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

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) have received a consensus rating of “Hold” from the eleven brokerages that are currently covering the company, Marketbeat Ratings reports. Eight research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average twelve-month price target among brokers that have covered the stock in the last year is $35.90.

Several equities research analysts have recently commented on OTEX shares. TD Securities reduced their target price on Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a report on Friday, November 1st. BMO Capital Markets reduced their target price on Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st. Scotiabank dropped their price target on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research report on Friday, November 1st. Barclays dropped their price target on Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a research report on Friday, November 1st. Finally, Citigroup dropped their price target on Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a research report on Friday, November 1st.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in OTEX. Franklin Resources Inc. boosted its stake in Open Text by 19.9% during the 3rd quarter. Franklin Resources Inc. now owns 205,891 shares of the software maker’s stock valued at $7,086,000 after purchasing an additional 34,135 shares during the period. Wilmington Savings Fund Society FSB bought a new stake in shares of Open Text in the 3rd quarter worth approximately $499,000. Toronto Dominion Bank lifted its position in shares of Open Text by 169.6% in the 3rd quarter. Toronto Dominion Bank now owns 576,105 shares of the software maker’s stock worth $19,173,000 after acquiring an additional 362,422 shares during the period. Geode Capital Management LLC lifted its position in shares of Open Text by 4.6% in the 3rd quarter. Geode Capital Management LLC now owns 1,397,853 shares of the software maker’s stock worth $46,460,000 after acquiring an additional 61,696 shares during the period. Finally, Public Employees Retirement System of Ohio bought a new stake in shares of Open Text in the 3rd quarter worth approximately $1,521,000. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Price Performance

Shares of OTEX opened at $30.67 on Friday. Open Text has a 12 month low of $27.50 and a 12 month high of $45.47. The company has a market cap of $8.15 billion, a P/E ratio of 17.73 and a beta of 1.11. The stock has a fifty day moving average price of $31.46 and a 200 day moving average price of $31.02. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.79 and a quick ratio of 0.79.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.80 by $0.13. The company 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 company’s revenue for the quarter was down 11.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.90 earnings per share. On average, research analysts forecast that Open Text will post 3.37 earnings per share for the current year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 20th. Stockholders of record on Friday, November 29th will be issued a dividend of $0.262 per share. 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 dividend on an annualized basis and a dividend yield of 3.42%. Open Text’s dividend payout ratio is currently 60.69%.

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.