Open Text Corporation (NASDAQ:OTEX) Receives Average Rating of “Hold” from Brokerages

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) have earned a consensus recommendation of “Hold” from the fourteen research firms that are presently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, ten have issued a hold recommendation and three have given a buy recommendation to the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $32.4583.

A number of brokerages have recently weighed in on OTEX. Royal Bank Of Canada dropped their price target on Open Text from $30.00 to $27.00 and set a “sector perform” rating on the stock in a research note on Friday, May 8th. Raymond James Financial cut shares of Open Text from an “outperform” rating to a “market perform” rating and lowered their target price for the stock from $35.00 to $29.50 in a research note on Thursday, August 6th. UBS Group boosted their target price on shares of Open Text from $25.00 to $27.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Wall Street Zen lowered shares of Open Text from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Scotia decreased their price target on shares of Open Text from $40.00 to $33.00 and set a “sector outperform” rating for the company in a report on Friday, August 7th.

Institutional Investors Weigh In On Open Text

A number of large investors have recently bought and sold shares of OTEX. The Manufacturers Life Insurance Company purchased a new position in Open Text during the 2nd quarter worth approximately $266,599,000. Norges Bank acquired a new stake in shares of Open Text in the fourth quarter worth $106,700,000. Cibc World Market Inc. purchased a new position in shares of Open Text during the second quarter worth $70,939,000. First Trust Advisors LP raised its holdings in shares of Open Text by 27.3% during the fourth quarter. First Trust Advisors LP now owns 11,493,714 shares of the software maker’s stock worth $374,394,000 after purchasing an additional 2,466,264 shares during the last quarter. Finally, BlackRock Inc. acquired a new position in Open Text during the second quarter valued at $46,144,000. Hedge funds and other institutional investors own 70.37% of the company’s stock.

Open Text Stock Down 0.3%

Open Text stock opened at $25.10 on Monday. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.81 and a quick ratio of 0.81. The stock has a market capitalization of $6.08 billion, a price-to-earnings ratio of 9.73 and a beta of 1.03. Open Text has a 1-year low of $19.77 and a 1-year high of $39.90. The business has a fifty day moving average price of $23.65 and a 200-day moving average price of $23.38.

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 firm had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the previous year, the business earned $0.97 EPS. The firm’s revenue for the quarter was up 2.9% on a year-over-year basis. Equities research analysts forecast 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. Stockholders of record on Friday, September 4th will be issued a $0.28 dividend. This is a boost from Open Text’s previous quarterly dividend of $0.28. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date of this dividend is Friday, September 4th. Open Text’s dividend payout ratio is currently 42.64%.

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.