Open Text Co. (NASDAQ:OTEX) Receives $38.60 Average Price Target from Analysts

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has received an average recommendation of “Hold” from the twelve analysts that are currently covering the stock, Marketbeat Ratings reports. Eight analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $38.80.

Several research analysts recently commented on the stock. Jefferies Financial Group cut their price objective on shares of Open Text from $42.00 to $35.00 and set a “buy” rating for the company in a report on Friday, August 2nd. BMO Capital Markets reduced their price target on Open Text from $38.00 to $33.00 and set a “market perform” rating for the company in a research report on Friday, August 2nd. Barclays decreased their price objective on Open Text from $38.00 to $36.00 and set an “equal weight” rating on the stock in a research note on Monday, August 5th. National Bankshares downgraded Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 target price for the company. in a research note on Friday, August 2nd. Finally, CIBC decreased their price target on Open Text from $36.00 to $33.00 and set a “neutral” rating on the stock in a research report on Friday, July 19th.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in OTEX. EverSource Wealth Advisors LLC raised its stake in shares of Open Text by 18.0% during the fourth quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock worth $92,000 after acquiring an additional 334 shares in the last quarter. Chase Investment Counsel Corp lifted its stake in Open Text by 6.9% in the first quarter. Chase Investment Counsel Corp now owns 8,232 shares of the software maker’s stock worth $319,000 after purchasing an additional 528 shares during the last quarter. Optiver Holding B.V. purchased a new stake in Open Text during the fourth quarter valued at about $27,000. Headlands Technologies LLC bought a new position in shares of Open Text during the first quarter valued at about $32,000. Finally, Vanguard Personalized Indexing Management LLC increased its holdings in shares of Open Text by 5.3% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 17,436 shares of the software maker’s stock worth $524,000 after buying an additional 874 shares during the period. Institutional investors own 70.37% of the company’s stock.

Open Text Stock Performance

NASDAQ:OTEX opened at $33.01 on Monday. Open Text has a 1 year low of $27.50 and a 1 year high of $45.47. The company has a debt-to-equity ratio of 1.51, a current ratio of 0.81 and a quick ratio of 0.81. The business has a fifty day simple moving average of $31.49 and a two-hundred day simple moving average of $32.46. The company has a market capitalization of $8.91 billion, a P/E ratio of 53.23 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, August 1st. The software maker reported $0.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 return on equity of 25.00% and a net margin of 8.06%. The firm’s quarterly revenue was down 8.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.79 EPS. On average, analysts expect that Open Text will post 3.23 earnings per share for the current year.

Open Text Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 20th. Shareholders of record on Friday, August 30th were given a dividend of $0.192 per share. The ex-dividend date was Friday, August 30th. This represents a $0.77 annualized dividend and a yield of 2.33%. Open Text’s payout ratio is presently 169.35%.

About Open Text

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.