position in shares of Open Text during the third quarter worth approximately $49,856,000. Finally, The Manufacturers Life Insurance Company grew its holdings in Open Text by 73.6% in the 4th quarter. The Manufacturers Life Insurance Company now owns 1,852,184 shares of the software maker’s stock worth $77,970,000 after buying an additional 785,157 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors.

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.