Open Text Corporation (NASDAQ:OTEX) Receives $38.08 Average PT from Brokerages

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) have received an average recommendation of “Hold” from the thirteen ratings firms that are currently covering the company, MarketBeat Ratings reports. Ten analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $38.4167.

A number of equities analysts have commented on OTEX shares. Jefferies Financial Group cut Open Text from a “buy” rating to a “hold” rating and set a $33.00 target price for the company. in a report on Tuesday, August 12th. Citigroup increased their target price on Open Text from $31.00 to $38.00 and gave the company a “neutral” rating in a report on Thursday. Barclays increased their target price on Open Text from $33.00 to $39.00 and gave the company an “equal weight” rating in a report on Tuesday, October 21st. National Bank Financial raised Open Text from a “sector perform” rating to an “outperform” rating and set a $45.00 target price for the company in a report on Monday, September 15th. Finally, Scotiabank raised Open Text from a “sector perform” rating to an “outperform” rating and increased their target price for the company from $35.00 to $50.00 in a report on Wednesday, September 24th.

Institutional Investors Weigh In On Open Text

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. JARISLOWSKY FRASER Ltd increased its holdings in shares of Open Text by 0.6% in the third quarter. JARISLOWSKY FRASER Ltd now owns 21,150,154 shares of the software maker’s stock valued at $790,736,000 after purchasing an additional 117,436 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of Open Text by 6.1% in the first quarter. Vanguard Group Inc. now owns 11,151,279 shares of the software maker’s stock valued at $281,447,000 after purchasing an additional 639,514 shares during the last quarter. Brandes Investment Partners LP increased its holdings in shares of Open Text by 42.7% in the second quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker’s stock valued at $244,356,000 after purchasing an additional 2,506,058 shares during the last quarter. First Trust Advisors LP increased its holdings in shares of Open Text by 1.5% in the second quarter. First Trust Advisors LP now owns 8,262,084 shares of the software maker’s stock valued at $241,328,000 after purchasing an additional 119,163 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of Open Text by 11.7% in the second quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker’s stock valued at $225,898,000 after purchasing an additional 810,352 shares during the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Stock Performance

NASDAQ OTEX opened at $38.35 on Tuesday. The stock has a market capitalization of $9.66 billion, a price-to-earnings ratio of 23.24 and a beta of 1.17. Open Text has a twelve month low of $22.79 and a twelve month high of $39.90. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.61. The stock has a 50-day moving average of $36.83 and a 200 day moving average of $31.46.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, beating analysts’ consensus estimates of $0.86 by $0.11. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The business had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter in the prior year, the firm earned $0.98 earnings per share. The business’s revenue was down 3.8% compared to the same quarter last year. Sell-side analysts anticipate that Open Text will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 19th. Investors of record on Friday, September 5th were issued a $0.275 dividend. This is a boost from Open Text’s previous quarterly dividend of $0.26. This represents a $1.10 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend was Friday, September 5th. Open Text’s payout ratio is 66.67%.

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.