Open Text Co. Announces Quarterly Dividend of $0.19 (NASDAQ:OTEX)

Open Text Co. (NASDAQ:OTEX - Get Free Report) TSE: OTC announced a quarterly dividend on Wednesday, July 31st, Zacks reports. Investors of record on Friday, August 30th will be given a dividend of 0.192 per share by the software maker on Friday, September 20th. This represents a $0.77 annualized dividend and a yield of 2.40%. The ex-dividend date of this dividend is Friday, August 30th.

Open Text has increased its dividend by an average of 10.9% annually over the last three years. Open Text has a dividend payout ratio of 29.1% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Open Text to earn $3.73 per share next year, which means the company should continue to be able to cover its $1.05 annual dividend with an expected future payout ratio of 28.2%.

Open Text Stock Performance

Shares of NASDAQ:OTEX traded down $0.61 during trading on Wednesday, hitting $32.01. 698,009 shares of the company traded hands, compared to its average volume of 669,028. The stock has a market capitalization of $8.64 billion, a price-to-earnings ratio of 51.63 and a beta of 1.12. Open Text has a one year low of $27.50 and a one year high of $45.47. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.51. The business's fifty day moving average is $30.85 and its 200-day moving average is $33.42.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its earnings results on Thursday, August 1st. The software maker reported $0.98 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.05. The firm had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.41 billion. Open Text had a return on equity of 25.00% and a net margin of 8.06%. The firm's revenue for the quarter was down 8.6% on a year-over-year basis. During the same period last year, the company earned $0.79 earnings per share. As a group, equities analysts predict that Open Text will post 3.18 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on OTEX shares. Barclays reduced their target price on shares of Open Text from $38.00 to $36.00 and set an "equal weight" rating for the company in a research note on Monday, August 5th. TD Securities reduced their price objective on Open Text from $54.00 to $40.00 and set a "buy" rating for the company in a research report on Friday, May 3rd. Jefferies Financial Group lowered their target price on Open Text from $42.00 to $35.00 and set a "buy" rating on the stock in a research report on Friday, August 2nd. BMO Capital Markets cut their target price on Open Text from $38.00 to $33.00 and set a "market perform" rating on the stock in a research note on Friday, August 2nd. Finally, StockNews.com raised Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, May 11th. Eight research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $38.60.

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.