Open Text Co. (NASDAQ:OTEX) Increases Dividend to $0.44 Per Share

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) declared a quarterly dividend on Thursday, May 2nd, Zacks reports. Stockholders of record on Friday, May 31st will be given a dividend of 0.435 per share by the software maker on Tuesday, June 18th. This represents a $1.74 dividend on an annualized basis and a dividend yield of 5.75%. The ex-dividend date is Friday, May 31st. This is a positive change from Open Text’s previous quarterly dividend of $0.25.

Open Text has raised its dividend by an average of 10.5% per year over the last three years and has raised its dividend annually for the last 1 consecutive years. Open Text has a payout ratio of 19.5% meaning its dividend is sufficiently covered by earnings. Analysts expect Open Text to earn $4.50 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 22.2%.

Open Text Price Performance

NASDAQ OTEX traded down $5.22 during trading hours on Friday, reaching $30.25. The company’s stock had a trading volume of 3,706,318 shares, compared to its average volume of 728,893. The company has a market capitalization of $8.25 billion, a price-to-earnings ratio of 48.79 and a beta of 1.11. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 2.10. Open Text has a 1 year low of $28.19 and a 1 year high of $45.47. The firm’s 50-day moving average price is $37.32 and its 200-day moving average price is $38.70.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, February 1st. The software maker reported $1.11 earnings per share for the quarter, topping analysts’ consensus estimates of $1.10 by $0.01. The firm had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.48 billion. Open Text had a net margin of 2.85% and a return on equity of 24.61%. On average, equities research analysts predict that Open Text will post 4.14 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on OTEX shares. CIBC cut their price objective on Open Text from $44.00 to $38.50 and set a “neutral” rating for the company in a research report on Friday. TD Securities cut their price target on Open Text from $54.00 to $40.00 and set a “buy” rating for the company in a report on Friday. Jefferies Financial Group decreased their price objective on Open Text from $45.00 to $42.00 and set a “buy” rating on the stock in a report on Friday. BMO Capital Markets lowered shares of Open Text from an “outperform” rating to a “market perform” rating and cut their target price for the company from $50.00 to $38.00 in a report on Friday. Finally, Citigroup decreased their price target on shares of Open Text from $42.00 to $37.00 and set a “neutral” rating on the stock in a research note on Friday. Six analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $42.25.

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.