Open Text Co. (NASDAQ:OTEX) Declares Quarterly Dividend of $0.26

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) announced a quarterly dividend on Tuesday, October 29th,Zacks Dividends reports. Investors of record on Friday, November 29th will be paid a dividend of 0.262 per share by the software maker on Friday, December 20th. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.49%. The ex-dividend date of this dividend is Friday, November 29th. This is an increase from Open Text’s previous quarterly dividend of $0.19.

Open Text has increased its dividend payment by an average of 10.9% per year over the last three years. Open Text has a dividend payout ratio of 28.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect Open Text to earn $3.74 per share next year, which means the company should continue to be able to cover its $1.05 annual dividend with an expected future payout ratio of 28.1%.

Open Text Price Performance

Shares of NASDAQ:OTEX opened at $30.02 on Wednesday. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.54. Open Text has a fifty-two week low of $27.50 and a fifty-two week high of $45.47. The firm has a 50-day simple moving average of $31.81 and a 200 day simple moving average of $31.02. The company has a market cap of $7.98 billion, a PE ratio of 17.35 and a beta of 1.13.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, beating analysts’ consensus estimates of $0.80 by $0.13. Open Text had a net margin of 8.35% and a return on equity of 24.34%. The business had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter in the prior year, the firm earned $0.90 EPS. The company’s revenue for the quarter was down 11.0% compared to the same quarter last year. On average, sell-side analysts anticipate that Open Text will post 3.37 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on OTEX. National Bank Financial lowered shares of Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. BMO Capital Markets reduced their target price on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a research note on Friday, November 1st. Jefferies Financial Group reduced their target price on shares of Open Text from $42.00 to $35.00 and set a “buy” rating for the company in a research note on Friday, August 2nd. Scotiabank reduced their target price on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research note on Friday, November 1st. Finally, TD Securities reduced their target price on shares of Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a research note on Friday, November 1st. Eight equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $35.90.

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.