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

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has received a consensus recommendation of “Hold” from the eleven ratings firms that are presently covering the firm, MarketBeat reports. Eight analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $35.90.

Several brokerages have recently issued reports on OTEX. National Bankshares cut 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 research note on Friday, August 2nd. BMO Capital Markets lowered their price target on Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a research report on Friday, November 1st. Scotiabank cut their price objective on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a report on Friday, November 1st. National Bank Financial cut Open Text from an “outperform” rating to a “sector perform” rating in a report on Friday, August 2nd. Finally, Barclays cut 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, November 1st.

Institutional Trading of Open Text

A number of hedge funds have recently made changes to their positions in the stock. Brandes Investment Partners LP lifted its stake in Open Text by 236.8% during the second quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock worth $55,059,000 after purchasing an additional 1,290,011 shares during the last quarter. The Manufacturers Life Insurance Company lifted its position in shares of Open Text by 25.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock worth $167,277,000 after buying an additional 1,118,479 shares during the last quarter. Cooke & Bieler LP boosted its holdings in shares of Open Text by 18.6% in the 2nd quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock valued at $166,325,000 after buying an additional 867,978 shares during the period. JARISLOWSKY FRASER Ltd grew its position in shares of Open Text by 5.1% during the 2nd quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock valued at $471,415,000 after buying an additional 767,822 shares during the last quarter. Finally, National Bank of Canada FI raised its stake in 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 period. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Stock Performance

NASDAQ OTEX opened at $29.73 on Tuesday. The business’s 50-day moving average price is $32.42 and its 200 day moving average price is $31.31. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. Open Text has a twelve month low of $27.50 and a twelve month high of $45.47. The company has a market capitalization of $7.90 billion, a PE ratio of 17.18 and a beta of 1.13.

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

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be issued a $0.262 dividend. The ex-dividend date is Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a yield of 3.53%. This is an increase from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio is currently 60.69%.

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.