Open Text Co. (NASDAQ:OTEX) Receives $35.55 Average Price Target from Brokerages

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has been given a consensus recommendation of “Hold” by the twelve ratings firms that are covering the firm, MarketBeat Ratings reports. Nine research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $35.55.

Several equities analysts have issued reports on OTEX shares. Royal Bank of Canada cut shares of Open Text from an “outperform” rating to a “sector perform” rating and decreased their price target for the company from $45.00 to $33.00 in a research report on Friday, November 1st. StockNews.com upgraded shares of Open Text from a “buy” rating to a “strong-buy” rating in a research note on Friday, January 3rd. UBS Group began coverage on shares of Open Text in a research report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 price objective on the stock. Barclays decreased their price objective on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a report on Friday, November 1st. Finally, Scotiabank reduced their price target on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research report on Friday, November 1st.

Open Text Stock Performance

Shares of NASDAQ:OTEX opened at $28.23 on Wednesday. Open Text has a 1 year low of $27.05 and a 1 year high of $45.47. The company’s 50 day simple moving average is $29.47 and its 200 day simple moving average is $30.98. 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 stock has a market capitalization of $7.47 billion, a price-to-earnings ratio of 16.32 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 (EPS) for the quarter, beating the consensus estimate of $0.80 by $0.13. The company had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.28 billion. Open Text had a net margin of 8.35% and a return on equity of 24.34%. The firm’s revenue was down 11.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.90 EPS. As a group, research analysts predict that Open Text will post 3.37 EPS for the current fiscal 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 given a $0.262 dividend. This represents a $1.05 dividend on an annualized basis and a yield of 3.71%. This is an increase from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Friday, November 29th. Open Text’s dividend payout ratio is presently 60.69%.

Hedge Funds Weigh In On Open Text

Several hedge funds have recently modified their holdings of the company. AustralianSuper Pty Ltd bought a new position in shares of Open Text in the third quarter valued at approximately $8,011,000. The Manufacturers Life Insurance Company boosted its position in Open Text by 1.1% in the third quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker’s stock worth $187,952,000 after purchasing an additional 63,620 shares during the last quarter. Natixis Advisors LLC bought a new position in Open Text in the 3rd quarter valued at $1,467,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its position in shares of Open Text by 126.1% during the 3rd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 86,260 shares of the software maker’s stock valued at $2,871,000 after purchasing an additional 48,111 shares during the last quarter. Finally, Stifel Financial Corp bought a new stake in shares of Open Text during the 3rd quarter worth $2,232,000. Institutional investors own 70.37% of the company’s stock.

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.