Open Text Co. (NASDAQ:OTEX) Raises Dividend to $0.26 Per Share

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) announced a quarterly dividend on Tuesday, October 29th,Zacks Dividends reports. Stockholders of record on Friday, November 29th will be given a dividend of 0.262 per share by the software maker on Friday, December 20th. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.43%. The ex-dividend date is Friday, November 29th. This is a positive change from Open Text’s previous quarterly dividend of $0.19.

Open Text has raised its dividend payment by an average of 10.9% per year over the last three years. Open Text has a dividend payout ratio of 28.8% meaning its dividend is sufficiently covered by earnings. 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 Trading Up 1.9 %

NASDAQ OTEX opened at $30.59 on Thursday. The firm’s 50 day moving average price is $31.79 and its two-hundred day moving average price is $31.02. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79. Open Text has a twelve month low of $27.50 and a twelve month high of $45.47. The stock has a market cap of $8.13 billion, a price-to-earnings ratio of 17.68 and a beta of 1.13.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, beating analysts’ consensus estimates of $0.80 by $0.13. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The business had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter in the previous year, the company posted $0.90 earnings per share. Open Text’s revenue for the quarter was down 11.0% compared to the same quarter last year. Equities analysts anticipate that Open Text will post 3.37 EPS for the current year.

Wall Street Analysts Forecast Growth

Several analysts recently commented on OTEX shares. Citigroup decreased their price target on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a report on Friday, November 1st. Scotiabank lowered their price target on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a report on Friday, November 1st. Barclays cut their price objective on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a report on Friday, November 1st. National Bank Financial lowered Open Text from an “outperform” rating to a “sector perform” rating in a report on Friday, August 2nd. Finally, TD Securities dropped their price objective on Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a report on Friday, November 1st. Eight research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $35.90.

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.