Open Text Co. (NASDAQ:OTEX) Receives Consensus Recommendation of "Hold" from Brokerages

Shares of Open Text Co. (NASDAQ:OTEX - Get Free Report) TSE: OTC have been given an average rating of "Hold" by the eleven ratings firms that are presently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and two have given a buy rating to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $32.30.

OTEX has been the subject of several recent analyst reports. UBS Group decreased their target price on shares of Open Text from $32.00 to $28.00 and set a "neutral" rating for the company in a report on Friday, May 2nd. Royal Bank of Canada decreased their price objective on shares of Open Text from $31.00 to $30.00 and set a "sector perform" rating for the company in a research note on Tuesday, April 22nd. Citigroup boosted their target price on shares of Open Text from $29.00 to $43.00 and gave the company a "negative" rating in a research note on Friday, May 2nd. Scotiabank decreased their target price on Open Text from $35.00 to $30.00 and set a "sector perform" rating for the company in a research report on Monday, April 28th. Finally, Barclays lowered their price target on Open Text from $36.00 to $29.00 and set an "equal weight" rating on the stock in a report on Monday, April 21st.

Institutional Investors Weigh In On Open Text

Several large investors have recently made changes to their positions in OTEX. Choreo LLC acquired a new stake in Open Text in the fourth quarter valued at approximately $564,000. Allspring Global Investments Holdings LLC lifted its stake in shares of Open Text by 30.9% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 166,476 shares of the software maker's stock valued at $4,705,000 after purchasing an additional 39,266 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in shares of Open Text in the 4th quarter valued at $3,572,000. BNP Paribas Financial Markets boosted its holdings in Open Text by 154.5% in the fourth quarter. BNP Paribas Financial Markets now owns 28,233 shares of the software maker's stock worth $800,000 after purchasing an additional 17,140 shares in the last quarter. Finally, Vontobel Holding Ltd. increased its position in Open Text by 6.5% during the fourth quarter. Vontobel Holding Ltd. now owns 59,351 shares of the software maker's stock worth $1,677,000 after buying an additional 3,600 shares during the last quarter. Institutional investors own 70.37% of the company's stock.

Open Text Price Performance

Shares of NASDAQ OTEX traded up $0.10 during mid-day trading on Friday, reaching $28.46. The company had a trading volume of 1,176,915 shares, compared to its average volume of 863,818. The company has a 50-day moving average price of $26.49 and a two-hundred day moving average price of $27.58. The stock has a market cap of $7.37 billion, a PE ratio of 11.57 and a beta of 1.15. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.50. Open Text has a 1-year low of $22.79 and a 1-year high of $34.20.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its quarterly earnings results on Wednesday, April 30th. The software maker reported $0.82 earnings per share for the quarter, beating analysts' consensus estimates of $0.81 by $0.01. The business had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.28 billion. Open Text had a return on equity of 23.23% and a net margin of 12.21%. Open Text's revenue for the quarter was down 13.3% on a year-over-year basis. During the same quarter last year, the company posted $0.94 EPS. On average, equities analysts anticipate that Open Text will post 3.45 earnings per share for the current year.

Open Text Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 20th. Stockholders of record on Friday, June 6th will be issued a dividend of $0.2625 per share. The ex-dividend date of this dividend is Friday, June 6th. This represents a $1.05 annualized dividend and a dividend yield of 3.69%. Open Text's dividend payout ratio is 42.86%.

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.