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

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has been assigned a consensus rating of “Hold” from the eleven ratings firms that are presently covering the firm, Marketbeat Ratings reports. Eight equities research analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $35.90.

A number of research firms have recently issued reports on OTEX. TD Securities cut their price target on shares of Open Text from $40.00 to $38.00 and set a “buy” 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 report on Friday, August 2nd. Citigroup lowered their price target 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 Bankshares downgraded Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price objective for the company. in a research note on Friday, August 2nd. Finally, BMO Capital Markets lowered their target price on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research note on Friday, November 1st.

Open Text Stock Down 2.0 %

Shares of Open Text stock opened at $28.25 on Tuesday. Open Text has a 12-month low of $27.50 and a 12-month high of $45.47. The firm has a market capitalization of $7.51 billion, a PE ratio of 16.33 and a beta of 1.13. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.54. The stock’s fifty day moving average is $32.21 and its 200-day moving average is $31.11.

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

Open Text Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be given a dividend of $0.262 per share. This represents a $1.05 annualized dividend and a yield of 3.71%. The ex-dividend date of this dividend is Friday, November 29th. This is a positive change from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio (DPR) is presently 60.69%.

Institutional Trading of Open Text

Several large investors have recently added to or reduced their stakes in OTEX. Forsta AP Fonden boosted its holdings in Open Text by 27.5% in the first quarter. Forsta AP Fonden now owns 78,900 shares of the software maker’s stock worth $3,064,000 after purchasing an additional 17,000 shares in the last quarter. Headlands Technologies LLC bought a new stake in shares of Open Text during the 1st quarter worth about $32,000. Forge First Asset Management Inc. acquired a new position in shares of Open Text during the 1st quarter valued at about $2,305,000. Mitsubishi UFJ Trust & Banking Corp raised its stake in shares of Open Text by 3.7% in the 1st quarter. Mitsubishi UFJ Trust & Banking Corp now owns 182,142 shares of the software maker’s stock valued at $7,010,000 after acquiring an additional 6,500 shares in the last quarter. Finally, Intech Investment Management LLC acquired a new stake in Open Text in the 1st quarter worth approximately $762,000. 70.37% of the stock is owned by institutional investors.

About Open Text

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.