Open Text Co. (NASDAQ:OTEX) Plans Dividend Increase – $0.26 Per Share

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) announced a quarterly dividend on Thursday, October 31st, Zacks reports. Shareholders of record on Friday, November 29th will be paid a dividend of 0.262 per share by the software maker on Friday, December 20th. This represents a $1.05 dividend on an annualized basis and a yield of 3.62%. The ex-dividend date is Friday, November 29th. This is a boost from Open Text’s previous quarterly dividend of $0.19.

Open Text has increased its dividend by an average of 10.9% per year over the last three years. Open Text has a dividend payout ratio of 29.1% meaning its dividend is sufficiently covered by earnings. Analysts expect Open Text to earn $3.66 per share next year, which means the company should continue to be able to cover its $1.05 annual dividend with an expected future payout ratio of 28.7%.

Open Text Trading Down 3.4 %

Shares of Open Text stock opened at $28.98 on Friday. Open Text has a 1-year low of $27.50 and a 1-year high of $45.47. The company’s fifty day simple moving average is $32.73 and its 200-day simple moving average is $31.58. The stock has a market capitalization of $7.70 billion, a PE ratio of 16.95 and a beta of 1.12. The company has a debt-to-equity ratio of 1.51, a current ratio of 0.81 and a quick ratio of 0.81.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, August 1st. The software maker reported $0.98 earnings per share for the quarter, beating analysts’ consensus estimates of $0.93 by $0.05. Open Text had a return on equity of 25.00% and a net margin of 8.06%. The firm had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.41 billion. During the same period in the previous year, the firm earned $0.79 EPS. The business’s quarterly revenue was down 8.6% on a year-over-year basis. As a group, equities analysts anticipate that Open Text will post 3.23 earnings per share for the current year.

Wall Street Analysts Forecast Growth

OTEX has been the topic of several recent analyst reports. BMO Capital Markets decreased their price objective on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research report on Friday. 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. Scotiabank dropped their target price on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research report on Friday. Barclays reduced their price target on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, National Bankshares downgraded shares of Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price objective for the company. in a report on Friday, August 2nd. Eight research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $35.90.

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.