Open Text (NASDAQ:OTEX) Lowered to "Sector Perform" Rating by Royal Bank of Canada

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC was downgraded by investment analysts at Royal Bank of Canada from an "outperform" rating to a "sector perform" rating in a research note issued on Friday, Marketbeat.com reports. They currently have a $33.00 price target on the software maker's stock, down from their previous price target of $45.00. Royal Bank of Canada's target price would indicate a potential upside of 13.87% from the stock's current price.

A number of other equities research analysts also recently weighed in on the company. CIBC cut their price target on Open Text from $36.00 to $33.00 and set a "neutral" rating for the company in a research note on Friday, July 19th. Barclays reduced their target price on shares of Open Text from $38.00 to $36.00 and set an "equal weight" rating for the company in a research note on Monday, August 5th. Jefferies Financial Group dropped their price target on shares of Open Text from $42.00 to $35.00 and set a "buy" rating on the stock in a research note on Friday, August 2nd. National Bankshares lowered shares of Open Text from an "outperform" rating to a "sector perform" rating and set a $38.00 price objective for the company. in a research note on Friday, August 2nd. Finally, BMO Capital Markets lowered their target price on shares of Open Text from $38.00 to $33.00 and set a "market perform" rating on the stock in a research report on Friday, August 2nd. Eight investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $35.90.

Open Text Stock Down 3.4 %

Shares of OTEX stock traded down $1.02 during trading on Friday, hitting $28.98. 1,397,507 shares of the company were exchanged, compared to its average volume of 635,531. The firm has a market capitalization of $7.70 billion, a price-to-earnings ratio of 16.94 and a beta of 1.12. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.81 and a current ratio of 0.81. The business's 50-day simple moving average is $32.80 and its 200 day simple moving average is $31.62. Open Text has a twelve month low of $27.50 and a twelve month high of $45.47.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its quarterly earnings results on Thursday, August 1st. The software maker reported $0.98 EPS for the quarter, beating the consensus estimate of $0.93 by $0.05. The business had revenue of $1.36 billion for the quarter, compared to analysts' expectations of $1.41 billion. Open Text had a net margin of 8.06% and a return on equity of 25.00%. Open Text's revenue was down 8.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.79 EPS. As a group, analysts forecast that Open Text will post 3.23 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. AustralianSuper Pty Ltd bought a new stake in shares of Open Text during the third quarter worth $8,011,000. Vanguard Group Inc. lifted its position in Open Text by 1.3% during the 1st quarter. Vanguard Group Inc. now owns 10,344,910 shares of the software maker's stock valued at $401,693,000 after purchasing an additional 135,812 shares during the period. Forge First Asset Management Inc. bought a new position in shares of Open Text in the 1st quarter valued at about $2,305,000. Value Partners Investments Inc. raised its stake in shares of Open Text by 2.2% during the third quarter. Value Partners Investments Inc. now owns 2,342,166 shares of the software maker's stock worth $77,947,000 after buying an additional 50,348 shares during the last quarter. Finally, Clearbridge Investments LLC lifted its stake in Open Text by 6.9% in the second quarter. Clearbridge Investments LLC now owns 2,954,755 shares of the software maker's stock valued at $88,754,000 after buying an additional 191,271 shares during the period. Institutional investors own 70.37% of the company's stock.

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.