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 rating of “Hold” from the twelve research firms that are currently covering the firm, MarketBeat reports. Eight investment analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $38.80.

A number of research firms have issued reports on OTEX. 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 research report on Friday, August 2nd. BMO Capital Markets decreased their target price 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. Citigroup raised their price target on shares of Open Text from $32.00 to $34.00 and gave the company a “neutral” rating in a report on Wednesday, September 25th. Jefferies Financial Group reduced their price target on shares of Open Text from $42.00 to $35.00 and set a “buy” rating on the stock in a research report on Friday, August 2nd. Finally, Barclays dropped their price objective on shares of Open Text from $38.00 to $36.00 and set an “equal weight” rating for the company in a research report on Monday, August 5th.

Institutional Trading of Open Text

A number of hedge funds and other institutional investors have recently modified their holdings of OTEX. FIL Ltd grew its stake in Open Text by 25.7% during the 4th quarter. FIL Ltd now owns 9,058,024 shares of the software maker’s stock valued at $380,696,000 after purchasing an additional 1,853,891 shares in the last quarter. Brandes Investment Partners LP boosted its stake in shares of Open Text by 236.8% during the 2nd quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock valued at $55,059,000 after buying an additional 1,290,011 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in shares of Open Text by 25.1% during the second quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock worth $167,277,000 after buying an additional 1,118,479 shares in the last quarter. Cooke & Bieler LP increased its stake in shares of Open Text by 18.6% in the second quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock worth $166,325,000 after buying an additional 867,978 shares during the last quarter. Finally, JARISLOWSKY FRASER Ltd raised its holdings in Open Text by 5.1% in the second quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock valued at $471,415,000 after acquiring an additional 767,822 shares in the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Trading Down 1.6 %

Shares of OTEX stock opened at $33.09 on Monday. The firm’s 50-day simple moving average is $31.59 and its 200-day simple moving average is $32.39. 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 has a 1-year low of $27.50 and a 1-year high of $45.47. The firm has a market cap of $8.93 billion, a P/E ratio of 53.37 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings results on Thursday, August 1st. The software maker reported $0.98 earnings per share for the quarter, beating analysts’ consensus estimates of $0.93 by $0.05. The company had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.41 billion. Open Text had a net margin of 8.06% and a return on equity of 25.00%. Open Text’s revenue for the quarter was down 8.6% on a year-over-year basis. During the same quarter last year, the business earned $0.79 EPS. As a group, equities analysts forecast that Open Text will post 3.23 EPS for the current year.

Open Text Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 20th. Shareholders of record on Friday, August 30th were given a $0.192 dividend. The ex-dividend date of this dividend was Friday, August 30th. This represents a $0.77 dividend on an annualized basis and a yield of 2.32%. Open Text’s payout ratio is currently 169.35%.

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.