Open Text Corporation (NASDAQ:OTEX) Announces Quarterly Dividend of $0.28

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) declared a quarterly dividend on Tuesday, November 3rd. Stockholders of record on Friday, December 4th will be paid a dividend of $0.28 per share by the software maker on Friday, December 18th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date of this dividend is Friday, December 4th.

Open Text has a payout ratio of 26.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Open Text to earn $3.86 per share next year, which means the company should continue to be able to cover its $1.12 annual dividend with an expected future payout ratio of 29.0%.

Open Text Trading Down 1.8%

NASDAQ OTEX traded down $0.47 during trading hours on Thursday, hitting $26.12. 1,836,419 shares of the company’s stock were exchanged, compared to its average volume of 1,936,618. The stock has a 50-day simple moving average of $24.41 and a 200 day simple moving average of $23.88. Open Text has a 1-year low of $19.77 and a 1-year high of $38.29. The firm has a market cap of $6.31 billion, a price-to-earnings ratio of 10.12 and a beta of 0.98. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.43.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, November 5th. The software maker reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.94 by $0.11. Open Text had a return on equity of 25.76% and a net margin of 12.26%. The business’s revenue was down 4.0% compared to the same quarter last year. During the same period last year, the firm earned $1.05 EPS. On average, equities analysts forecast that Open Text will post 3.72 EPS for the current fiscal year.

Analysts Set New Price Targets

OTEX has been the topic of several research analyst reports. Scotiabank cut their target price on shares of Open Text from $40.00 to $33.00 and set a “sector outperform” rating on the stock in a research note on Friday, August 7th. UBS Group lifted their price target on shares of Open Text from $25.00 to $27.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Zacks Research raised shares of Open Text from a “strong sell” rating to a “hold” rating in a research report on Monday, October 5th. Wall Street Zen upgraded Open Text from a “hold” rating to a “buy” rating in a research note on Saturday, September 5th. Finally, Raymond James Financial downgraded Open Text from an “outperform” rating to a “market perform” rating and reduced their target price for the company from $35.00 to $29.50 in a research note on Thursday, August 6th. Three research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $30.95.

About Open Text

OpenText Corporation is a Canadian enterprise software company that develops solutions for managing, securing and exchanging business information. Its offerings help organizations organize content, automate business processes, connect with customers and partners, and manage information across cloud, on-premises and hybrid environments.

The company’s portfolio includes enterprise content management, business network and integration services, customer experience tools, cybersecurity and information governance solutions, and software for managing enterprise applications and information technology operations.