Open Text Corporation (NASDAQ:OTEX) Given Consensus Rating of “Hold” by Analysts

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) have been assigned a consensus recommendation of “Hold” from the fourteen research firms that are covering the firm, Marketbeat reports. Ten equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $39.4167.

Several equities research analysts recently commented on OTEX shares. Citigroup upped their price target on shares of Open Text from $31.00 to $38.00 and gave the company a “neutral” rating in a research report on Thursday, October 30th. Zacks Research upgraded Open Text from a “hold” rating to a “strong-buy” rating in a report on Wednesday, November 12th. TD Cowen reiterated a “hold” rating and set a $40.00 price target on shares of Open Text in a report on Friday, October 3rd. Jefferies Financial Group upped their price target on Open Text from $33.00 to $35.00 and gave the company a “hold” rating in a research report on Thursday, November 6th. Finally, Scotiabank upgraded Open Text from a “sector perform” rating to an “outperform” rating and raised their price objective for the stock from $35.00 to $50.00 in a research report on Wednesday, September 24th.

Open Text Trading Down 0.4%

NASDAQ:OTEX opened at $33.25 on Wednesday. The stock has a fifty day simple moving average of $35.85 and a 200 day simple moving average of $33.05. The firm has a market capitalization of $8.38 billion, a price-to-earnings ratio of 17.41 and a beta of 1.08. Open Text has a 1-year low of $22.79 and a 1-year high of $39.90. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 1.60.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Wednesday, November 5th. The software maker reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $1.00 by $0.05. The company had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.27 billion. Open Text had a net margin of 9.60% and a return on equity of 23.44%. The business’s quarterly revenue was up 1.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.93 earnings per share. Sell-side analysts forecast that Open Text will post 3.45 earnings per share for the current year.

Open Text Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, December 19th. Investors of record on Friday, December 5th will be issued a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Friday, December 5th. Open Text’s dividend payout ratio (DPR) is currently 57.59%.

Institutional Investors Weigh In On Open Text

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in OTEX. JARISLOWSKY FRASER Ltd grew its holdings in shares of Open Text by 0.6% during the 3rd quarter. JARISLOWSKY FRASER Ltd now owns 21,150,154 shares of the software maker’s stock valued at $790,736,000 after acquiring an additional 117,436 shares in the last quarter. Vanguard Group Inc. boosted its position in Open Text by 2.0% during the third quarter. Vanguard Group Inc. now owns 11,689,086 shares of the software maker’s stock valued at $436,926,000 after purchasing an additional 229,758 shares during the last quarter. First Trust Advisors LP grew its stake in Open Text by 9.3% in the third quarter. First Trust Advisors LP now owns 9,027,450 shares of the software maker’s stock valued at $337,445,000 after purchasing an additional 765,366 shares in the last quarter. Brandes Investment Partners LP increased its position in Open Text by 42.7% in the 2nd quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker’s stock worth $244,356,000 after purchasing an additional 2,506,058 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of Open Text by 11.7% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker’s stock worth $225,898,000 after purchasing an additional 810,352 shares in the last quarter. Hedge funds and other institutional investors 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.