Zacks Investment Research Downgrades Open Text (OTEX) to Hold

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Open Text (NASDAQ:OTEX) (TSE:OTC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Saturday.

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. “

OTEX has been the topic of several other research reports. BidaskClub lowered Open Text from a “sell” rating to a “strong sell” rating in a research note on Thursday, November 8th. CIBC reissued an “average” rating and issued a $49.00 price objective on shares of Open Text in a research note on Friday, January 11th. Mitsubishi UFJ Financial Group boosted their price objective on Open Text to $43.00 in a research note on Monday, February 4th. Barclays reissued a “buy” rating on shares of Open Text in a research note on Thursday, November 1st. Finally, Royal Bank of Canada boosted their price objective on Open Text from $45.00 to $47.00 and gave the stock an “outperform” rating in a research note on Friday, February 1st. Three research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. Open Text has an average rating of “Buy” and an average price target of $45.30.

Shares of OTEX stock opened at $37.03 on Friday. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.69. The firm has a market capitalization of $9.95 billion, a P/E ratio of 40.69 and a beta of 0.54. Open Text has a one year low of $30.99 and a one year high of $40.01.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings results on Thursday, January 31st. The software maker reported $0.39 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.23 by $0.16. The business had revenue of $735.23 million for the quarter, compared to analyst estimates of $744.81 million. Open Text had a return on equity of 7.00% and a net margin of 9.19%. Research analysts expect that Open Text will post 0.83 earnings per share for the current fiscal year.

Institutional investors have recently bought and sold shares of the business. Highstreet Asset Management Inc. increased its holdings in Open Text by 31.6% in the fourth quarter. Highstreet Asset Management Inc. now owns 700,665 shares of the software maker’s stock valued at $22,839,000 after purchasing an additional 168,234 shares during the last quarter. AGF Investments Inc. increased its holdings in shares of Open Text by 4.8% in the fourth quarter. AGF Investments Inc. now owns 368,371 shares of the software maker’s stock worth $12,007,000 after acquiring an additional 16,735 shares in the last quarter. Massachusetts Financial Services Co. MA increased its holdings in shares of Open Text by 2.9% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 19,421 shares of the software maker’s stock worth $633,000 after acquiring an additional 552 shares in the last quarter. Doyle Wealth Management bought a new stake in shares of Open Text in the fourth quarter worth about $100,000. Finally, Letko Brosseau & Associates Inc. increased its holdings in shares of Open Text by 3.3% in the fourth quarter. Letko Brosseau & Associates Inc. now owns 38,445 shares of the software maker’s stock worth $1,253,000 after acquiring an additional 1,215 shares in the last quarter. 67.19% of the stock is currently owned by institutional investors.

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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