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 Wednesday, February 5th,Wall Street Journal reports. Investors of record on Friday, March 7th will be given a dividend of 0.2625 per share by the software maker on Friday, March 21st. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.66%. The ex-dividend date of this dividend is Friday, March 7th. This is a boost from Open Text's previous quarterly dividend of $0.26.

Open Text has raised its dividend payment by an average of 6.7% per year over the last three years. Open Text has a payout ratio of 25.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Open Text to earn $3.74 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 28.1%.

Open Text Trading Down 0.8 %

Shares of OTEX traded down $0.23 on Tuesday, reaching $28.66. 894,252 shares of the company's stock were exchanged, compared to its average volume of 661,250. The stock has a market capitalization of $7.56 billion, a P/E ratio of 11.65 and a beta of 1.12. The business has a 50 day moving average price of $28.82 and a two-hundred day moving average price of $30.60. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. Open Text has a 12 month low of $26.84 and a 12 month high of $41.96.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings data on Thursday, February 6th. The software maker reported $1.02 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.92 by $0.10. Open Text had a net margin of 12.21% and a return on equity of 23.33%. Research analysts anticipate that Open Text will post 3.37 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. TD Securities reduced their price target on shares of Open Text from $38.00 to $35.00 and set a "buy" rating for the company in a report on Sunday. Royal Bank of Canada reduced their price target on shares of Open Text from $33.00 to $31.00 and set a "sector perform" rating for the company in a report on Friday. Barclays upped their price target on shares of Open Text from $34.00 to $36.00 and gave the company an "equal weight" rating in a report on Friday. BMO Capital Markets reduced their target price on shares of Open Text from $33.00 to $32.00 and set a "market perform" rating for the company in a report on Friday, November 1st. Finally, Scotiabank reduced their target price on shares of Open Text from $40.00 to $35.00 and set a "sector perform" rating for the company in a report on Friday, November 1st. Nine research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $35.18.

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.