Open Text Co. (NASDAQ:OTEX) Receives Average Rating of “Hold” from Analysts

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) have received a consensus recommendation of “Hold” from the eleven research firms that are currently covering the stock, MarketBeat.com reports. Eight investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $35.90.

A number of equities analysts have recently weighed in 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 research report on Friday, August 2nd. National Bankshares lowered Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price target on the stock. in a research note on Friday, August 2nd. Citigroup decreased their price objective on Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a report on Friday, November 1st. National Bank Financial lowered Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. Finally, Royal Bank of Canada lowered Open Text from an “outperform” rating to a “sector perform” rating and decreased their price target for the stock from $45.00 to $33.00 in a research note on Friday, November 1st.

Open Text Stock Performance

Open Text stock opened at $28.83 on Tuesday. Open Text has a fifty-two week low of $27.50 and a fifty-two week high of $45.47. The company has a market capitalization of $7.67 billion, a price-to-earnings ratio of 16.66 and a beta of 1.13. The stock has a fifty day moving average of $32.21 and a two-hundred day moving average of $31.17. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 EPS for the quarter, topping analysts’ consensus estimates of $0.80 by $0.13. The firm had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.28 billion. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The firm’s quarterly revenue was down 11.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.90 EPS. On average, analysts anticipate that Open Text will post 3.37 EPS for the current fiscal year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be issued a $0.262 dividend. This is a positive change from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Friday, November 29th. This represents a $1.05 annualized dividend and a yield of 3.64%. Open Text’s dividend payout ratio (DPR) is presently 60.69%.

Institutional Investors Weigh In On Open Text

Large investors have recently made changes to their positions in the business. Brandes Investment Partners LP boosted its position in Open Text by 236.8% during the 2nd quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock worth $55,059,000 after purchasing an additional 1,290,011 shares during the period. The Manufacturers Life Insurance Company lifted its stake in shares of Open Text by 25.1% during the second quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock worth $167,277,000 after purchasing an additional 1,118,479 shares in the last quarter. Cooke & Bieler LP boosted its position in shares of Open Text by 18.6% in the second quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock worth $166,325,000 after buying an additional 867,978 shares during the period. JARISLOWSKY FRASER Ltd grew its stake in shares of Open Text by 5.1% in the second quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock valued at $471,415,000 after buying an additional 767,822 shares in the last quarter. Finally, National Bank of Canada FI raised its holdings in shares of Open Text by 17.5% during the 2nd quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock valued at $120,390,000 after buying an additional 599,790 shares during the period. Institutional investors and hedge funds 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.