Open Text Corporation (OTEX) – What Are Brokerages Thinking About This Stock?

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) has been assigned a consensus rating of “Hold” from the twelve research firms that are covering the firm, Marketbeat Ratings reports. Nine research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $30.72.

OTEX has been the subject of a number of research analyst reports. UBS Group raised their price target on Open Text from $25.00 to $27.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. Weiss Ratings upgraded shares of Open Text from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, October 14th. Scotiabank reduced their price objective on shares of Open Text from $40.00 to $33.00 and set a “sector outperform” rating on the stock in a research report on Friday, August 7th. Citigroup upped their price objective on shares of Open Text from $25.00 to $28.00 and gave the stock a “neutral” rating in a report on Friday, August 7th. Finally, Raymond James Financial cut shares of Open Text from an “outperform” rating to a “market perform” rating and dropped their target price for the stock from $35.00 to $29.50 in a research report on Thursday, August 6th.

Open Text Trading Up 1.6%

OTEX opened at $24.96 on Friday. Open Text has a one year low of $19.77 and a one year high of $35.26. The company has a debt-to-equity ratio of 1.39, a current ratio of 0.85 and a quick ratio of 0.85. The business has a 50 day simple moving average of $24.45 and a two-hundred day simple moving average of $23.78. The firm has a market capitalization of $6.03 billion, a price-to-earnings ratio of 5.95 and a beta of 0.98.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, November 5th. The software maker reported $1.05 earnings per share for the quarter, topping analysts’ consensus estimates of $0.94 by $0.11. Open Text had a return on equity of 25.23% and a net margin of 12.54%. The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period last year, the company earned $1.05 EPS. The business’s quarterly revenue was down 4.0% compared to the same quarter last year. Analysts predict that Open Text will post 3.72 EPS for the current year.

Open Text Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Friday, December 4th will be given a dividend of $0.28 per share. The ex-dividend date is Friday, December 4th. This represents a $1.12 annualized dividend and a dividend yield of 4.5%. Open Text’s payout ratio is currently 42.42%.

Hedge Funds Weigh In On Open Text

Institutional investors have recently bought and sold shares of the stock. Advisors Asset Management Inc. bought a new stake in Open Text during the 3rd quarter valued at approximately $669,000. Landscape Capital Management L.L.C. purchased a new position in shares of Open Text during the 3rd quarter worth approximately $1,958,000. Public Sector Pension Investment Board raised its position in shares of Open Text by 19.7% in the 3rd quarter. Public Sector Pension Investment Board now owns 744,593 shares of the software maker’s stock worth $16,694,000 after acquiring an additional 122,487 shares in the last quarter. Global Retirement Partners LLC raised its position in shares of Open Text by 30.5% in the 3rd quarter. Global Retirement Partners LLC now owns 2,021 shares of the software maker’s stock worth $45,000 after acquiring an additional 472 shares in the last quarter. Finally, Virtus Advisers LLC raised its position in shares of Open Text by 1.1% in the 3rd quarter. Virtus Advisers LLC now owns 91,430 shares of the software maker’s stock worth $2,050,000 after acquiring an additional 980 shares in the last quarter. 70.37% of the stock is owned by institutional investors.

About Open Text

OpenText (NASDAQ: OTEX) develops software that helps organizations manage, secure and use business information. Its offerings include tools for content management, process automation, business-to-business data exchange, analytics, artificial intelligence and cybersecurity, delivered through cloud-based and on-premises products. Founded in 1991 and headquartered in Waterloo, Ontario, OpenText serves businesses and public-sector organizations around the world. The company’s history includes major acquisitions, including its 2023 acquisition of Micro Focus, which broadened its enterprise software portfolio.