Open Text Corporation (NASDAQ:OTEX) Receives Consensus Recommendation of "Hold" 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.

Shares of Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC have earned an average recommendation of "Hold" from the ten analysts that are covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, seven have assigned a hold recommendation and two have given a buy recommendation to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $33.10.

OTEX has been the topic of a number of recent research reports. Royal Bank Of Canada increased their target price on Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a research note on Tuesday, September 2nd. Barclays reaffirmed a "positive" rating on shares of Open Text in a report on Friday, August 8th. Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Jefferies Financial Group downgraded Open Text from a "buy" rating to a "hold" rating and set a $33.00 price target on the stock. in a report on Tuesday, August 12th. Finally, CIBC reaffirmed a "neutral" rating on shares of Open Text in a report on Monday, August 11th.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Sagard Holdings Management Inc. bought a new position in Open Text in the second quarter valued at about $30,000. Versant Capital Management Inc bought a new position in Open Text in the first quarter valued at about $26,000. MAI Capital Management lifted its holdings in 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 during the period. Cromwell Holdings LLC lifted its holdings in 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 during the period. Finally, WealthCollab LLC lifted its holdings in Open Text by 39.5% in the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock valued at $48,000 after acquiring an additional 464 shares during the period. 70.37% of the stock is owned by institutional investors.

Open Text Trading Down 0.7%

NASDAQ OTEX opened at $33.23 on Monday. Open Text has a 12 month low of $22.79 and a 12 month high of $34.20. The stock has a market cap of $8.45 billion, a P/E ratio of 20.14 and a beta of 1.15. The stock's fifty day moving average price is $30.43 and its 200-day moving average price is $28.06. 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 released its earnings results 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 return on equity of 22.52% and a net margin of 8.43%.The firm had revenue of $1.32 billion for the quarter, compared to analysts' expectations of $1.30 billion. During the same period in the prior year, the firm posted $0.98 earnings per share. The company's quarterly revenue was down 3.8% on a year-over-year basis. As a group, equities analysts forecast that Open Text will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

The firm 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. The ex-dividend date of this dividend is Friday, September 5th. This is an increase 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 3.3%. Open Text's dividend payout ratio is currently 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.

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