Open Text Corporation (NASDAQ:OTEX) Increases Dividend to $0.28 Per Share

Key Points

• Open Text Corporation has announced a quarterly dividend increase to $0.28 per share, up from the previous $0.26, representing a 4.8% increase and a yield of 3.6%.
• The company reported earnings per share (EPS) of $0.97, exceeding estimates, with a net margin of 8.43% and revenue of $1.32 billion for the quarter.
• Despite positive earnings, multiple analysts have reduced their price targets for Open Text, with a consensus rating of "Hold" and an average target price of $32.00.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC announced a quarterly dividend on Monday, August 11th, Wall Street Journal reports. Shareholders of record on Friday, September 5th will be given a dividend of 0.275 per share by the software maker on Friday, September 19th. This represents a c) dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Friday, September 5th. This is a 4.8% increase from Open Text's previous quarterly dividend of $0.26.

Open Text has a dividend payout ratio of 25.2% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Open Text to earn $3.78 per share next year, which means the company should continue to be able to cover its $1.05 annual dividend with an expected future payout ratio of 27.8%.

Open Text Stock Performance

Shares of NASDAQ OTEX traded down $0.69 during mid-day trading on Monday, hitting $30.22. The company had a trading volume of 3,198,827 shares, compared to its average volume of 1,258,778. The company has a market capitalization of $7.69 billion, a price-to-earnings ratio of 18.32 and a beta of 1.12. Open Text has a 1 year low of $22.79 and a 1 year high of $34.20. The stock's 50-day moving average price is $28.95 and its 200-day moving average price is $27.60. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.61.

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

Wall Street Analysts Forecast Growth

OTEX has been the topic of a number of recent research reports. Jefferies Financial Group reaffirmed a "buy" rating on shares of Open Text in a report on Friday. Royal Bank Of Canada cut their price objective on Open Text from $31.00 to $30.00 and set a "sector perform" rating for the company in a research report on Tuesday, April 22nd. UBS Group cut their price objective on Open Text from $32.00 to $28.00 and set a "neutral" rating for the company in a research report on Friday, May 2nd. Scotiabank dropped their price target 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, National Bankshares dropped their price target on Open Text from $38.00 to $34.00 and set a "sector perform" rating for the company in a research report on Friday, April 25th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $32.00.

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.

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