Open Text Corporation (NASDAQ:OTEX) Receives $33.10 Consensus Price Target from Analysts

Key Points

• Open Text Corporation has received an average analyst recommendation of "Hold", with one sell, seven hold, and two buy recommendations.
• The company has recently declared an increase in its quarterly dividend from $0.26 to $0.275 per share, representing a 3.3% yield.
• Open Text reported a net margin of 8.43% and revenue of $1.32 billion for the last quarter, surpassing analysts' expectations.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC has received an average rating of "Hold" from the ten analysts that are currently covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and two have given a buy rating to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $33.10.

A number of research firms have recently weighed in on OTEX. Jefferies Financial Group downgraded 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 their price target on Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a research report on Tuesday, August 12th. Barclays reiterated a "positive" rating on shares of Open Text in a research report on Friday, August 8th. CIBC reiterated a "neutral" rating on shares of Open Text in a research report on Monday, August 11th. Finally, Wall Street Zen upgraded Open Text from a "hold" rating to a "buy" rating in a report on Saturday, August 9th.

Institutional Trading of Open Text

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new position in Open Text in the second quarter valued at approximately $98,882,000. Brandes Investment Partners LP raised its position 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 purchasing an additional 2,506,058 shares during the period. Value Partners Investments Inc. raised its position in shares of Open Text by 1,162.1% during the first quarter. Value Partners Investments Inc. now owns 2,333,539 shares of the software maker's stock worth $58,955,000 after purchasing an additional 2,148,639 shares during the period. JARISLOWSKY FRASER Ltd raised its position in shares of Open Text by 11.8% during the fourth quarter. JARISLOWSKY FRASER Ltd now owns 18,547,256 shares of the software maker's stock worth $522,879,000 after purchasing an additional 1,957,695 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its position 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 purchasing an additional 810,352 shares during the period. 70.37% of the stock is currently owned by institutional investors.

Open Text Stock Up 1.2%

Shares of NASDAQ:OTEX traded up $0.43 during midday trading on Monday, hitting $35.68. The stock had a trading volume of 1,865,015 shares, compared to its average volume of 1,674,177. Open Text has a 12 month low of $22.79 and a 12 month high of $35.96. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.61. The business's 50-day simple moving average is $30.95 and its 200-day simple moving average is $28.32. The company has a market cap of $9.07 billion, a P/E ratio of 21.62 and a beta of 1.16.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its quarterly earnings data on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, topping 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 business posted $0.98 earnings per share. The company's revenue for the quarter 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 fiscal year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, September 5th will be issued a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 3.1%. This is an increase from Open Text's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. Open Text's dividend payout ratio (DPR) is presently 66.67%.

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.