Open Text Corporation (NASDAQ:OTEX) Receives Consensus Rating of “Hold” from Analysts

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) has earned an average recommendation of “Hold” from the fourteen analysts that are currently covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, ten have assigned a hold recommendation and three have given a buy recommendation to the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $32.4583.

Several equities analysts have commented on the stock. National Bank Financial dropped their price target on shares of Open Text from $45.00 to $33.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Zacks Research lowered Open Text from a “hold” rating to a “strong sell” rating in a report on Friday, August 21st. Wall Street Zen raised Open Text from a “hold” rating to a “buy” rating in a research note on Saturday, September 5th. Weiss Ratings restated a “hold (c-)” rating on shares of Open Text in a report on Monday. Finally, Scotiabank reduced their price target on 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.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brandes Investment Partners LP grew its stake in shares of Open Text by 1.2% during the fourth quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker’s stock worth $296,679,000 after purchasing an additional 106,766 shares in the last quarter. The Manufacturers Life Insurance Company acquired a new stake in Open Text in the second quarter valued at $266,599,000. Royal Bank of Canada lifted its holdings in Open Text by 10.9% during the 1st quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker’s stock worth $218,920,000 after buying an additional 965,385 shares during the last quarter. Letko Brosseau & Associates Inc. lifted its holdings in Open Text by 0.5% during the 4th quarter. Letko Brosseau & Associates Inc. now owns 5,681,093 shares of the software maker’s stock worth $185,260,000 after buying an additional 27,825 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Open Text during the 4th quarter worth about $106,700,000. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Stock Down 0.4%

Shares of NASDAQ:OTEX opened at $22.99 on Friday. The firm has a market capitalization of $5.56 billion, a PE ratio of 8.91 and a beta of 1.02. Open Text has a 1 year low of $19.77 and a 1 year high of $39.90. 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 firm’s 50-day moving average is $24.06 and its two-hundred day moving average is $23.24.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, beating analysts’ consensus estimates of $1.02 by $0.21. The firm had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.29 billion. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The business’s quarterly revenue was up 2.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.97 earnings per share. Analysts predict that Open Text will post 3.72 EPS for the current year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were issued a $0.28 dividend. This represents a $1.12 annualized dividend and a yield of 4.9%. This is a positive change from Open Text’s previous quarterly dividend of $0.28. The ex-dividend date of this dividend was Friday, September 4th. Open Text’s dividend payout ratio is 43.41%.

Open Text Company Profile

Open Text Corporation (NASDAQ: OTEX) is a Canadian software company that develops enterprise information management solutions. Its products help organizations capture, manage, secure, govern and exchange business information across content, processes and communications.

The company offers software and services through areas that include content management, business process automation, customer experience management, business-to-business integration, data protection and cybersecurity. OpenText’s portfolio supports cloud and on-premises deployments and is designed for use by businesses, governments and other large organizations.

Founded in 1991 and headquartered in Waterloo, Ontario, OpenText serves customers internationally across a broad range of industries and geographies.