Open Text (NASDAQ:OTEX) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a hold rating in a research report released on Friday, Zacks.com 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. “

Several other equities analysts have also recently issued reports on OTEX. Benchmark restated a buy rating and issued a $48.00 price target (up from $42.00) on shares of Open Text in a research report on Thursday, July 11th. BidaskClub upgraded shares of Open Text from a sell rating to a hold rating in a research report on Friday, May 3rd. Raymond James set a $48.00 price target on shares of Open Text and gave the company an outperform rating in a research report on Friday, July 19th. Finally, CIBC restated a buy rating and issued a $53.00 price target on shares of Open Text in a research report on Monday, July 29th. Two equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. The stock currently has an average rating of Buy and an average target price of $46.73.

NASDAQ OTEX traded down $3.64 on Friday, hitting $38.76. The company’s stock had a trading volume of 1,491,751 shares, compared to its average volume of 559,472. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.38 and a current ratio of 1.38. Open Text has a 1-year low of $30.99 and a 1-year high of $44.49. The stock’s 50-day simple moving average is $42.17. The company has a market capitalization of $11.50 billion, a price-to-earnings ratio of 36.57 and a beta of 0.53.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings results on Thursday, August 1st. The software maker reported $0.27 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.37 by ($0.10). Open Text had a net margin of 9.57% and a return on equity of 7.31%. The business had revenue of $747.20 million during the quarter, compared to analyst estimates of $763.51 million. During the same quarter last year, the company posted $0.72 earnings per share. The company’s revenue was down .9% compared to the same quarter last year. As a group, research analysts expect that Open Text will post 1.59 earnings per share for the current fiscal year.

Several institutional investors and hedge funds have recently bought and sold shares of OTEX. Hillsdale Investment Management Inc. lifted its position in shares of Open Text by 0.7% during the second quarter. Hillsdale Investment Management Inc. now owns 98,300 shares of the software maker’s stock valued at $4,053,000 after purchasing an additional 700 shares in the last quarter. Swiss National Bank lifted its position in shares of Open Text by 5.4% during the second quarter. Swiss National Bank now owns 991,500 shares of the software maker’s stock valued at $40,912,000 after purchasing an additional 50,900 shares in the last quarter. DekaBank Deutsche Girozentrale lifted its position in shares of Open Text by 195.5% during the second quarter. DekaBank Deutsche Girozentrale now owns 15,300 shares of the software maker’s stock valued at $631,000 after purchasing an additional 10,123 shares in the last quarter. Saturna Capital CORP bought a new position in shares of Open Text during the second quarter valued at about $1,891,000. Finally, Aperio Group LLC lifted its position in shares of Open Text by 10.3% during the second quarter. Aperio Group LLC now owns 198,775 shares of the software maker’s stock valued at $8,190,000 after purchasing an additional 18,618 shares in the last quarter. Institutional investors own 67.34% 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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