Analysts Set Open Text Co. (NASDAQ:OTEX) Target Price at $42.25

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has earned an average rating of “Hold” from the eleven ratings firms that are presently covering the company, MarketBeat.com reports. Six analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $42.25.

A number of research analysts recently weighed in on OTEX shares. TD Securities dropped their price target on shares of Open Text from $54.00 to $40.00 and set a “buy” rating on the stock in a research report on Friday, May 3rd. Jefferies Financial Group dropped their target price on shares of Open Text from $45.00 to $42.00 and set a “buy” rating on the stock in a research report on Friday, May 3rd. Scotiabank reaffirmed a “sector perform” rating on shares of Open Text in a report on Friday, May 3rd. Barclays dropped their price target on Open Text from $44.00 to $38.00 and set an “equal weight” rating on the stock in a report on Friday, May 3rd. Finally, National Bankshares reduced their price objective on Open Text from $60.00 to $50.00 and set an “outperform” rating for the company in a research note on Friday, May 3rd.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Optiver Holding B.V. purchased a new stake in shares of Open Text during the fourth quarter worth $27,000. Pacifica Partners Inc. bought a new stake in shares of Open Text during the 4th quarter valued at $32,000. Headlands Technologies LLC purchased a new stake in Open Text during the 1st quarter worth about $32,000. Assetmark Inc. bought a new position in Open Text in the 4th quarter worth about $48,000. Finally, EverSource Wealth Advisors LLC grew its holdings in Open Text by 18.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock valued at $92,000 after buying an additional 334 shares in the last quarter. 70.37% of the stock is owned by institutional investors.

Open Text Stock Performance

Shares of OTEX opened at $29.32 on Friday. Open Text has a 52 week low of $27.54 and a 52 week high of $45.47. The company has a debt-to-equity ratio of 2.01, a quick ratio of 1.40 and a current ratio of 1.40. The stock has a 50 day moving average price of $31.76 and a two-hundred day moving average price of $37.29. The firm has a market capitalization of $7.91 billion, a P/E ratio of 47.29 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings results on Thursday, May 2nd. The software maker reported $0.84 EPS for the quarter, beating analysts’ consensus estimates of $0.81 by $0.03. Open Text had a return on equity of 24.45% and a net margin of 2.85%. The business had revenue of $1.45 billion during the quarter, compared to analyst estimates of $1.43 billion. Equities analysts forecast that Open Text will post 3.79 earnings per share for the current fiscal year.

Open Text Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 18th. Shareholders of record on Friday, May 31st will be issued a dividend of $0.435 per share. The ex-dividend date is Friday, May 31st. This is an increase from Open Text’s previous quarterly dividend of $0.25. This represents a $1.74 annualized dividend and a yield of 5.93%. Open Text’s dividend payout ratio is 159.68%.

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.