Open Text Corporation (NASDAQ:OTEX) Receives Average Recommendation of “Hold” from Analysts

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) have been assigned an average recommendation of “Hold” from the fourteen brokerages that are currently covering the company, MarketBeat Ratings reports. Eleven investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average twelve-month target price among brokers that have covered the stock in the last year is $35.75.

A number of equities research analysts have commented on OTEX shares. Zacks Research cut shares of Open Text from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Open Text in a report on Monday, December 29th. TD Securities raised shares of Open Text to a “hold” rating in a research report on Monday, February 2nd. Citigroup decreased their target price on Open Text from $36.00 to $26.00 and set a “neutral” rating for the company in a research report on Friday, February 6th. Finally, Raymond James Financial dropped their price target on Open Text from $48.00 to $42.00 and set an “outperform” rating on the stock in a research note on Friday, February 6th.

Open Text Price Performance

Shares of OTEX opened at $22.25 on Friday. The firm has a market cap of $5.46 billion, a PE ratio of 13.09 and a beta of 1.08. Open Text has a 52-week low of $21.82 and a 52-week high of $39.90. The business’s 50 day moving average price is $25.00 and its two-hundred day moving average price is $31.78. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.94 and a current ratio of 0.94.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, February 5th. The software maker reported $1.13 earnings per share for the quarter, beating the consensus estimate of $1.04 by $0.09. Open Text had a net margin of 8.42% and a return on equity of 23.60%. The company had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the previous year, the business posted $1.11 EPS. Open Text’s revenue for the quarter was down .6% compared to the same quarter last year. On average, equities analysts anticipate that Open Text will post 3.45 EPS for the current year.

Open Text Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Friday, March 6th were issued a dividend of $0.275 per share. The ex-dividend date was Friday, March 6th. This represents a $1.10 annualized dividend and a dividend yield of 4.9%. Open Text’s payout ratio is currently 64.71%.

Hedge Funds Weigh In On Open Text

A number of large investors have recently modified their holdings of the company. Picton Mahoney Asset Management bought a new stake in shares of Open Text during the third quarter worth about $11,668,000. Cidel Asset Management Inc. lifted its position in Open Text by 4.5% in the 3rd quarter. Cidel Asset Management Inc. now owns 973,317 shares of the software maker’s stock valued at $36,389,000 after acquiring an additional 41,867 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. lifted its position in Open Text by 456.0% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 2,312,755 shares of the software maker’s stock valued at $86,429,000 after acquiring an additional 1,896,755 shares in the last quarter. Arkadios Wealth Advisors boosted its stake in Open Text by 596.6% during the 3rd quarter. Arkadios Wealth Advisors now owns 83,192 shares of the software maker’s stock valued at $3,110,000 after purchasing an additional 71,249 shares during the last quarter. Finally, Munich Reinsurance Co Stock Corp in Munich bought a new stake in Open Text during the 3rd quarter worth approximately $10,052,000. 70.37% of the stock is currently owned by institutional investors.

About Open Text

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.