Open Text Corporation (NASDAQ:OTEX) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts give Open Text a consensus “Hold” rating: Of 14 brokerages, 10 rate the stock a hold, three recommend buying, and one recommends selling. The average 12-month price target is $32.46.
• Open Text exceeded quarterly expectations, reporting $1.23 in EPS versus the $1.02 consensus estimate and $1.33 billion in revenue, up 2.9% year over year.
• The company pays a quarterly dividend of $0.28 per share, equivalent to $1.12 annually and a 4.8% yield; institutional investors own approximately 70.4% of outstanding shares.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC has been given a consensus rating of "Hold" by the fourteen brokerages that are currently covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, ten have given a hold rating and three have issued a buy rating on the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $32.4583.

Several research firms have commented on OTEX. Raymond James Financial downgraded Open Text from an "outperform" rating to a "market perform" rating and dropped their target price for the company from $35.00 to $29.50 in a research report on Thursday, August 6th. UBS Group upped their price target on shares of Open Text from $25.00 to $27.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. Weiss Ratings reissued a "hold (c-)" rating on shares of Open Text in a research note on Wednesday, June 24th. Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, September 5th. Finally, Citigroup lifted their target price on Open Text from $25.00 to $28.00 and gave the stock a "neutral" rating in a report on Friday, August 7th.

Open Text Stock Performance

Shares of NASDAQ:OTEX opened at $23.52 on Friday. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.81 and a quick ratio of 0.81. Open Text has a 1 year low of $19.77 and a 1 year high of $39.90. The stock has a market capitalization of $5.69 billion, a price-to-earnings ratio of 9.12 and a beta of 1.02. The company's 50 day simple moving average is $24.06 and its 200 day simple moving average is $23.28.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.21. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.29 billion. Open Text had a return on equity of 25.76% and a net margin of 12.26%.Open Text's revenue for the quarter was up 2.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.97 EPS. As a group, research analysts predict that Open Text will post 3.72 EPS for the current fiscal year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be given a dividend of $0.28 per share. This is a positive change from Open Text's previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.12 annualized dividend and a dividend yield of 4.8%. Open Text's payout ratio is 43.41%.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Kimelman & Baird LLC acquired a new stake in Open Text in the second quarter valued at approximately $27,000. Global Retirement Partners LLC bought a new stake in Open Text in the 2nd quarter worth about $34,000. Caitong International Asset Management Co. Ltd increased its position in shares of Open Text by 5,096.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker's stock valued at $52,000 after acquiring an additional 1,580 shares during the last quarter. Allworth Financial LP bought a new stake in shares of Open Text during the 2nd quarter worth $53,000. Finally, PNC Financial Services Group Inc. raised its position in Open Text by 23.0% in the first quarter. PNC Financial Services Group Inc. now owns 4,117 shares of the software maker's stock worth $92,000 after acquiring an additional 769 shares during the period. Institutional investors and hedge funds own 70.37% of the company's stock.

Open Text Company Profile

Open Text Corporation NASDAQ: OTEX is a Canadian software company that develops enterprise information management solutions. Its products help organizations capture, manage, secure, govern and exchange business information across content, processes and communications.

The company offers software and services through areas that include content management, business process automation, customer experience management, business-to-business integration, data protection and cybersecurity. OpenText's portfolio supports cloud and on-premises deployments and is designed for use by businesses, governments and other large organizations.

Founded in 1991 and headquartered in Waterloo, Ontario, OpenText serves customers internationally across a broad range of industries and geographies.

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