Open Text Co. (NASDAQ:OTEX) Receives Consensus Recommendation of "Hold" from Brokerages

Open Text Co. (NASDAQ:OTEX - Get Free Report) TSE: OTC has been given an average rating of "Hold" by the twelve brokerages that are currently covering the firm, Marketbeat reports. Nine investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $35.18.

Several equities analysts have weighed in on the company. Citigroup raised their price target on Open Text from $30.00 to $32.00 and gave the stock a "neutral" rating in a research report on Friday, February 7th. BMO Capital Markets cut 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 research note on Friday, November 1st. UBS Group began coverage on shares of Open Text in a report on Tuesday, December 17th. They set a "neutral" rating and a $32.00 price target for the company. Scotiabank reduced their price objective on shares of Open Text from $40.00 to $35.00 and set a "sector perform" rating on the stock in a research note on Friday, November 1st. Finally, Barclays lifted their target price on shares of Open Text from $34.00 to $36.00 and gave the stock an "equal weight" rating in a research note on Friday, February 7th.

Open Text Price Performance

Shares of OTEX stock traded down $0.63 during mid-day trading on Thursday, reaching $26.83. The stock had a trading volume of 792,567 shares, compared to its average volume of 775,416. Open Text has a 12-month low of $26.81 and a 12-month high of $40.55. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.50. The business has a 50-day simple moving average of $28.42 and a 200 day simple moving average of $30.46. The company has a market cap of $7.08 billion, a P/E ratio of 10.91 and a beta of 1.12.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its quarterly earnings results on Thursday, February 6th. The software maker reported $1.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.10. Open Text had a net margin of 12.21% and a return on equity of 23.23%. On average, sell-side analysts anticipate that Open Text will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 21st. Shareholders of record on Friday, March 7th will be given a dividend of $0.2625 per share. This represents a $1.05 dividend on an annualized basis and a yield of 3.91%. The ex-dividend date is Friday, March 7th. This is an increase from Open Text's previous quarterly dividend of $0.26. Open Text's payout ratio is 42.68%.

Institutional Trading of Open Text

A number of institutional investors have recently added to or reduced their stakes in OTEX. Norges Bank purchased a new stake in shares of Open Text in the fourth quarter worth about $93,216,000. Arrowstreet Capital Limited Partnership increased its stake in shares of Open Text by 75.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 5,994,675 shares of the software maker's stock worth $169,555,000 after buying an additional 2,586,549 shares during the last quarter. JARISLOWSKY FRASER Ltd raised its stake in shares of Open Text by 11.8% in the 4th quarter. JARISLOWSKY FRASER Ltd now owns 18,547,256 shares of the software maker's stock valued at $522,879,000 after purchasing an additional 1,957,695 shares in the last quarter. Criteria Caixa S.A.U. acquired a new stake in Open Text during the fourth quarter valued at approximately $32,890,000. Finally, Brandes Investment Partners LP lifted its holdings in Open Text by 29.2% during the 4th quarter. Brandes Investment Partners LP now owns 4,504,139 shares of the software maker's stock worth $127,557,000 after buying an additional 1,017,065 shares during the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

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.