Open Text (NASDAQ:OTEX) Raised to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a hold rating to a buy rating in a research note released on Thursday morning, reports. They currently have $48.00 target price on the software maker’s stock.

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. “

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

Shares of OTEX opened at $42.50 on Thursday. Open Text has a 12-month low of $30.99 and a 12-month high of $43.14. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 0.68. The company has a market capitalization of $11.46 billion, a price-to-earnings ratio of 41.67 and a beta of 0.48. The firm’s 50-day moving average price is $41.13.

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

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 21st. Stockholders of record on Friday, May 31st were paid a $0.1746 dividend. This is a positive change from Open Text’s previous quarterly dividend of $0.12. This represents a $0.70 annualized dividend and a dividend yield of 1.64%. The ex-dividend date was Thursday, May 30th. Open Text’s dividend payout ratio is currently 76.92%.

Several hedge funds have recently added to or reduced their stakes in OTEX. Norges Bank bought a new stake in shares of Open Text in the 4th quarter valued at approximately $66,347,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp acquired a new position in shares of Open Text in the 1st quarter worth approximately $51,897,000. Clark Capital Management Group Inc. acquired a new position in shares of Open Text in the 1st quarter worth approximately $21,292,000. Toronto Dominion Bank boosted its holdings in shares of Open Text by 28.0% in the 1st quarter. Toronto Dominion Bank now owns 1,422,968 shares of the software maker’s stock worth $54,880,000 after acquiring an additional 311,177 shares in the last quarter. Finally, Bank of Montreal Can boosted its holdings in shares of Open Text by 11.1% in the 1st quarter. Bank of Montreal Can now owns 3,011,673 shares of the software maker’s stock worth $115,740,000 after acquiring an additional 301,360 shares in the last quarter. Institutional investors own 67.41% of the company’s stock.

Open Text Company Profile

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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