Open Text Co. (NASDAQ:OTEX) Plans Dividend Increase - $0.44 Per Share

Open Text Co. (NASDAQ:OTEX - Get Free Report) TSE: OTC announced a quarterly dividend on Thursday, May 2nd, Zacks reports. Investors of record on Friday, May 31st will be given a dividend of 0.435 per share by the software maker on Tuesday, June 18th. This represents a $1.74 dividend on an annualized basis and a dividend yield of 5.75%. The ex-dividend date is Friday, May 31st. This is a boost from Open Text's previous quarterly dividend of $0.25.

Open Text has increased its dividend by an average of 10.5% per year over the last three years and has raised its dividend every year for the last 1 years. Open Text has a dividend payout ratio of 19.5% meaning its dividend is sufficiently covered by earnings. Analysts expect Open Text to earn $4.50 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 22.2%.

Open Text Stock Performance

Open Text stock traded down $5.22 during midday trading on Friday, reaching $30.25. 3,706,318 shares of the stock traded hands, compared to its average volume of 728,893. The firm has a fifty day moving average price of $37.32 and a two-hundred day moving average price of $38.73. Open Text has a fifty-two week low of $28.19 and a fifty-two week high of $45.47. The firm has a market cap of $8.25 billion, a price-to-earnings ratio of 48.79 and a beta of 1.11. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 2.10.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings data on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.10 by $0.01. The business had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.48 billion. Open Text had a return on equity of 24.61% and a net margin of 2.85%. On average, equities research analysts forecast that Open Text will post 4.14 earnings per share for the current year.

Analysts Set New Price Targets

OTEX has been the topic of a number of research analyst reports. Citigroup lowered their price target on Open Text from $42.00 to $37.00 and set a "neutral" rating on the stock in a report on Friday. Royal Bank of Canada restated an "outperform" rating and set a $53.00 price target on shares of Open Text in a research report on Friday, February 2nd. CIBC reduced their price target on shares of Open Text from $44.00 to $38.50 and set a "neutral" rating for the company in a research note on Friday. StockNews.com lowered shares of Open Text from a "buy" rating to a "hold" rating in a research note on Friday. Finally, BMO Capital Markets downgraded Open Text from an "outperform" rating to a "market perform" rating and cut their target price for the stock from $50.00 to $38.00 in a research report on Friday. Six investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $42.25.

About Open Text

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.