Open Text (NASDAQ:OTEX) Lowered to “Hold” at Zacks Investment Research

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Zacks Investment Research lowered shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a strong-buy rating to a hold rating in a research note published on Tuesday morning, reports.

According to Zacks, “Open Text Corporation is engaged in development of innovative intranet, extranet and e-Business applications. Since creating one of the first search engines to index the World Wide Web, the company has remained at the forefront of Internet-based technologies. Open Text solutions allow individuals, teams, organizations, and global trading communities to collaborate on projects, share ideas and accelerate innovation to the fastest possible speed. Open Text Corporation is headquartered in Waterloo, Canada. “

A number of other analysts have also weighed in on the stock. Raymond James reiterated a buy rating and set a $21.00 target price on shares of Colfax in a report on Thursday, May 2nd. BidaskClub upgraded shares of ZIX from a buy rating to a strong-buy rating in a report on Friday, May 3rd. Two investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. The company has a consensus rating of Buy and an average target price of $46.09.

Shares of NASDAQ:OTEX opened at $42.95 on Tuesday. The company’s 50-day moving average is $41.09. Open Text has a 12-month low of $30.99 and a 12-month high of $43.14. The company has a market capitalization of $11.48 billion, a PE ratio of 47.20 and a beta of 0.48. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 0.68.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its earnings results on Wednesday, May 1st. The software maker reported $0.27 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.08 by $0.19. The company had revenue of $719.10 million during the quarter, compared to analyst estimates of $710.47 million. Open Text had a net margin of 9.57% and a return on equity of 7.31%. Open Text’s revenue for the quarter was up 4.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.54 earnings per share. As a group, research analysts expect that Open Text will post 1.16 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Friday, June 21st. Stockholders of record on Friday, May 31st were issued a dividend of $0.1746 per share. This is a positive change from Open Text’s previous quarterly dividend of $0.12. This represents a $0.70 dividend on an annualized basis and a dividend yield of 1.63%. The ex-dividend date of this dividend was Thursday, May 30th. Open Text’s dividend payout ratio is currently 76.92%.

Institutional investors have recently bought and sold shares of the company. Hsbc Holdings PLC lifted its holdings in Open Text by 4.3% in the fourth quarter. Hsbc Holdings PLC now owns 114,222 shares of the software maker’s stock worth $3,723,000 after buying an additional 4,660 shares during the period. Henry James International Management Inc. lifted its holdings in Open Text by 44.8% in the first quarter. Henry James International Management Inc. now owns 135,282 shares of the software maker’s stock worth $5,199,000 after buying an additional 41,885 shares during the period. Praesidium Investment Management Company LLC lifted its holdings in Open Text by 0.9% in the fourth quarter. Praesidium Investment Management Company LLC now owns 4,175,626 shares of the software maker’s stock worth $136,125,000 after buying an additional 37,599 shares during the period. Northern Trust Corp lifted its holdings in Open Text by 2.9% in the fourth quarter. Northern Trust Corp now owns 199,724 shares of the software maker’s stock worth $6,511,000 after buying an additional 5,634 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in Open Text by 34.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 189,821 shares of the software maker’s stock worth $6,188,000 after buying an additional 49,149 shares during the period. Institutional investors own 67.41% of the company’s stock.

About Open Text

Open Text Corporation provides a suite of software products and services. The company offers content services; digital process automation, which enables organizations to transform into digital and data-driven businesses through automation; and discovery suite that provides forensics and unstructured data analytics for searching, collecting, and investigating enterprise data to manage legal obligations and risk.

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