Open Text Corporation (NASDAQ:OTEX) Given Consensus Recommendation of “Hold” by Analysts

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) has been given an average recommendation of “Hold” by the fourteen ratings firms that are currently covering the firm, MarketBeat reports. Ten investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $34.6667.

A number of analysts have recently issued reports on OTEX shares. Wall Street Zen upgraded shares of Open Text from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 9th. Royal Bank Of Canada decreased their price objective on shares of Open Text from $30.00 to $27.00 and set a “sector perform” rating for the company in a research report on Friday, May 8th. Scotia cut their price target on Open Text from $50.00 to $40.00 and set a “sector outperform” rating on the stock in a research note on Friday, May 8th. UBS Group set a $25.00 price target on Open Text in a research note on Friday, May 8th. Finally, Raymond James Financial cut their price target on Open Text from $42.00 to $35.00 and set an “outperform” rating on the stock in a research note on Friday, May 8th.

Institutional Trading of Open Text

Several institutional investors have recently added to or reduced their stakes in the stock. Cidel Asset Management Inc. increased its stake in Open Text by 4.5% during the third quarter. Cidel Asset Management Inc. now owns 973,317 shares of the software maker’s stock valued at $36,389,000 after purchasing an additional 41,867 shares during the last quarter. Picton Mahoney Asset Management bought a new stake in Open Text during the third quarter valued at $11,668,000. Connor Clark & Lunn Investment Management Ltd. increased its stake in Open Text by 456.0% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 2,312,755 shares of the software maker’s stock valued at $86,429,000 after purchasing an additional 1,896,755 shares during the last quarter. Munich Reinsurance Co Stock Corp in Munich bought a new stake in Open Text during the third quarter valued at $10,052,000. Finally, Arkadios Wealth Advisors increased its stake in Open Text by 596.6% during the third quarter. Arkadios Wealth Advisors now owns 83,192 shares of the software maker’s stock valued at $3,110,000 after purchasing an additional 71,249 shares during the last quarter. 70.37% of the stock is owned by institutional investors and hedge funds.

Open Text Stock Performance

NASDAQ:OTEX opened at $22.68 on Friday. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.56. The firm has a market capitalization of $5.50 billion, a price-to-earnings ratio of 11.06 and a beta of 1.04. The firm’s fifty day simple moving average is $22.92 and its 200 day simple moving average is $28.17. Open Text has a twelve month low of $20.00 and a twelve month high of $39.90.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, beating the consensus estimate of $0.94 by $0.07. Open Text had a return on equity of 24.77% and a net margin of 9.91%.The company had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period last year, the company posted $0.82 earnings per share. The firm’s revenue was up 2.2% compared to the same quarter last year. As a group, equities research analysts expect that Open Text will post 3.98 earnings per share for the current fiscal year.

Open Text Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Investors of record on Friday, June 5th will be issued a $0.275 dividend. The ex-dividend date of this dividend is Friday, June 5th. This represents a $1.10 annualized dividend and a yield of 4.9%. Open Text’s dividend payout ratio is currently 53.66%.

About Open Text

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.