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

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) have been given an average rating of “Hold” by the eleven research firms that are currently covering the stock, MarketBeat.com reports. Seven research analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $38.89.

A number of analysts have recently issued reports on OTEX shares. CIBC lowered their price objective 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. National Bankshares cut Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price objective on the stock. in a research report on Friday, August 2nd. Barclays decreased their price target 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. Jefferies Financial Group decreased their price target on Open Text from $42.00 to $35.00 and set a “buy” rating on the stock in a research note on Friday, August 2nd. Finally, Citigroup boosted their price target on Open Text from $32.00 to $34.00 and gave the company a “neutral” rating in a research note on Wednesday, September 25th.

Open Text Stock Performance

Shares of NASDAQ OTEX opened at $33.32 on Friday. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.51. The business’s 50 day moving average is $32.71 and its two-hundred day moving average is $31.74. The company has a market cap of $8.85 billion, a P/E ratio of 19.49 and a beta of 1.12. Open Text has a 12 month low of $27.50 and a 12 month high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, August 1st. The software maker reported $0.98 EPS for the quarter, topping the consensus estimate of $0.93 by $0.05. The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.41 billion. Open Text had a return on equity of 25.00% and a net margin of 8.06%. The company’s revenue for the quarter was down 8.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.79 EPS. On average, equities analysts expect that Open Text will post 3.23 EPS for the current year.

Open Text Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 20th. Shareholders of record on Friday, August 30th were paid a $0.192 dividend. This represents a $0.77 dividend on an annualized basis and a yield of 2.30%. The ex-dividend date was Friday, August 30th. Open Text’s dividend payout ratio is currently 61.40%.

Institutional Investors Weigh In On Open Text

A number of institutional investors and hedge funds have recently made changes to their positions in the company. JARISLOWSKY FRASER Ltd raised its position in shares of Open Text by 5.1% during the second quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock worth $471,415,000 after acquiring an additional 767,822 shares during the last quarter. Vanguard Group Inc. raised its position in shares of Open Text by 1.3% during the first quarter. Vanguard Group Inc. now owns 10,344,910 shares of the software maker’s stock worth $401,693,000 after acquiring an additional 135,812 shares during the last quarter. The Manufacturers Life Insurance Company raised its position 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 acquiring an additional 1,118,479 shares during the last quarter. Cooke & Bieler LP raised its position in shares of Open Text by 18.6% during the second quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock worth $166,325,000 after acquiring an additional 867,978 shares during the last quarter. Finally, National Bank of Canada FI raised its position in shares of Open Text by 17.5% during the second quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock worth $120,390,000 after acquiring an additional 599,790 shares during the last quarter. Institutional investors 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.