Open Text Co. (NASDAQ:OTEX) Receives $35.55 Consensus Target Price from Analysts

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has earned an average rating of “Hold” from the twelve research firms that are covering the firm, MarketBeat Ratings reports. Nine research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $35.55.

OTEX has been the topic of several recent research reports. Scotiabank lowered their price objective on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research report on Friday, November 1st. UBS Group initiated coverage on shares of Open Text in a report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 price target on the stock. StockNews.com raised shares of Open Text from a “buy” rating to a “strong-buy” rating in a report on Friday. Citigroup lowered their target price on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a research note on Friday, November 1st. Finally, Royal Bank of Canada lowered Open Text from an “outperform” rating to a “sector perform” rating and cut their price target for the company from $45.00 to $33.00 in a research note on Friday, November 1st.

Open Text Stock Up 1.1 %

OTEX stock opened at $28.57 on Wednesday. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.79 and a quick ratio of 0.79. The firm’s fifty day simple moving average is $29.57 and its 200-day simple moving average is $30.97. Open Text has a 12 month low of $27.05 and a 12 month high of $45.47. The company has a market capitalization of $7.56 billion, a P/E ratio of 16.51 and a beta of 1.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.13. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The company had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same period last year, the firm earned $0.90 EPS. The firm’s revenue for the quarter was down 11.0% compared to the same quarter last year. As a group, equities research analysts forecast that Open Text will post 3.37 earnings per share for the current year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 20th. Shareholders of record on Friday, November 29th were issued a $0.262 dividend. The ex-dividend date of this dividend was Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a yield of 3.67%. This is a positive change from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio (DPR) is presently 60.69%.

Institutional Investors Weigh In On Open Text

A number of hedge funds have recently modified their holdings of the business. Franklin Resources Inc. grew its stake in Open Text by 19.9% during the 3rd quarter. Franklin Resources Inc. now owns 205,891 shares of the software maker’s stock valued at $7,086,000 after acquiring an additional 34,135 shares in the last quarter. Wilmington Savings Fund Society FSB purchased a new stake in shares of Open Text in the third quarter valued at approximately $499,000. Toronto Dominion Bank increased its holdings in shares of Open Text by 169.6% in the third quarter. Toronto Dominion Bank now owns 576,105 shares of the software maker’s stock valued at $19,173,000 after purchasing an additional 362,422 shares during the last quarter. Geode Capital Management LLC lifted its position in Open Text by 4.6% during the third quarter. Geode Capital Management LLC now owns 1,397,853 shares of the software maker’s stock worth $46,460,000 after buying an additional 61,696 shares in the last quarter. Finally, Public Employees Retirement System of Ohio acquired a new position in Open Text during the third quarter worth $1,521,000. 70.37% of the stock is currently owned by institutional investors and hedge funds.

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.