Open Text Co. (NASDAQ:OTEX) Given Consensus Recommendation of “Hold” by Analysts

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has received a consensus recommendation of “Hold” from the twelve analysts that are presently covering the company, MarketBeat Ratings reports. Nine investment analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $35.18.

A number of research analysts have recently commented on OTEX shares. Scotiabank lowered their target price on Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research note on Friday, November 1st. Royal Bank of Canada lowered their price objective on Open Text from $33.00 to $31.00 and set a “sector perform” rating for the company in a research note on Friday, February 7th. TD Securities reduced their target price on Open Text from $38.00 to $35.00 and set a “buy” rating for the company in a report on Sunday, February 9th. Citigroup lifted their target price on Open Text from $30.00 to $32.00 and gave the stock a “neutral” rating in a report on Friday, February 7th. Finally, BMO Capital Markets reduced their target price on Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a report on Friday, November 1st.

Institutional Trading of Open Text

Large investors have recently modified their holdings of the company. Blue Trust Inc. grew its holdings in shares of Open Text by 435.7% in the third quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock worth $32,000 after acquiring an additional 793 shares during the period. IFP Advisors Inc grew its holdings in Open Text by 103.8% during the fourth quarter. IFP Advisors Inc now owns 1,011 shares of the software maker’s stock valued at $29,000 after purchasing an additional 515 shares during the period. Cromwell Holdings LLC grew its holdings in Open Text by 29.6% during the third quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock valued at $55,000 after purchasing an additional 380 shares during the period. Aquatic Capital Management LLC bought a new stake in Open Text during the fourth quarter valued at about $60,000. Finally, Generali Asset Management SPA SGR bought a new stake in Open Text during the fourth quarter valued at about $62,000. Institutional investors own 70.37% of the company’s stock.

Open Text Price Performance

Shares of OTEX stock opened at $26.55 on Thursday. The firm has a market cap of $7.01 billion, a P/E ratio of 10.79 and a beta of 1.12. Open Text has a fifty-two week low of $26.41 and a fifty-two week high of $40.55. The business’s 50 day moving average price is $28.27 and its 200-day moving average price is $30.42. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.87 and a current ratio of 0.87.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, February 6th. The software maker reported $1.02 earnings per share for the quarter, topping analysts’ consensus estimates of $0.92 by $0.10. Open Text had a return on equity of 23.23% and a net margin of 12.21%. On average, equities research analysts anticipate that Open Text will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 21st. Investors of record on Friday, March 7th will be issued a $0.2625 dividend. The ex-dividend date is Friday, March 7th. This represents a $1.05 annualized dividend and a dividend yield of 3.95%. This is a positive change from Open Text’s previous quarterly dividend of $0.26. Open Text’s payout ratio is presently 42.68%.

Open Text Company Profile

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.