Open Text Co. (OTEX) to Issue Quarterly Dividend of $0.26 on December 20th

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) declared a quarterly dividend on Thursday, October 31st, Zacks reports. Investors of record on Friday, November 29th will be given a dividend of 0.262 per share by the software maker on Friday, December 20th. This represents a $1.05 annualized dividend and a yield of 3.62%. The ex-dividend date is Friday, November 29th. This is a positive change from Open Text’s previous quarterly dividend of $0.19.

Open Text has increased its dividend by an average of 10.9% annually over the last three years. Open Text has a dividend payout ratio of 29.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Open Text to earn $3.66 per share next year, which means the company should continue to be able to cover its $1.05 annual dividend with an expected future payout ratio of 28.7%.

Open Text Stock Down 3.4 %

Shares of Open Text stock opened at $28.98 on Friday. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.81 and a current ratio of 0.81. Open Text has a 52-week low of $27.50 and a 52-week high of $45.47. The company’s 50 day moving average price is $32.73 and its 200-day moving average price is $31.58. The stock has a market capitalization of $7.70 billion, a price-to-earnings ratio of 16.95 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, August 1st. The software maker reported $0.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.93 by $0.05. The firm had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.41 billion. Open Text had a net margin of 8.06% and a return on equity of 25.00%. The company’s revenue for the quarter was down 8.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.79 earnings per share. Equities research analysts forecast that Open Text will post 3.23 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research firms have commented on OTEX. Royal Bank of Canada lowered Open Text from an “outperform” rating to a “sector perform” rating and lowered their price target for the company from $45.00 to $33.00 in a research report on Friday. Citigroup decreased their target price on Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a report on Friday. Barclays reduced their price objective on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a research report on Friday. TD Securities reduced their price target on Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a research note on Friday. Finally, National Bank Financial cut shares of Open Text from an “outperform” rating to a “sector perform” rating in a research report on Friday, August 2nd. Eight analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $35.90.

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.