Open Text Corporation (NASDAQ:OTEX) Given Average Rating of “Hold” by Brokerages

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) has received an average rating of “Hold” from the fourteen research firms that are covering the firm, Marketbeat Ratings reports. Ten analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $33.6667.

OTEX has been the topic of a number of research reports. Raymond James Financial reduced their target price on shares of Open Text from $42.00 to $35.00 and set an “outperform” rating on the stock in a report on Friday, May 8th. Wall Street Zen lowered Open Text from a “strong-buy” rating to a “buy” rating in a research report on Sunday. Barclays boosted their target price on Open Text from $25.00 to $27.00 and gave the stock an “equal weight” rating in a research note on Monday, May 11th. UBS Group set a $25.00 price target on Open Text in a report on Friday, May 8th. Finally, Royal Bank Of Canada reduced their price target on Open Text from $30.00 to $27.00 and set a “sector perform” rating on the stock in a research report on Friday, May 8th.

Open Text Trading Up 0.2%

Open Text stock traded up $0.04 during midday trading on Friday, reaching $23.01. 1,210,004 shares of the stock traded hands, compared to its average volume of 1,857,370. The firm has a market cap of $5.58 billion, a PE ratio of 11.22 and a beta of 1.04. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.56. The company has a 50-day simple moving average of $22.76 and a two-hundred day simple moving average of $24.81. Open Text has a 12-month low of $19.77 and a 12-month high of $39.90.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, May 7th. The software maker reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.94 by $0.07. The business had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.26 billion. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The business’s quarterly revenue was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.82 earnings per share. Research analysts expect that Open Text will post 4.05 earnings per share for the current fiscal year.

Open Text Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were issued a $0.275 dividend. The ex-dividend date of this dividend was Friday, June 5th. This represents a $1.10 annualized dividend and a yield of 4.8%. Open Text’s dividend payout ratio (DPR) is 53.66%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. CIBC Private Wealth Group LLC acquired a new stake in shares of Open Text in the 3rd quarter valued at $33,000. WealthCollab LLC increased its holdings in Open Text by 39.5% in the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock valued at $48,000 after buying an additional 464 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in Open Text by 5,096.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker’s stock valued at $52,000 after buying an additional 1,580 shares in the last quarter. Osaic Holdings Inc. raised its stake in Open Text by 108.8% in the second quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker’s stock valued at $52,000 after buying an additional 937 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in Open Text by 39.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock worth $59,000 after buying an additional 570 shares during the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

About Open Text

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.