Open Text Corporation (NASDAQ:OTEX) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Open Text Corporation (NASDAQ:OTEX) has a consensus rating of "Hold" from eleven analysts, with an average 1-year price target of $36.55.
• The company recently reported earnings of $0.97 per share, exceeding estimates, while revenue was $1.32 billion, albeit a 3.8% decrease year over year.
• Open Text has increased its quarterly dividend to $0.275, reflecting a positive trend and representing an annualized yield of 2.9%.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC has received a consensus recommendation of "Hold" from the eleven analysts that are presently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, five have given a hold recommendation and five have issued a buy recommendation on the company. The average 1 year price target among brokers that have covered the stock in the last year is $36.5455.

OTEX has been the subject of a number of research reports. Jefferies Financial Group cut shares of Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price for the company. in a report on Tuesday, August 12th. Scotiabank raised shares of Open Text from a "sector perform" rating to an "outperform" rating and upped their target price for the company from $35.00 to $50.00 in a report on Wednesday, September 24th. Royal Bank Of Canada upped their target price on shares of Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a report on Tuesday, September 2nd. Wall Street Zen raised shares of Open Text from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Finally, National Bank Financial raised shares of Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 target price for the company in a report on Monday, September 15th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in shares of Open Text by 6.1% during the first quarter. Vanguard Group Inc. now owns 11,151,279 shares of the software maker's stock worth $281,447,000 after acquiring an additional 639,514 shares during the period. Brandes Investment Partners LP increased its stake in shares of Open Text by 42.7% during the second quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker's stock worth $244,356,000 after acquiring an additional 2,506,058 shares during the period. First Trust Advisors LP increased its stake in shares of Open Text by 1.5% during the second quarter. First Trust Advisors LP now owns 8,262,084 shares of the software maker's stock worth $241,328,000 after acquiring an additional 119,163 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in shares of Open Text by 11.7% during the second quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker's stock worth $225,898,000 after acquiring an additional 810,352 shares during the period. Finally, Mackenzie Financial Corp increased its stake in shares of Open Text by 9.2% during the first quarter. Mackenzie Financial Corp now owns 5,876,003 shares of the software maker's stock worth $148,299,000 after acquiring an additional 492,897 shares during the period. 70.37% of the stock is currently owned by institutional investors and hedge funds.

Open Text Price Performance

Shares of OTEX opened at $37.66 on Friday. Open Text has a 1-year low of $22.79 and a 1-year high of $39.04. The stock has a market cap of $9.52 billion, a PE ratio of 22.82 and a beta of 1.17. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.80 and a quick ratio of 0.80. The firm has a fifty day moving average price of $33.27 and a 200 day moving average price of $29.43.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its quarterly earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.11. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The firm had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.30 billion. During the same period in the previous year, the company earned $0.98 earnings per share. Open Text's quarterly revenue was down 3.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that Open Text will post 3.45 EPS for the current year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 19th. Stockholders of record on Friday, September 5th were issued a $0.275 dividend. The ex-dividend date of this dividend was Friday, September 5th. This is a positive change from Open Text's previous quarterly dividend of $0.26. This represents a $1.10 dividend on an annualized basis and a dividend yield of 2.9%. Open Text's dividend payout ratio is currently 66.67%.

Open Text Company Profile

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.

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