Open Text Corporation (NASDAQ:OTEX) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analysts have an average recommendation of Hold on Open Text from 14 firms (11 hold, 3 buy), with an average 12‑month price target of $35.33.
• The company recently beat quarterly expectations, reporting EPS of $1.13 vs. consensus $1.04 and revenue of $1.32 billion vs. $1.29 billion, though revenue was down 0.6% year‑over‑year.
• Open Text pays a quarterly dividend of $0.275 (annualized $1.10) for a yield of 4.7%, and its shares trade around $23.36 with a P/E of 13.74 and a 1‑year range of $20.00–$39.90.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC has received an average recommendation of "Hold" from the fourteen research firms that are currently covering the firm, Marketbeat reports. Eleven research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $35.3333.

OTEX has been the subject of several analyst reports. Royal Bank Of Canada dropped their price objective on Open Text from $33.00 to $30.00 and set a "sector perform" rating for the company in a report on Friday, February 6th. TD Securities raised Open Text to a "hold" rating in a report on Monday, February 2nd. Zacks Research cut Open Text from a "strong-buy" rating to a "hold" rating in a report on Monday, January 5th. Raymond James Financial dropped their price objective on Open Text from $48.00 to $42.00 and set an "outperform" rating for the company in a report on Friday, February 6th. Finally, Barclays set a $25.00 price objective on Open Text in a report on Monday.

Hedge Funds Weigh In On Open Text

Institutional investors have recently modified their holdings of the business. CIBC Private Wealth Group LLC acquired a new position in shares of Open Text during the 3rd quarter worth $33,000. WealthCollab LLC raised its holdings in shares of Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock worth $48,000 after buying an additional 464 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of Open Text by 5,096.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker's stock worth $52,000 after buying an additional 1,580 shares in the last quarter. Osaic Holdings Inc. raised its holdings in shares of Open Text by 108.8% during the 2nd quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker's stock worth $52,000 after buying an additional 937 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of Open Text by 39.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker's stock worth $59,000 after buying an additional 570 shares in the last quarter. Institutional investors and hedge funds own 70.37% of the company's stock.

Open Text Stock Performance

NASDAQ:OTEX opened at $23.36 on Tuesday. The stock has a market cap of $5.66 billion, a P/E ratio of 13.74 and a beta of 1.08. The stock has a 50 day simple moving average of $23.43 and a 200 day simple moving average of $29.98. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.57. Open Text has a 1-year low of $20.00 and a 1-year high of $39.90.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its quarterly earnings data on Thursday, February 5th. The software maker reported $1.13 earnings per share for the quarter, beating the consensus estimate of $1.04 by $0.09. The firm had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.29 billion. Open Text had a return on equity of 23.60% and a net margin of 8.42%.The company's quarterly revenue was down .6% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.11 EPS. Research analysts anticipate that Open Text will post 3.98 earnings per share for the current year.

Open Text Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Friday, March 6th were issued a dividend of $0.275 per share. The ex-dividend date of this dividend was Friday, March 6th. This represents a $1.10 dividend on an annualized basis and a dividend yield of 4.7%. Open Text's payout ratio is 64.71%.

About Open Text

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company's platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text's product suite includes content services, business process management, customer experience management, analytics and security products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.