Open Text Co. (NASDAQ:OTEX) Declares Quarterly Dividend of $0.26

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) declared a quarterly dividend on Friday, February 7th,Wall Street Journal reports. Shareholders of record on Friday, March 7th will be paid a dividend of 0.2625 per share by the software maker on Friday, March 21st. This represents a $1.05 annualized dividend and a yield of 3.76%. The ex-dividend date of this dividend is Friday, March 7th. This is a boost from Open Text’s previous quarterly dividend of $0.26.

Open Text has increased its dividend by an average of 6.7% per year over the last three years. Open Text has a payout ratio of 25.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Open Text to earn $3.74 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 28.1%.

Open Text Price Performance

Shares of OTEX traded down $1.57 during trading hours on Friday, reaching $27.96. 1,175,821 shares of the company’s stock traded hands, compared to its average volume of 611,235. The firm’s 50 day simple moving average is $28.90 and its 200-day simple moving average is $30.64. The stock has a market cap of $7.37 billion, a PE ratio of 16.20 and a beta of 1.12. Open Text has a 12 month low of $26.84 and a 12 month high of $42.17. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, February 6th. The software maker reported $1.02 earnings per share for the quarter, topping analysts’ consensus estimates of $0.92 by $0.10. Open Text had a return on equity of 24.34% and a net margin of 8.35%. Equities analysts expect that Open Text will post 3.37 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on OTEX. Scotiabank dropped their target price on Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research report on Friday, November 1st. TD Securities lowered their price objective on Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a research report on Monday. Royal Bank of Canada lowered their price objective on Open Text from $33.00 to $31.00 and set a “sector perform” rating for the company in a research report on Friday. Barclays lowered their price objective on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a research report on Friday, November 1st. Finally, Citigroup upped their target price on Open Text from $30.00 to $32.00 and gave the company a “neutral” rating in a report on Friday. Nine equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $35.27.

Open Text Company Profile

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.