Open Text Co. (NASDAQ:OTEX) Declares Dividend Increase - $0.26 Per Share

Open Text Co. (NASDAQ:OTEX - Get Free Report) TSE: OTC announced a quarterly dividend on Thursday, October 31st, Zacks reports. Shareholders of record on Friday, November 29th will be paid a dividend of 0.262 per share by the software maker on Friday, December 20th. This represents a $1.05 annualized dividend and a yield of 3.62%. The ex-dividend date of this dividend is Friday, November 29th. This is a boost from Open Text's previous quarterly dividend of $0.19.

Open Text has raised its dividend by an average of 10.9% per year over the last three years. Open Text has a payout ratio of 29.1% meaning its dividend is sufficiently covered by earnings. Analysts expect Open Text to earn $3.66 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 28.7%.

Open Text Price Performance

Shares of NASDAQ:OTEX traded down $1.02 during midday trading on Friday, reaching $28.98. 1,397,507 shares of the company's stock traded hands, compared to its average volume of 635,531. The company has a market cap of $7.70 billion, a P/E ratio of 16.94 and a beta of 1.12. The company has a fifty day simple moving average of $32.80 and a two-hundred day simple moving average of $31.62. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.81 and a current ratio of 0.81. Open Text has a 1 year low of $27.50 and a 1 year high of $45.47.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its quarterly earnings data on Thursday, August 1st. The software maker reported $0.98 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.05. Open Text had a net margin of 8.06% and a return on equity of 25.00%. The business had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.41 billion. During the same period last year, the firm posted $0.79 earnings per share. The company's revenue was down 8.6% compared to the same quarter last year. Equities analysts predict that Open Text will post 3.23 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the company. Jefferies Financial Group cut their price objective on Open Text from $42.00 to $35.00 and set a "buy" rating for the company in a research note on Friday, August 2nd. Royal Bank of Canada cut Open Text from an "outperform" rating to a "sector perform" rating and dropped their price target for the stock from $45.00 to $33.00 in a research report on Friday. National Bank Financial lowered Open Text from an "outperform" rating to a "sector perform" rating in a report on Friday, August 2nd. National Bankshares lowered shares of Open Text from an "outperform" rating to a "sector perform" rating and set a $38.00 target price for the company. in a report on Friday, August 2nd. Finally, TD Securities decreased their price target on shares of Open Text from $40.00 to $38.00 and set a "buy" rating on the stock in a research note on Friday. Eight research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat, Open Text presently has a consensus rating of "Hold" and a consensus target price of $35.90.

About Open Text

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.