Open Text Co. (NASDAQ:OTEX) Given Consensus Recommendation of “Hold” by Brokerages

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has been given an average rating of “Hold” by the twelve research firms that are covering the firm, Marketbeat.com reports. Nine research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $35.18.

Several brokerages recently issued reports on OTEX. Scotiabank decreased their price target on Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a report on Friday, November 1st. Citigroup upped their price objective on Open Text from $30.00 to $32.00 and gave the company a “neutral” rating in a research note on Friday, February 7th. BMO Capital Markets dropped their price target on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research report on Friday, November 1st. StockNews.com cut Open Text from a “strong-buy” rating to a “buy” rating in a research report on Monday, January 27th. Finally, Royal Bank of Canada dropped their price objective on Open Text from $33.00 to $31.00 and set a “sector perform” rating on the stock in a report on Friday, February 7th.

Hedge Funds Weigh In On Open Text

Institutional investors have recently modified their holdings of the company. Norges Bank bought a new position in Open Text during the 4th quarter worth approximately $93,216,000. Arrowstreet Capital Limited Partnership grew its position in Open Text by 75.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 5,994,675 shares of the software maker’s stock worth $169,555,000 after acquiring an additional 2,586,549 shares during the last quarter. JARISLOWSKY FRASER Ltd grew its position in Open Text by 11.8% during the 4th quarter. JARISLOWSKY FRASER Ltd now owns 18,547,256 shares of the software maker’s stock worth $522,879,000 after acquiring an additional 1,957,695 shares during the last quarter. Criteria Caixa S.A.U. bought a new position in Open Text during the 4th quarter worth approximately $32,890,000. Finally, Brandes Investment Partners LP grew its position in Open Text by 29.2% during the 4th quarter. Brandes Investment Partners LP now owns 4,504,139 shares of the software maker’s stock worth $127,557,000 after acquiring an additional 1,017,065 shares during the last quarter. 70.37% of the stock is currently owned by institutional investors.

Open Text Price Performance

Shares of OTEX opened at $26.55 on Thursday. Open Text has a 52-week low of $26.41 and a 52-week high of $40.55. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.87 and a current ratio of 0.87. The business’s 50 day moving average price is $28.27 and its two-hundred day moving average price is $30.42. The firm has a market cap of $7.01 billion, a PE ratio of 10.79 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, February 6th. The software maker reported $1.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.10. Open Text had a return on equity of 23.23% and a net margin of 12.21%. On average, equities analysts anticipate that Open Text will post 3.45 EPS for the current year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 21st. Stockholders of record on Friday, March 7th will be given a dividend of $0.2625 per share. The ex-dividend date of this dividend is Friday, March 7th. This is a positive change from Open Text’s previous quarterly dividend of $0.26. This represents a $1.05 annualized dividend and a dividend yield of 3.95%. Open Text’s dividend payout ratio is 42.68%.

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.