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

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) have earned a consensus recommendation of “Hold” from the twelve analysts that are currently covering the stock, Marketbeat reports. Nine investment analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $35.18.

A number of equities analysts have recently weighed in on the company. StockNews.com lowered Open Text from a “strong-buy” rating to a “buy” rating in a research note on Monday, January 27th. TD Securities lowered their price objective on Open Text from $38.00 to $35.00 and set a “buy” rating on the stock in a research report on Sunday, February 9th. UBS Group initiated coverage on Open Text in a report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 target price for the company. Citigroup upped their price target on shares of Open Text from $30.00 to $32.00 and gave the company a “neutral” rating in a research note on Friday, February 7th. Finally, BMO Capital Markets dropped their price objective on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a research note on Friday, November 1st.

Institutional Investors Weigh In On Open Text

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank bought a new position in shares of Open Text in the 4th quarter valued at $93,216,000. Arrowstreet Capital Limited Partnership grew its position in Open Text by 75.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 5,994,675 shares of the software maker’s stock valued at $169,555,000 after acquiring an additional 2,586,549 shares during the last quarter. JARISLOWSKY FRASER Ltd grew its position in Open Text by 11.8% in the fourth quarter. JARISLOWSKY FRASER Ltd now owns 18,547,256 shares of the software maker’s stock valued at $522,879,000 after acquiring an additional 1,957,695 shares during the last quarter. Criteria Caixa S.A.U. acquired a new position in Open Text during the fourth quarter worth about $32,890,000. Finally, Brandes Investment Partners LP lifted its holdings in shares of Open Text by 29.2% in the fourth quarter. Brandes Investment Partners LP now owns 4,504,139 shares of the software maker’s stock worth $127,557,000 after acquiring an additional 1,017,065 shares during the last quarter. 70.37% of the stock is currently owned by institutional investors.

Open Text Trading Down 1.3 %

OTEX stock opened at $27.48 on Thursday. The stock has a market cap of $7.25 billion, a price-to-earnings ratio of 11.17 and a beta of 1.12. The company has a fifty day moving average price of $28.46 and a two-hundred day moving average price of $30.48. Open Text has a one year low of $26.84 and a one year high of $40.55. The company has a debt-to-equity ratio of 1.50, a current ratio of 0.87 and a quick ratio of 0.87.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, February 6th. The software maker reported $1.02 EPS for the quarter, topping the consensus estimate of $0.92 by $0.10. Open Text had a net margin of 12.21% and a return on equity of 23.23%. Equities analysts anticipate that Open Text will post 3.45 EPS for the current year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 21st. Investors of record on Friday, March 7th will be paid a $0.2625 dividend. This represents a $1.05 dividend on an annualized basis and a yield of 3.82%. This is a boost from Open Text’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, March 7th. Open Text’s dividend payout ratio (DPR) is 42.68%.

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.