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

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has been assigned a consensus recommendation of “Hold” from the twelve ratings firms that are covering the company, Marketbeat Ratings reports. Nine equities research analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $35.18.

Several brokerages have recently weighed in on OTEX. TD Securities cut their price objective on Open Text from $38.00 to $35.00 and set a “buy” rating for the company in a report on Sunday, February 9th. UBS Group started coverage on Open Text in a research report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 target price on the stock. Citigroup boosted their target price on Open Text from $30.00 to $32.00 and gave the stock a “neutral” rating in a research report on Friday, February 7th. Barclays boosted their target price on Open Text from $34.00 to $36.00 and gave the stock an “equal weight” rating in a research report on Friday, February 7th. Finally, Royal Bank of Canada cut their target price on Open Text from $33.00 to $31.00 and set a “sector perform” rating on the stock in a research report on Friday, February 7th.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of OTEX. IFP Advisors Inc boosted its stake in Open Text by 103.8% during the 4th quarter. IFP Advisors Inc now owns 1,011 shares of the software maker’s stock valued at $29,000 after purchasing an additional 515 shares during the period. Blue Trust Inc. boosted its stake in Open Text by 40.8% during the 4th quarter. Blue Trust Inc. now owns 1,373 shares of the software maker’s stock valued at $39,000 after purchasing an additional 398 shares during the period. Aquatic Capital Management LLC bought a new stake in Open Text during the 4th quarter valued at approximately $60,000. Generali Asset Management SPA SGR bought a new stake in Open Text during the 4th quarter valued at approximately $62,000. Finally, Allworth Financial LP boosted its stake in Open Text by 20.7% during the 4th quarter. Allworth Financial LP now owns 2,564 shares of the software maker’s stock valued at $73,000 after purchasing an additional 439 shares during the period. 70.37% of the stock is owned by institutional investors and hedge funds.

Open Text Price Performance

Shares of NASDAQ OTEX opened at $26.06 on Monday. Open Text has a twelve month low of $24.86 and a twelve month high of $40.55. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.50. The company has a market capitalization of $6.88 billion, a price-to-earnings ratio of 10.59 and a beta of 1.17. The business has a 50 day simple moving average of $27.69 and a 200-day simple moving average of $29.87.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, February 6th. The software maker reported $1.02 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.92 by $0.10. Open Text had a return on equity of 23.23% and a net margin of 12.21%. As a group, equities research analysts expect that Open Text will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 21st. Shareholders of record on Friday, March 7th will be given a $0.2625 dividend. This is a positive change from Open Text’s previous quarterly dividend of $0.26. This represents a $1.05 annualized dividend and a yield of 4.03%. The ex-dividend date of this dividend is Friday, March 7th. Open Text’s dividend payout ratio is presently 42.68%.

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.