Open Text Corporation (NASDAQ:OTEX) Stock to Pay Quarterly Dividend of $0.28

Key Points

• Open Text declared a quarterly dividend of $0.28 per share, payable December 18 to shareholders of record December 4. The annualized dividend is $1.12, yielding 4.3%.
• The dividend appears well covered: the current payout ratio is 26.9%, and analysts expect a 29.0% payout ratio based on next year’s projected earnings.
• Open Text beat quarterly EPS estimates, reporting $1.05 versus the $0.94 consensus, though revenue declined 4% year over year. Analysts’ consensus rating is Hold, with a $30.95 average price target.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC announced a quarterly dividend on Tuesday, November 3rd. Investors of record on Friday, December 4th will be paid a dividend of $0.28 per share by the software maker on Friday, December 18th. This represents a $1.12 annualized dividend and a dividend yield of 4.3%. The ex-dividend date is Friday, December 4th.

Open Text has a payout ratio of 26.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Open Text to earn $3.86 per share next year, which means the company should continue to be able to cover its $1.12 annual dividend with an expected future payout ratio of 29.0%.

Open Text Price Performance

OTEX stock traded down $0.47 during midday trading on Thursday, reaching $26.12. The stock had a trading volume of 1,836,419 shares, compared to its average volume of 1,936,618. Open Text has a 52-week low of $19.77 and a 52-week high of $38.29. 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 company's fifty day simple moving average is $24.41 and its 200 day simple moving average is $23.88. The company has a market cap of $6.31 billion, a price-to-earnings ratio of 10.12 and a beta of 0.98.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its earnings results on Thursday, November 5th. The software maker reported $1.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.94 by $0.11. Open Text had a net margin of 12.26% and a return on equity of 25.76%. Open Text's revenue was down 4.0% compared to the same quarter last year. During the same quarter last year, the business earned $1.05 earnings per share. As a group, sell-side analysts predict that Open Text will post 3.72 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on OTEX shares. Scotiabank dropped their price objective on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating for the company in a research note on Friday, August 7th. Zacks Research raised shares of Open Text from a "strong sell" rating to a "hold" rating in a research note on Monday, October 5th. Weiss Ratings raised shares of Open Text from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, October 14th. UBS Group boosted their target price on Open Text from $25.00 to $27.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Finally, Wall Street Zen upgraded Open Text from a "hold" rating to a "buy" rating in a research report on Saturday, September 5th. Three research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $30.95.

Open Text Company Profile

OpenText Corporation is a Canadian enterprise software company that develops solutions for managing, securing and exchanging business information. Its offerings help organizations organize content, automate business processes, connect with customers and partners, and manage information across cloud, on-premises and hybrid environments.

The company's portfolio includes enterprise content management, business network and integration services, customer experience tools, cybersecurity and information governance solutions, and software for managing enterprise applications and information technology operations.

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