Open Text Corporation (NASDAQ:OTEX) Given Average Rating of “Hold” by Brokerages

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) have received a consensus rating of “Hold” from the fourteen research firms that are presently covering the company, MarketBeat.com reports. Ten investment analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $33.6667.

A number of equities research analysts recently commented on OTEX shares. Scotiabank decreased their target price on Open Text from $50.00 to $40.00 and set a “sector outperform” rating for the company in a report on Friday, May 8th. Raymond James Financial decreased their price target on Open Text from $42.00 to $35.00 and set an “outperform” rating for the company in a report on Friday, May 8th. Citigroup decreased their price target on Open Text from $26.00 to $25.00 and set a “neutral” rating for the company in a report on Friday, May 8th. Scotia decreased their price target on Open Text from $50.00 to $40.00 and set a “sector outperform” rating for the company in a report on Friday, May 8th. Finally, Wall Street Zen raised Open Text from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 9th.

Open Text Trading Down 1.6%

Open Text stock opened at $22.16 on Wednesday. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.56. Open Text has a 52 week low of $20.00 and a 52 week high of $39.90. The company has a market capitalization of $5.38 billion, a price-to-earnings ratio of 10.81 and a beta of 1.05. The stock has a 50-day moving average price of $22.96 and a 200 day moving average price of $26.60.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.07. Open Text had a return on equity of 24.77% and a net margin of 9.91%.The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the previous year, the company posted $0.82 earnings per share. The company’s revenue was up 2.2% compared to the same quarter last year. Sell-side analysts anticipate that Open Text will post 4.05 EPS for the current year.

Open Text Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Friday, June 5th will be issued a $0.275 dividend. The ex-dividend date of this dividend is Friday, June 5th. This represents a $1.10 dividend on an annualized basis and a yield of 5.0%. Open Text’s payout ratio is presently 53.66%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of OTEX. Norges Bank acquired a new position in Open Text in the fourth quarter valued at approximately $106,700,000. First Trust Advisors LP lifted its holdings in Open Text by 27.3% in the fourth quarter. First Trust Advisors LP now owns 11,493,714 shares of the software maker’s stock valued at $374,394,000 after acquiring an additional 2,466,264 shares during the period. Connor Clark & Lunn Investment Management Ltd. lifted its holdings in Open Text by 456.0% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 2,312,755 shares of the software maker’s stock valued at $86,429,000 after acquiring an additional 1,896,755 shares during the period. Morgan Stanley lifted its holdings in Open Text by 76.8% in the fourth quarter. Morgan Stanley now owns 2,884,381 shares of the software maker’s stock valued at $93,973,000 after acquiring an additional 1,253,405 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its holdings in Open Text by 11.7% in 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 acquiring an additional 1,122,320 shares during the period. 70.37% of the stock is owned by institutional investors and hedge funds.

About Open Text

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.