Open Text Corporation (NASDAQ:OTEX) Receives Average Rating of “Hold” from Brokerages

Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) has been assigned a consensus rating of “Hold” from the fourteen research firms that are presently covering the firm, Marketbeat.com reports. Eleven analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $35.75.

Several analysts have issued reports on the company. Raymond James Financial cut their price objective on Open Text from $48.00 to $42.00 and set an “outperform” rating on the stock in a research note on Friday, February 6th. Citigroup cut their price target on Open Text from $36.00 to $26.00 and set a “neutral” rating on the stock in a report on Friday, February 6th. Zacks Research lowered shares of Open Text from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Canadian Imperial Bank of Commerce lowered their target price on Open Text from $40.00 to $37.00 and set a “neutral” rating on the stock in a report on Friday, January 16th. Finally, Barclays reduced their price objective on Open Text from $39.00 to $30.00 and set an “equal weight” rating for the company in a research note on Friday, February 6th.

Open Text Stock Performance

Shares of OTEX stock opened at $24.77 on Monday. Open Text has a 12 month low of $22.44 and a 12 month high of $39.90. The company’s fifty day moving average price is $28.45 and its two-hundred day moving average price is $32.94. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.94 and a quick ratio of 0.94. The firm has a market capitalization of $6.21 billion, a P/E ratio of 14.57 and a beta of 1.08.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, February 5th. The software maker reported $1.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.04 by $0.09. The company had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.29 billion. Open Text had a return on equity of 23.60% and a net margin of 8.42%.Open Text’s quarterly revenue was down .6% on a year-over-year basis. During the same period in the prior year, the company posted $1.11 EPS. On average, research analysts anticipate that Open Text will post 3.45 earnings per share for the current fiscal year.

Open Text Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, March 6th will be given a dividend of $0.275 per share. The ex-dividend date is Friday, March 6th. This represents a $1.10 dividend on an annualized basis and a yield of 4.4%. Open Text’s dividend payout ratio (DPR) is presently 64.71%.

Institutional Trading of Open Text

Several hedge funds and other institutional investors have recently modified their holdings of the company. JARISLOWSKY FRASER Ltd raised its stake in shares of Open Text by 0.6% during the 3rd quarter. JARISLOWSKY FRASER Ltd now owns 21,150,154 shares of the software maker’s stock worth $790,736,000 after purchasing an additional 117,436 shares in the last quarter. FIL Ltd lifted its position in Open Text by 5.7% during the 4th quarter. FIL Ltd now owns 12,155,000 shares of the software maker’s stock worth $395,853,000 after acquiring an additional 655,000 shares during the last quarter. Vanguard Group Inc. grew its holdings in Open Text by 2.0% in the 3rd quarter. Vanguard Group Inc. now owns 11,689,086 shares of the software maker’s stock valued at $436,926,000 after buying an additional 229,758 shares during the last quarter. First Trust Advisors LP increased its position in Open Text by 27.3% during the fourth quarter. First Trust Advisors LP now owns 11,493,714 shares of the software maker’s stock worth $374,394,000 after acquiring an additional 2,466,264 shares during the period. Finally, The Manufacturers Life Insurance Company raised its position in shares of Open Text by 11.7% during the fourth quarter. The Manufacturers Life Insurance Company now owns 10,734,420 shares of the software maker’s stock valued at $349,978,000 after buying an additional 1,122,320 shares during the last quarter. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Open Text Company Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.