Open Text (NASDAQ:OTEX) Posts Earnings Results, Beats Expectations By $0.05 EPS

Open Text (NASDAQ:OTEX) (TSE:OTC) posted its quarterly earnings results on Wednesday. The software maker reported $1.05 EPS for the quarter, topping analysts’ consensus estimates of $1.00 by $0.05, Briefing.com reports. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The firm had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same period last year, the company earned $0.93 earnings per share. The business’s revenue for the quarter was up 1.5% on a year-over-year basis.

Open Text Price Performance

Shares of NASDAQ OTEX traded down $1.33 during mid-day trading on Friday, reaching $34.65. The company’s stock had a trading volume of 1,024,323 shares, compared to its average volume of 1,296,919. The stock has a 50-day moving average of $37.21 and a two-hundred day moving average of $31.75. The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.80 and a current ratio of 0.80. The stock has a market capitalization of $8.73 billion, a P/E ratio of 20.81 and a beta of 1.14. Open Text has a 1-year low of $22.79 and a 1-year high of $39.90.

Open Text Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 19th. Investors of record on Friday, December 5th will be paid a $0.275 dividend. This represents a $1.10 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend is Friday, December 5th. Open Text’s dividend payout ratio is currently 66.67%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on OTEX. National Bankshares set a $45.00 price objective on Open Text and gave the stock an “outperform” rating in a report on Thursday, October 23rd. Wall Street Zen raised shares of Open Text from a “hold” rating to a “buy” rating in a report on Saturday, August 9th. CIBC raised their price target on Open Text from $34.00 to $40.00 and gave the company a “neutral” rating in a research report on Wednesday, October 29th. Citigroup lifted their price target on Open Text from $31.00 to $38.00 and gave the stock a “neutral” rating in a research note on Thursday, October 30th. Finally, Scotiabank upgraded shares of Open Text from a “sector perform” rating to an “outperform” rating and raised their target price for the stock from $35.00 to $50.00 in a report on Wednesday, September 24th. Three investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $38.58.

Institutional Trading of Open Text

A number of hedge funds have recently bought and sold shares of the business. Osaic Holdings Inc. boosted its position in shares of Open Text by 108.8% during the 2nd quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker’s stock worth $52,000 after purchasing an additional 937 shares during the period. Headlands Technologies LLC raised its holdings in Open Text by 608.1% during the second quarter. Headlands Technologies LLC now owns 20,451 shares of the software maker’s stock worth $597,000 after purchasing an additional 17,563 shares in the last quarter. WealthCollab LLC lifted its position in shares of Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock worth $48,000 after buying an additional 464 shares during the last quarter. Vident Advisory LLC grew its position in Open Text by 17.5% during the 2nd quarter. Vident Advisory LLC now owns 13,729 shares of the software maker’s stock worth $400,000 after purchasing an additional 2,048 shares during the last quarter. Finally, Tidal Investments LLC lifted its position in Open Text by 2.6% during the 2nd quarter. Tidal Investments LLC now owns 18,059 shares of the software maker’s stock worth $527,000 after acquiring an additional 460 shares during the period. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Company Profile

Open Text Corporation provides information management software and solutions. The company offers content services, which includes content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation.