Open Text Co. (NASDAQ:OTEX) Receives $35.90 Consensus PT from Analysts

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has earned an average recommendation of “Hold” from the eleven brokerages that are presently covering the stock, MarketBeat Ratings reports. Eight research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $35.90.

A number of equities analysts have weighed in on the stock. Scotiabank cut 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, November 1st. Barclays cut their price objective on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a report on Friday, November 1st. Citigroup lowered their target price on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a report on Friday, November 1st. BMO Capital Markets cut their price target on Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st. Finally, Royal Bank of Canada lowered Open Text from an “outperform” rating to a “sector perform” rating and decreased their price objective for the company from $45.00 to $33.00 in a research note on Friday, November 1st.

Open Text Stock Down 0.5 %

Open Text stock opened at $30.53 on Friday. 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 company has a market capitalization of $8.12 billion, a P/E ratio of 17.65 and a beta of 1.11. The firm has a 50 day moving average price of $31.41 and a 200-day moving average price of $31.02. Open Text has a twelve month low of $27.50 and a twelve month high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share (EPS) 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 business had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same period last year, the business posted $0.90 earnings per share. The business’s revenue for the quarter was down 11.0% on a year-over-year basis. As a group, equities analysts predict that Open Text will post 3.37 EPS for the current year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Stockholders of record on Friday, November 29th will be given a dividend of $0.262 per share. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.43%. The ex-dividend date of this dividend is Friday, November 29th. This is an increase from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio (DPR) is 60.69%.

Institutional Investors Weigh In On Open Text

A number of institutional investors and hedge funds have recently bought and sold shares of OTEX. Franklin Resources Inc. grew its position in Open Text by 19.9% in the third quarter. Franklin Resources Inc. now owns 205,891 shares of the software maker’s stock worth $7,086,000 after acquiring an additional 34,135 shares in the last quarter. Wilmington Savings Fund Society FSB bought a new stake in Open Text during the third quarter worth about $499,000. Toronto Dominion Bank boosted its holdings in shares of Open Text by 169.6% in the 3rd quarter. Toronto Dominion Bank now owns 576,105 shares of the software maker’s stock worth $19,173,000 after purchasing an additional 362,422 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Open Text by 4.6% during the 3rd quarter. Geode Capital Management LLC now owns 1,397,853 shares of the software maker’s stock valued at $46,460,000 after purchasing an additional 61,696 shares during the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Open Text during the 3rd quarter valued at about $1,521,000. 70.37% of the stock is owned by hedge funds and other 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.