Open Text Co. (NASDAQ:OTEX) Receives Consensus Rating of “Hold” from Analysts

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) have earned an average recommendation of “Hold” from the twelve research firms that are covering the firm, MarketBeat Ratings reports. Nine investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $35.18.

OTEX has been the topic of several recent research reports. UBS Group assumed coverage on shares of Open Text in a research report on Tuesday, December 17th. They set a “neutral” rating and a $32.00 target price on the stock. BMO Capital Markets cut their price target on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a report on Friday, November 1st. TD Securities decreased their price objective on Open Text from $38.00 to $35.00 and set a “buy” rating for the company in a report on Sunday, February 9th. Citigroup raised their target price on Open Text from $30.00 to $32.00 and gave the stock a “neutral” rating in a research report on Friday, February 7th. Finally, Royal Bank of Canada reduced their price target on Open Text from $33.00 to $31.00 and set a “sector perform” rating on the stock in a research report on Friday, February 7th.

Open Text Stock Down 1.3 %

Shares of OTEX opened at $27.48 on Thursday. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.87 and a current ratio of 0.87. Open Text has a 52 week low of $26.84 and a 52 week high of $40.55. The stock has a market capitalization of $7.25 billion, a price-to-earnings ratio of 11.17 and a beta of 1.12. The stock has a fifty day moving average of $28.46 and a 200-day moving average of $30.48.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its earnings results on Thursday, February 6th. The software maker reported $1.02 EPS for the quarter, beating the consensus estimate of $0.92 by $0.10. Open Text had a return on equity of 23.23% and a net margin of 12.21%. As a group, sell-side analysts anticipate that Open Text will post 3.45 earnings per share for the current fiscal year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 21st. Investors of record on Friday, March 7th will be paid a dividend of $0.2625 per share. The ex-dividend date of this dividend is Friday, March 7th. This represents a $1.05 annualized dividend and a yield of 3.82%. This is a boost from Open Text’s previous quarterly dividend of $0.26. Open Text’s dividend payout ratio (DPR) is currently 42.68%.

Hedge Funds Weigh In On Open Text

Several institutional investors have recently added to or reduced their stakes in OTEX. AustralianSuper Pty Ltd bought a new stake in shares of Open Text in the 3rd quarter valued at $8,011,000. The Manufacturers Life Insurance Company grew its holdings in Open Text by 1.1% in the third quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker’s stock worth $187,952,000 after purchasing an additional 63,620 shares during the period. Natixis Advisors LLC acquired a new stake in Open Text in the third quarter worth $1,467,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its stake in Open Text by 126.1% in the third quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 86,260 shares of the software maker’s stock valued at $2,871,000 after purchasing an additional 48,111 shares in the last quarter. Finally, Stifel Financial Corp acquired a new position in shares of Open Text during the third quarter valued at about $2,232,000. 70.37% of the stock is owned by institutional investors and hedge funds.

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.