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

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) have been assigned a consensus rating of “Hold” from the eleven brokerages that are currently covering the firm, MarketBeat Ratings reports. Eight investment analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $35.90.

OTEX has been the subject of a number of research analyst reports. TD Securities reduced their target price on Open Text from $40.00 to $38.00 and set a “buy” rating for the company 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 report on Friday, November 1st. Jefferies Financial Group reduced their target price on shares of Open Text from $42.00 to $35.00 and set a “buy” rating for the company in a research report on Friday, August 2nd. CIBC lowered their price target on shares of Open Text from $36.00 to $33.00 and set a “neutral” rating on the stock in a research report on Friday, July 19th. Finally, Scotiabank decreased their target price on shares of 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.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Forsta AP Fonden increased its stake in Open Text by 27.5% in the first quarter. Forsta AP Fonden now owns 78,900 shares of the software maker’s stock valued at $3,064,000 after purchasing an additional 17,000 shares during the last quarter. Headlands Technologies LLC purchased a new stake in shares of Open Text in the first quarter valued at approximately $32,000. Forge First Asset Management Inc. purchased a new position in shares of Open Text in the 1st quarter valued at about $2,305,000. Mitsubishi UFJ Trust & Banking Corp boosted its stake in shares of Open Text by 3.7% during the 1st quarter. Mitsubishi UFJ Trust & Banking Corp now owns 182,142 shares of the software maker’s stock worth $7,010,000 after acquiring an additional 6,500 shares in the last quarter. Finally, Intech Investment Management LLC purchased a new stake in shares of Open Text in the 1st quarter worth about $762,000. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Open Text Stock Performance

Shares of OTEX stock opened at $28.94 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. Open Text has a 12-month low of $27.50 and a 12-month high of $45.47. The business’s 50 day moving average is $32.32 and its two-hundred day moving average is $31.23. The company has a market capitalization of $7.69 billion, a P/E ratio of 16.82 and a beta of 1.13.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.80 by $0.13. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The firm had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same quarter last year, the firm posted $0.90 EPS. The business’s revenue was down 11.0% on a year-over-year basis. Analysts expect that Open Text will post 3.37 EPS for the current fiscal year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Shareholders of record on Friday, November 29th will be paid a dividend of $0.262 per share. The ex-dividend date of this dividend is Friday, November 29th. 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 yield of 3.62%. Open Text’s dividend payout ratio is 60.69%.

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.