National Bankshares Downgrades Open Text (NASDAQ:OTEX) to Sector Perform

National Bankshares lowered shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from an outperform rating to a sector perform rating in a report issued on Friday morning, BayStreet.CA reports. The brokerage currently has $38.00 price target on the software maker’s stock.

Several other equities analysts also recently issued reports on OTEX. Citigroup reduced their price objective on shares of Open Text from $37.00 to $32.00 and set a neutral rating on the stock in a research note on Wednesday, June 26th. National Bank Financial lowered shares of Open Text from an outperform rating to a sector perform rating in a research report on Friday. CIBC dropped their price target on shares of Open Text from $36.00 to $33.00 and set a neutral rating for the company in a research report on Friday, July 19th. Barclays dropped their price target on shares of Open Text from $44.00 to $38.00 and set an equal weight rating for the company in a research report on Friday, May 3rd. Finally, Scotiabank reaffirmed a sector perform rating on shares of Open Text in a research report on Friday, May 3rd. Eight equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat, Open Text currently has an average rating of Hold and an average target price of $38.80.

Open Text Price Performance

Shares of NASDAQ OTEX traded down $2.00 on Friday, hitting $28.49. The company’s stock had a trading volume of 1,139,908 shares, compared to its average volume of 580,666. Open Text has a 12-month low of $27.54 and a 12-month high of $45.47. The company has a market capitalization of $7.63 billion, a price-to-earnings ratio of 45.95 and a beta of 1.12. The company has a debt-to-equity ratio of 2.01, a current ratio of 1.40 and a quick ratio of 1.40. The stock has a 50 day moving average of $30.01 and a 200-day moving average of $34.86.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, May 2nd. The software maker reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.81 by $0.03. The business had revenue of $1.45 billion for the quarter, compared to the consensus estimate of $1.43 billion. Open Text had a net margin of 8.06% and a return on equity of 25.22%. As a group, research analysts predict that Open Text will post 3.18 EPS for the current year.

Open Text Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 20th. Investors of record on Friday, August 30th will be issued a dividend of $0.192 per share. This represents a $0.77 dividend on an annualized basis and a yield of 2.70%. The ex-dividend date of this dividend is Friday, August 30th. Open Text’s payout ratio is 161.29%.

Institutional Investors Weigh In On Open Text

Large investors have recently added to or reduced their stakes in the company. National Bank of Canada FI boosted its stake in Open Text by 17.5% during the 2nd quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock valued at $120,390,000 after acquiring an additional 599,790 shares during the last quarter. Cooke & Bieler LP boosted its stake in Open Text by 18.6% during the 2nd quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock valued at $166,325,000 after acquiring an additional 867,978 shares during the last quarter. CIBC Asset Management Inc boosted its stake in Open Text by 2.6% during the 2nd quarter. CIBC Asset Management Inc now owns 1,022,387 shares of the software maker’s stock valued at $30,681,000 after acquiring an additional 25,665 shares during the last quarter. Van ECK Associates Corp boosted its stake in Open Text by 15.9% during the 2nd quarter. Van ECK Associates Corp now owns 20,298 shares of the software maker’s stock valued at $610,000 after acquiring an additional 2,791 shares during the last quarter. Finally, Tobam lifted its position in shares of Open Text by 519.6% in the 2nd quarter. Tobam now owns 40,112 shares of the software maker’s stock worth $1,205,000 after buying an additional 33,638 shares during the last quarter. 70.37% of the stock is 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.