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

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC has been assigned a consensus rating of "Hold" from the eleven ratings firms that are presently covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating on the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $32.30.

OTEX has been the subject of a number of recent analyst reports. National Bankshares lowered their price objective on shares of 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. Barclays lowered their price target on Open Text from $36.00 to $29.00 and set an "equal weight" rating for the company in a report on Monday, April 21st. CIBC cut their price objective on Open Text from $33.00 to $31.00 and set a "neutral" rating on the stock in a report on Friday, May 2nd. Citigroup boosted their price objective on Open Text from $29.00 to $43.00 and gave the company a "negative" rating in a research report on Friday, May 2nd. Finally, Royal Bank Of Canada dropped their target price on shares of Open Text from $31.00 to $30.00 and set a "sector perform" rating on the stock in a report on Tuesday, April 22nd.

Open Text Trading Down 0.7%

Shares of Open Text stock traded down $0.19 during trading on Wednesday, hitting $28.68. 1,349,619 shares of the company were exchanged, compared to its average volume of 938,513. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.86 and a quick ratio of 0.86. The firm has a market capitalization of $7.36 billion, a P/E ratio of 11.71 and a beta of 1.13. The firm's fifty day moving average price is $27.76 and its 200 day moving average price is $27.37. 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 data on Wednesday, April 30th. The software maker reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.81 by $0.01. Open Text had a net margin of 12.55% and a return on equity of 22.49%. The business had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same quarter last year, the firm earned $0.94 EPS. Open Text's quarterly revenue was down 13.3% compared to the same quarter last year. As a group, sell-side analysts expect that Open Text will post 3.45 earnings per share for the current fiscal year.

Open Text Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 20th. Stockholders of record on Friday, June 6th were issued a $0.2625 dividend. The ex-dividend date of this dividend was Friday, June 6th. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.66%. Open Text's dividend payout ratio (DPR) is presently 42.86%.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in OTEX. Blue Trust Inc. lifted its position in Open Text by 40.8% during the 4th quarter. Blue Trust Inc. now owns 1,373 shares of the software maker's stock worth $39,000 after buying an additional 398 shares in the last quarter. Allworth Financial LP increased its position in shares of Open Text by 20.7% in the fourth quarter. Allworth Financial LP now owns 2,564 shares of the software maker's stock valued at $73,000 after acquiring an additional 439 shares during the last quarter. Sanctuary Advisors LLC bought a new stake in Open Text during the fourth quarter worth about $632,000. IFP Advisors Inc boosted its position in Open Text by 103.8% during the fourth quarter. IFP Advisors Inc now owns 1,011 shares of the software maker's stock valued at $29,000 after purchasing an additional 515 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its position in Open Text by 2.2% during the fourth quarter. Bank of New York Mellon Corp now owns 352,405 shares of the software maker's stock valued at $9,980,000 after purchasing an additional 7,728 shares during the last quarter. Institutional investors and hedge funds own 70.37% of the company's stock.

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.