Open Text Co. (NASDAQ:OTEX) Receives Average Rating of “Hold” from Analysts

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has received an average recommendation of “Hold” from the eleven analysts that are currently covering the firm, MarketBeat.com reports. Eight research analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $35.90.

Several analysts have weighed in on OTEX shares. Barclays lowered their target price on Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a report on Friday, November 1st. BMO Capital Markets decreased their price objective on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a research note on Friday, November 1st. Scotiabank decreased their price objective on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research note on Friday, November 1st. Citigroup lowered their price target on Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a report on Friday, November 1st. Finally, Royal Bank of Canada cut 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 report on Friday, November 1st.

Hedge Funds Weigh In On Open Text

Institutional investors have recently made changes to their positions in the business. Ridgewood Investments LLC acquired a new position in shares of Open Text in the 2nd quarter valued at approximately $30,000. Blue Trust Inc. raised its position in shares of Open Text by 435.7% in the 3rd quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock valued at $32,000 after purchasing an additional 793 shares in the last quarter. Kimelman & Baird LLC acquired a new position in shares of Open Text in the 2nd quarter valued at approximately $36,000. Cromwell Holdings LLC increased its holdings in shares of Open Text by 29.6% in the 3rd quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock valued at $55,000 after acquiring an additional 380 shares during the last quarter. Finally, Essex LLC bought a new stake in shares of Open Text in the 3rd quarter valued at approximately $210,000. 70.37% of the stock is owned by institutional investors and hedge funds.

Open Text Trading Down 3.1 %

NASDAQ:OTEX opened at $30.67 on Friday. The stock has a fifty day moving average price of $31.46 and a two-hundred day moving average price of $31.02. The stock has a market capitalization of $8.15 billion, a price-to-earnings ratio of 17.73 and a beta of 1.11. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79. Open Text has a 1 year low of $27.50 and a 1 year high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted 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. The company had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.28 billion. Open Text had a return on equity of 24.34% and a net margin of 8.35%. Open Text’s revenue was down 11.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.90 earnings per share. As a group, sell-side analysts anticipate that Open Text will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be given a dividend of $0.262 per share. The ex-dividend date is Friday, November 29th. This is a positive change from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 annualized dividend and a yield of 3.42%. Open Text’s payout ratio is 60.69%.

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.