Open Text Co. (NASDAQ:OTEX) Receives $38.60 Consensus Price Target from Analysts

Shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) have earned an average rating of “Hold” from the twelve analysts that are covering the company, Marketbeat.com reports. Eight equities research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $38.80.

Several equities analysts have recently commented on OTEX shares. BMO Capital Markets lowered their target price on Open Text from $38.00 to $33.00 and set a “market perform” rating for the company in a report on Friday, August 2nd. CIBC lowered their price target on shares of Open Text from $36.00 to $33.00 and set a “neutral” rating for the company in a research report on Friday, July 19th. Barclays cut their price objective on shares of Open Text from $38.00 to $36.00 and set an “equal weight” rating on the stock in a research report on Monday, August 5th. National Bank Financial lowered shares of Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. Finally, Jefferies Financial Group dropped their price target on shares of Open Text from $42.00 to $35.00 and set a “buy” rating on the stock in a research note on Friday, August 2nd.

Institutional Trading of Open Text

Several institutional investors have recently modified their holdings of the company. BNP Paribas Financial Markets lifted its holdings in Open Text by 57.7% in the 4th quarter. BNP Paribas Financial Markets now owns 11,888 shares of the software maker’s stock valued at $500,000 after acquiring an additional 4,351 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in Open Text by 1.3% during the fourth quarter. Dimensional Fund Advisors LP now owns 656,340 shares of the software maker’s stock valued at $27,580,000 after purchasing an additional 8,603 shares during the last quarter. Assetmark Inc. bought a new stake in Open Text during the fourth quarter worth approximately $48,000. EverSource Wealth Advisors LLC grew its position in Open Text by 18.0% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock worth $92,000 after buying an additional 334 shares during the last quarter. Finally, Ontario Teachers Pension Plan Board bought a new position in shares of Open Text in the fourth quarter valued at $516,000. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Price Performance

Shares of OTEX opened at $33.09 on Monday. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.51. The firm has a market cap of $8.93 billion, a price-to-earnings ratio of 53.37 and a beta of 1.11. Open Text has a 52 week low of $27.50 and a 52 week high of $45.47. The stock has a 50 day moving average of $31.59 and a 200-day moving average of $32.39.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, August 1st. The software maker reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.05. Open Text had a net margin of 8.06% and a return on equity of 25.00%. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.41 billion. During the same quarter in the previous year, the firm earned $0.79 earnings per share. The firm’s revenue for the quarter was down 8.6% compared to the same quarter last year. As a group, analysts forecast that Open Text will post 3.23 EPS for the current year.

Open Text Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 20th. Stockholders of record on Friday, August 30th were given a dividend of $0.192 per share. This represents a $0.77 annualized dividend and a dividend yield of 2.32%. The ex-dividend date of this dividend was Friday, August 30th. Open Text’s dividend payout ratio (DPR) is presently 169.35%.

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.