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

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) has been given a consensus recommendation of “Hold” by the thirteen research firms that are covering the stock, MarketBeat Ratings reports. Ten research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $30.95.

Several analysts have recently commented on OTEX shares. Scotia decreased their price target 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. Zacks Research upgraded shares of Open Text from a “strong sell” rating to a “hold” rating in a research report on Monday, October 5th. Weiss Ratings raised Open Text from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, October 14th. Wall Street Zen raised Open Text from a “hold” rating to a “buy” rating in a report on Saturday, September 5th. Finally, UBS Group increased their price objective on Open Text from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Friday, August 7th.

Hedge Funds Weigh In On Open Text

Hedge funds have recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company acquired a new stake in Open Text during the 2nd quarter worth $266,599,000. Cibc World Market Inc. bought a new stake in shares of Open Text during the 2nd quarter valued at $70,939,000. BlackRock Inc. acquired a new position in shares of Open Text in the 2nd quarter valued at $46,144,000. Canada Pension Plan Investment Board acquired a new position in shares of Open Text in the 2nd quarter valued at $40,559,000. Finally, Legal & General Group Plc acquired a new position in shares of Open Text in the 2nd quarter valued at $31,319,000. Institutional investors own 70.37% of the company’s stock.

Open Text Stock Up 0.9%

Shares of NASDAQ OTEX opened at $25.72 on Tuesday. The firm’s 50-day simple moving average is $23.78 and its 200 day simple moving average is $23.28. The company has a market cap of $6.22 billion, a price-to-earnings ratio of 9.97 and a beta of 1.01. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.43. Open Text has a 12-month low of $19.77 and a 12-month high of $39.81.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 EPS for the quarter, topping analysts’ consensus estimates of $1.02 by $0.21. The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.29 billion. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The company’s revenue was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.97 EPS. On average, research analysts expect that Open Text will post 3.72 earnings per share for the current fiscal year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, September 4th were given a dividend of $0.28 per share. The ex-dividend date was Friday, September 4th. 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 dividend yield of 4.4%. Open Text’s dividend payout ratio is presently 43.41%.

Open Text Company Profile

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.