Open Text Corporation (NASDAQ:OTEX) Receives Average Rating of "Hold" from Analysts

Key Points

• Open Text Corporation has received an average analyst rating of "Hold," with one sell, seven hold, and two buy recommendations.
• The company recently increased its quarterly dividend to $0.275 per share, reflecting a 3.6% yield.
• Open Text reported earnings per share of $0.97, surpassing estimates, although revenue declined 3.8% year-over-year.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC has received an average recommendation of "Hold" from the ten research firms that are presently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, seven have given a hold recommendation and two have issued a buy recommendation on the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $32.60.

Several research analysts have weighed in on the company. Scotiabank lifted their target price on Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a research note on Tuesday. Wall Street Zen upgraded Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Royal Bank Of Canada decreased their price target on Open Text from $31.00 to $30.00 and set a "sector perform" rating on the stock in a research note on Tuesday, April 22nd. Barclays restated a "positive" rating on shares of Open Text in a research note on Friday, August 8th. Finally, UBS Group decreased their price target on Open Text from $32.00 to $28.00 and set a "neutral" rating on the stock in a research note on Friday, May 2nd.

Institutional Trading of Open Text

Institutional investors have recently bought and sold shares of the company. Versant Capital Management Inc purchased a new stake in Open Text during the first quarter worth $26,000. MAI Capital Management lifted its position in shares of Open Text by 58.7% in the second quarter. MAI Capital Management now owns 1,595 shares of the software maker's stock valued at $47,000 after acquiring an additional 590 shares in the last quarter. Cromwell Holdings LLC lifted its position in shares of Open Text by 27.4% in the second quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker's stock valued at $48,000 after acquiring an additional 352 shares in the last quarter. Parallel Advisors LLC lifted its position in shares of Open Text by 219.3% in the first quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock valued at $49,000 after acquiring an additional 1,331 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Open Text by 39.7% in the second quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker's stock valued at $59,000 after acquiring an additional 570 shares in the last quarter. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Open Text Trading Up 4.6%

Shares of OTEX stock opened at $30.86 on Thursday. The business's 50 day moving average is $29.07 and its two-hundred day moving average is $27.64. Open Text has a twelve month low of $22.79 and a twelve month high of $34.20. The company has a market capitalization of $7.85 billion, a P/E ratio of 18.70 and a beta of 1.12. 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 announced its earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share for the quarter, beating 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 company had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same period last year, the business posted $0.98 EPS. The company's revenue was down 3.8% on a year-over-year basis. Equities analysts forecast that Open Text will post 3.45 EPS for the current year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, September 5th will be given a dividend of $0.275 per share. The ex-dividend date is 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 yield of 3.6%. Open Text's dividend payout ratio (DPR) is presently 63.64%.

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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