Open Text Corporation (OTEX) - What Are Researchers Saying About This Stock?

Key Points

• Analyst consensus is “Hold”: Ten of 13 analysts maintain hold ratings, while three recommend buying. The average 12-month price target is $30.95, with recent target changes ranging from $27.00 to $33.00.
• Open Text reported better-than-expected quarterly results: Earnings per share came in at $1.23 versus the $1.02 consensus estimate, while revenue reached $1.33 billion, up 2.9% year over year.
• Institutional ownership remains significant and the dividend increased: Hedge funds and other institutions own 70.37% of the stock, while Open Text raised its quarterly dividend to $0.28 per share, representing a 4.6% annualized yield.

Shares of Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC have earned an average recommendation of "Hold" from the thirteen research firms that are covering the stock, MarketBeat.com reports. Ten investment analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $30.95.

OTEX has been the subject of several recent research reports. Wall Street Zen upgraded shares of Open Text from a "hold" rating to a "buy" rating in a report on Saturday, September 5th. Scotia dropped their price objective on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating on the stock in a research note on Friday, August 7th. UBS Group increased their price objective on shares of Open Text from $25.00 to $27.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. Scotiabank cut their price objective on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating on the stock in a report on Friday, August 7th. Finally, Raymond James Financial downgraded shares of Open Text from an "outperform" rating to a "market perform" rating and reduced their price objective for the stock from $35.00 to $29.50 in a research note on Thursday, August 6th.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Ridgewood Investments LLC raised its position in shares of Open Text by 1.4% in the 3rd quarter. Ridgewood Investments LLC now owns 67,238 shares of the software maker's stock worth $1,507,000 after acquiring an additional 936 shares in the last quarter. Sequoia Financial Advisors LLC lifted its stake in shares of Open Text by 8.3% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 17,506 shares of the software maker's stock worth $388,000 after purchasing an additional 1,337 shares during the last quarter. Tidal Investments LLC boosted its position in Open Text by 797.0% during the second quarter. Tidal Investments LLC now owns 300,997 shares of the software maker's stock valued at $6,667,000 after purchasing an additional 267,440 shares in the last quarter. Engineers Gate Manager LP boosted its position in Open Text by 807.5% during the second quarter. Engineers Gate Manager LP now owns 88,032 shares of the software maker's stock valued at $1,950,000 after purchasing an additional 78,332 shares in the last quarter. Finally, Nykredit A S bought a new stake in Open Text during the second quarter valued at about $179,000. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Open Text Stock Performance

Shares of Open Text stock opened at $24.18 on Tuesday. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.43. The stock's fifty day moving average price is $23.79 and its 200-day moving average price is $23.16. The firm has a market cap of $5.85 billion, a P/E ratio of 9.37 and a beta of 1.01. Open Text has a 12 month low of $19.77 and a 12 month high of $39.90.

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

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Friday, September 4th were given a dividend of $0.28 per share. This is a boost from Open Text's previous quarterly dividend of $0.2750. The ex-dividend date of this dividend was Friday, September 4th. This represents a $1.12 annualized dividend and a yield of 4.6%. Open Text's payout ratio is 43.41%.

Open Text Company Profile

OpenText Corporation NASDAQ: OTEX is a Canadian enterprise software company that provides information management solutions for organizations worldwide. Its products help businesses create, capture, manage, secure, exchange and analyze content and data across digital operations.

The company's portfolio includes enterprise content management, business process management, customer experience management, secure file transfer, cybersecurity, IT operations management, analytics and developer tools.

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