Open Text Co. (OTEX) to Issue Quarterly Dividend of $0.19 on September 20th

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) declared a quarterly dividend on Wednesday, July 31st, Zacks reports. Stockholders of record on Friday, August 30th will be paid a dividend of 0.192 per share by the software maker on Friday, September 20th. This represents a $0.77 annualized dividend and a dividend yield of 2.38%. The ex-dividend date is Friday, August 30th.

Open Text has increased its dividend payment by an average of 10.9% per year over the last three years. Open Text has a dividend payout ratio of 29.1% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Open Text to earn $3.73 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 28.2%.

Open Text Stock Down 1.1 %

Shares of OTEX traded down $0.37 during mid-day trading on Wednesday, hitting $32.25. 245,615 shares of the company’s stock were exchanged, compared to its average volume of 666,302. The company has a market cap of $8.70 billion, a PE ratio of 52.21 and a beta of 1.12. Open Text has a 52 week low of $27.50 and a 52 week high of $45.47. The company has a 50-day simple moving average of $30.78 and a 200 day simple moving average of $33.43. The company has a debt-to-equity ratio of 1.51, a current ratio of 0.81 and a quick ratio of 0.81.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, August 1st. The software maker reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.05. Open Text had a net margin of 8.06% and a return on equity of 25.00%. The business had revenue of $1.36 billion during the quarter, compared to analysts’ expectations of $1.41 billion. During the same period last year, the business earned $0.79 earnings per share. The firm’s revenue was down 8.6% on a year-over-year basis. On average, research analysts forecast that Open Text will post 3.18 earnings per share for the current fiscal year.

Analyst Ratings Changes

OTEX has been the subject of several analyst reports. Citigroup decreased their target price on shares of Open Text from $37.00 to $32.00 and set a “neutral” rating for the company in a research note on Wednesday, June 26th. CIBC decreased their target price on shares of Open Text from $36.00 to $33.00 and set a “neutral” rating for the company in a research note on Friday, July 19th. Raymond James decreased their target price on shares of Open Text from $55.00 to $48.00 and set an “outperform” rating for the company in a research note on Friday, May 3rd. BMO Capital Markets cut their price target on Open Text from $38.00 to $33.00 and set a “market perform” rating for the company in a report on Friday, August 2nd. Finally, National Bankshares downgraded Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price target for the company. in a report on Friday, August 2nd. Eight equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, Open Text has an average rating of “Hold” and an average price target of $38.60.

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.