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

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) have earned an average rating of “Hold” from the twelve ratings firms that are currently covering the company, MarketBeat reports. Nine equities research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price target among analysts that have covered the stock in the last year is $35.27.

Several research analysts have recently commented on OTEX shares. TD Securities cut their price objective on Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a report on Monday, December 30th. UBS Group started coverage on shares of Open Text in a research report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 price target for the company. Barclays lowered their price target 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. Scotiabank lowered their price objective on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a report on Friday, November 1st. 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 on the stock in a research note on Friday, November 1st.

Institutional Investors Weigh In On Open Text

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. American Century Companies Inc. increased its position in shares of Open Text by 13.6% during the second quarter. American Century Companies Inc. now owns 92,871 shares of the software maker’s stock worth $2,789,000 after acquiring an additional 11,127 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Open Text by 6.1% in the second quarter. Dimensional Fund Advisors LP now owns 787,619 shares of the software maker’s stock valued at $23,660,000 after acquiring an additional 45,380 shares during the period. Sei Investments Co. acquired a new stake in shares of Open Text during the second quarter worth about $4,829,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp boosted its holdings in shares of Open Text by 186.0% in the second quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 38,149 shares of the software maker’s stock valued at $1,146,000 after acquiring an additional 24,810 shares in the last quarter. Finally, Cubist Systematic Strategies LLC lifted its stake in shares of Open Text by 1,699.8% in the second quarter. Cubist Systematic Strategies LLC now owns 82,577 shares of the software maker’s stock valued at $2,478,000 after purchasing an additional 77,989 shares during the period. Hedge funds and other institutional investors own 70.37% of the company’s stock.

Open Text Trading Up 0.7 %

Shares of OTEX opened at $28.84 on Friday. The firm has a market cap of $7.61 billion, a price-to-earnings ratio of 16.67 and a beta of 1.12. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79. The business’s fifty day moving average is $28.91 and its 200-day moving average is $30.75. Open Text has a 52-week low of $26.84 and a 52-week high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, topping 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 during the quarter, compared to the consensus estimate of $1.28 billion. During the same period last year, the business posted $0.90 EPS. The business’s revenue was down 11.0% compared to the same quarter last year. Equities analysts anticipate 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 was paid on Friday, December 20th. Investors of record on Friday, November 29th were given a dividend of $0.262 per share. The ex-dividend date of this dividend was 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 3.63%. Open Text’s payout ratio is presently 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.