Brokerages Set Open Text Co. (NASDAQ:OTEX) PT at $32.30

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) have been assigned a consensus recommendation of “Hold” from the eleven ratings firms that are currently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, eight have given a hold recommendation and two have issued a buy recommendation on the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $32.30.

A number of equities analysts have recently commented on OTEX shares. Royal Bank of Canada lowered their price objective on Open Text from $31.00 to $30.00 and set a “sector perform” rating for the company in a research report on Tuesday, April 22nd. UBS Group lowered their price objective on Open Text from $32.00 to $28.00 and set a “neutral” rating for the company in a research report on Friday, May 2nd. Barclays lowered their price objective on Open Text from $36.00 to $29.00 and set an “equal weight” rating for the company in a research report on Monday, April 21st. BMO Capital Markets lowered their price objective on Open Text from $30.00 to $28.00 and set a “market perform” rating for the company in a research report on Friday, May 2nd. Finally, National Bankshares lowered their price target on Open Text from $38.00 to $34.00 and set a “sector perform” rating for the company in a report on Friday, April 25th.

Open Text Stock Down 0.8%

Shares of OTEX opened at $28.08 on Friday. The firm has a market cap of $7.27 billion, a P/E ratio of 11.41 and a beta of 1.15. Open Text has a 12-month low of $22.79 and a 12-month high of $34.20. The company’s 50-day moving average price is $26.46 and its 200 day moving average price is $27.58. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.50.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Wednesday, April 30th. The software maker reported $0.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.81 by $0.01. The company had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.28 billion. Open Text had a net margin of 12.21% and a return on equity of 23.23%. The business’s revenue for the quarter was down 13.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.94 earnings per share. On average, sell-side analysts forecast that Open Text will post 3.45 earnings per share for the current year.

Open Text Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 20th. Stockholders of record on Friday, June 6th will be paid a $0.2625 dividend. This represents a $1.05 annualized dividend and a dividend yield of 3.74%. The ex-dividend date of this dividend is Friday, June 6th. Open Text’s dividend payout ratio is currently 42.86%.

Hedge Funds Weigh In On Open Text

Hedge funds and other institutional investors have recently modified their holdings of the company. Norges Bank purchased a new stake in shares of Open Text during the 4th quarter valued at about $93,216,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Open Text by 75.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 5,994,675 shares of the software maker’s stock valued at $169,555,000 after buying an additional 2,586,549 shares during the period. Value Partners Investments Inc. raised its holdings in shares of Open Text by 1,162.1% during the 1st quarter. Value Partners Investments Inc. now owns 2,333,539 shares of the software maker’s stock valued at $58,955,000 after buying an additional 2,148,639 shares during the period. JARISLOWSKY FRASER Ltd raised its holdings in shares of Open Text by 11.8% during the 4th quarter. JARISLOWSKY FRASER Ltd now owns 18,547,256 shares of the software maker’s stock valued at $522,879,000 after buying an additional 1,957,695 shares during the period. Finally, Criteria Caixa S.A.U. purchased a new stake in shares of Open Text during the 4th quarter valued at about $32,890,000. 70.37% of the stock is owned by institutional investors and hedge funds.

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.