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

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has received a consensus recommendation of “Hold” from the eleven analysts that are presently covering the company, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, eight have assigned a hold recommendation and two have given a buy recommendation to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $32.30.

Several research analysts have recently issued reports on OTEX shares. CIBC lowered their price objective on Open Text from $33.00 to $31.00 and set a “neutral” rating for the company in a research note on Friday. Scotiabank decreased their price target on shares of Open Text from $35.00 to $30.00 and set a “sector perform” rating for the company in a research report on Monday, April 28th. BMO Capital Markets cut their price target on shares of Open Text from $30.00 to $28.00 and set a “market perform” rating on the stock in a report on Friday. National Bankshares decreased their price objective 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. Finally, StockNews.com downgraded Open Text from a “buy” rating to a “hold” rating in a report on Monday.

Open Text Price Performance

OTEX stock opened at $26.82 on Tuesday. The company’s 50-day moving average price is $25.73 and its two-hundred day moving average price is $28.02. The firm has a market cap of $6.96 billion, a P/E ratio of 10.90 and a beta of 1.13. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 1.50. Open Text has a 12 month low of $22.79 and a 12 month high of $34.20.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Wednesday, April 30th. The software maker reported $0.82 earnings per share for the quarter, beating the consensus estimate of $0.81 by $0.01. Open Text had a return on equity of 23.23% and a net margin of 12.21%. The business had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same period last year, the firm posted $0.94 earnings per share. Open Text’s revenue was down 13.3% compared to the same quarter last year. On average, analysts anticipate that Open Text will post 3.45 earnings per share for the current fiscal year.

Open Text Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 20th. Investors of record on Friday, June 6th will be given a $0.2625 dividend. This represents a $1.05 annualized dividend and a dividend yield of 3.91%. The ex-dividend date of this dividend is Friday, June 6th. Open Text’s dividend payout ratio (DPR) is 42.68%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Versant Capital Management Inc bought a new position in Open Text during the 1st quarter worth approximately $26,000. IFP Advisors Inc increased its stake in shares of Open Text by 103.8% in the fourth quarter. IFP Advisors Inc now owns 1,011 shares of the software maker’s stock worth $29,000 after buying an additional 515 shares during the period. Blue Trust Inc. raised its holdings in Open Text by 40.8% during the 4th quarter. Blue Trust Inc. now owns 1,373 shares of the software maker’s stock valued at $39,000 after buying an additional 398 shares during the last quarter. Parallel Advisors LLC grew its holdings in Open Text by 219.3% in the 1st quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker’s stock worth $49,000 after acquiring an additional 1,331 shares during the last quarter. Finally, Aquatic Capital Management LLC purchased a new position in shares of Open Text in the fourth quarter valued at about $60,000. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Open Text Company Profile

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.