Open Text Corporation (NASDAQ:OTEX) Receives Average Recommendation of “Hold” from Analysts

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) has been assigned a consensus recommendation of “Hold” from the fourteen analysts that are currently covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and three have given a buy rating to the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $32.4583.

OTEX has been the topic of several research analyst reports. Raymond James Financial lowered shares of Open Text from an “outperform” rating to a “market perform” rating and dropped their target price for the company from $35.00 to $29.50 in a research report on Thursday, August 6th. Scotiabank decreased their price target on shares of Open Text from $40.00 to $33.00 and set a “sector outperform” rating on the stock in a research note on Friday, August 7th. National Bank Financial cut their price objective on Open Text from $45.00 to $33.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Royal Bank Of Canada reduced their target price on Open Text from $30.00 to $27.00 and set a “sector perform” rating for the company in a report on Friday, May 8th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Open Text in a research report on Wednesday, June 24th.

Institutional Investors Weigh In On Open Text

Several institutional investors and hedge funds have recently added to or reduced their stakes in OTEX. Tidal Investments LLC boosted its stake in Open Text by 2.6% during the second quarter. Tidal Investments LLC now owns 18,059 shares of the software maker’s stock worth $527,000 after buying an additional 460 shares during the last quarter. WealthCollab LLC increased its stake in shares of Open Text by 39.5% in the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock worth $48,000 after acquiring an additional 464 shares during the last quarter. Byrne Asset Management LLC increased its stake in shares of Open Text by 11.5% in the 2nd quarter. Byrne Asset Management LLC now owns 4,837 shares of the software maker’s stock worth $107,000 after acquiring an additional 500 shares during the last quarter. Vident Advisory LLC raised its holdings in shares of Open Text by 3.7% during the 4th quarter. Vident Advisory LLC now owns 15,715 shares of the software maker’s stock worth $512,000 after acquiring an additional 555 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Open Text by 39.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock valued at $59,000 after acquiring an additional 570 shares during the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Stock Performance

Shares of OTEX stock opened at $25.10 on Monday. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.43. Open Text has a 12-month low of $19.77 and a 12-month high of $39.90. The business’s 50 day moving average is $23.65 and its two-hundred day moving average is $23.36. The company has a market capitalization of $6.08 billion, a P/E ratio of 9.73 and a beta of 1.03.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.21. Open Text had a return on equity of 25.76% and a net margin of 12.26%.The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the prior year, the company posted $0.97 EPS. The business’s quarterly revenue was up 2.9% on a year-over-year basis. Analysts expect that Open Text will post 3.72 EPS for the current fiscal year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be paid a $0.28 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.12 annualized dividend and a yield of 4.5%. This is an increase from Open Text’s previous quarterly dividend of $0.28. Open Text’s dividend payout ratio is currently 43.41%.

Open Text Company Profile

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.