Open Text Co. (NASDAQ:OTEX) Receives $38.80 Consensus Target Price from Analysts

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has been assigned a consensus rating of “Hold” from the twelve research firms that are currently covering the firm, Marketbeat Ratings reports. Eight research analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $38.60.

Several equities research analysts have issued reports on the stock. Raymond James decreased their price objective on shares of Open Text from $55.00 to $48.00 and set an “outperform” rating for the company in a research note on Friday, May 3rd. StockNews.com upgraded shares of Open Text from a “hold” rating to a “buy” rating in a research note on Saturday, May 11th. National Bankshares downgraded 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. Barclays decreased their price objective on shares of Open Text from $38.00 to $36.00 and set an “equal weight” rating for the company in a research note on Monday, August 5th. Finally, TD Securities decreased their price objective on shares of Open Text from $54.00 to $40.00 and set a “buy” rating for the company in a research note on Friday, May 3rd.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Optiver Holding B.V. bought a new position in Open Text during the 4th quarter valued at $27,000. Ridgewood Investments LLC bought a new position in Open Text during the 2nd quarter valued at $30,000. Headlands Technologies LLC bought a new position in Open Text during the 1st quarter valued at $32,000. Assetmark Inc. bought a new position in Open Text during the 4th quarter valued at $48,000. Finally, EverSource Wealth Advisors LLC boosted its stake 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 acquiring an additional 334 shares during the last quarter. 70.37% of the stock is currently owned by institutional investors.

Open Text Stock Performance

Shares of OTEX stock opened at $30.22 on Friday. Open Text has a one year low of $27.50 and a one year high of $45.47. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.81 and a current ratio of 0.81. The company has a 50 day moving average price of $29.99 and a 200 day moving average price of $34.46. The firm has a market capitalization of $8.09 billion, a price-to-earnings ratio of 48.74 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, August 1st. The software maker reported $0.98 EPS for the quarter, topping the consensus estimate of $0.93 by $0.05. Open Text had a net margin of 8.06% and a return on equity of 25.00%. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.41 billion. During the same quarter in the prior year, the business posted $0.79 earnings per share. Open Text’s revenue for the quarter was down 8.6% compared to the same quarter last year. Sell-side analysts anticipate that Open Text will post 3.18 EPS for the current year.

Open Text Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 20th. Shareholders of record on Friday, August 30th will be paid a dividend of $0.192 per share. The ex-dividend date is Friday, August 30th. This represents a $0.77 dividend on an annualized basis and a yield of 2.54%. Open Text’s dividend payout ratio (DPR) is 161.29%.

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.