Open Text Corporation (OTEX) – What Are Brokerages Saying About This Stock?

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) have earned a consensus recommendation of “Hold” from the thirteen analysts that are covering the company, MarketBeat Ratings reports. Ten investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $30.95.

A number of brokerages recently issued reports on OTEX. Scotia reduced their target price on Open Text from $40.00 to $33.00 and set a “sector outperform” rating for the company in a research note on Friday, August 7th. Citigroup boosted their price target on Open Text from $25.00 to $28.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Zacks Research upgraded Open Text from a “strong sell” rating to a “hold” rating in a research note on Monday, October 5th. Weiss Ratings raised Open Text from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday. Finally, Scotiabank reduced their price objective on Open Text from $40.00 to $33.00 and set a “sector outperform” rating for the company in a research note on Friday, August 7th.

Open Text Trading Down 1.3%

NASDAQ OTEX opened at $25.50 on Tuesday. The company has a fifty day simple moving average of $23.76 and a two-hundred day simple moving average of $23.24. The stock has a market cap of $6.17 billion, a P/E ratio of 9.88 and a beta of 1.01. Open Text has a 12-month low of $19.77 and a 12-month high of $39.81. 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 posted its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 EPS for the quarter, topping the consensus estimate of $1.02 by $0.21. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the previous year, the firm posted $0.97 earnings per share. The business’s revenue for the quarter was up 2.9% compared to the same quarter last year. On average, analysts forecast that Open Text will post 3.72 earnings per share for the current year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were given a $0.28 dividend. This is an increase from Open Text’s previous quarterly dividend of $0.2750. This represents a $1.12 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date was Friday, September 4th. Open Text’s payout ratio is currently 43.41%.

Hedge Funds Weigh In On Open Text

A number of institutional investors have recently bought and sold shares of the business. The Manufacturers Life Insurance Company acquired a new stake in Open Text during the 2nd quarter valued at approximately $266,599,000. Cibc World Market Inc. acquired a new stake in shares of Open Text in the second quarter worth $70,939,000. BlackRock Inc. acquired a new stake in shares of Open Text in the second quarter worth $46,144,000. Canada Pension Plan Investment Board purchased a new position in shares of Open Text during the second quarter worth $40,559,000. Finally, Legal & General Group Plc purchased a new position in shares of Open Text during the second quarter worth $31,319,000. 70.37% of the stock is owned by hedge funds and other institutional investors.

About Open Text

OpenText Corporation (NASDAQ: OTEX) is a Canadian enterprise software company that provides information management solutions for organizations worldwide. Its products help businesses create, capture, manage, secure, exchange and analyze content and data across digital operations.

The company’s portfolio includes enterprise content management, business process management, customer experience management, secure file transfer, cybersecurity, IT operations management, analytics and developer tools.