Open Text Co. (NASDAQ:OTEX) Receives $35.90 Average Price Target from Analysts

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) have been assigned an average rating of “Hold” from the eleven brokerages that are currently covering the stock, MarketBeat reports. Eight investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $35.90.

A number of equities analysts have issued reports on the stock. National Bank Financial cut shares of Open Text from an “outperform” rating to a “sector perform” rating in a report on Friday, August 2nd. Barclays reduced their price objective on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a research report on Friday, November 1st. National Bankshares lowered Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 target price on the stock. in a research report on Friday, August 2nd. Jefferies Financial Group reduced their price target on shares of Open Text from $42.00 to $35.00 and set a “buy” rating for the company in a report on Friday, August 2nd. Finally, Royal Bank of Canada lowered shares of Open Text from an “outperform” rating to a “sector perform” rating and lowered their price target for the stock from $45.00 to $33.00 in a research report on Friday, November 1st.

Open Text Price Performance

Shares of NASDAQ OTEX opened at $28.25 on Tuesday. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. The company has a market capitalization of $7.51 billion, a price-to-earnings ratio of 16.33 and a beta of 1.13. Open Text has a twelve month low of $27.50 and a twelve month high of $45.47. The business has a 50 day simple moving average of $32.21 and a 200-day simple moving average of $31.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.13. Open Text had a net margin of 8.35% and a return on equity of 24.34%. The firm had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.28 billion. During the same quarter in the previous year, the firm earned $0.90 earnings per share. The firm’s revenue for the quarter was down 11.0% compared to the same quarter last year. As a group, equities research analysts expect that Open Text will post 3.37 earnings per share for the current year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Stockholders of record on Friday, November 29th will be paid a $0.262 dividend. This is a positive change from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.71%. The ex-dividend date of this dividend is Friday, November 29th. Open Text’s dividend payout ratio is currently 60.69%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Brandes Investment Partners LP boosted its stake in Open Text by 236.8% during the 2nd quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock valued at $55,059,000 after purchasing an additional 1,290,011 shares in the last quarter. The Manufacturers Life Insurance Company boosted its stake in Open Text by 25.1% during the second quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock valued at $167,277,000 after buying an additional 1,118,479 shares in the last quarter. Cooke & Bieler LP raised its position in Open Text by 18.6% in the second quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock worth $166,325,000 after acquiring an additional 867,978 shares in the last quarter. JARISLOWSKY FRASER Ltd lifted its holdings in Open Text by 5.1% in the 2nd quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock valued at $471,415,000 after acquiring an additional 767,822 shares during the last quarter. Finally, National Bank of Canada FI boosted its position in shares of Open Text by 17.5% during the 2nd quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock valued at $120,390,000 after purchasing an additional 599,790 shares in the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

About Open Text

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.