Open Text (NASDAQ:OTEX) Issues Quarterly Earnings Results

Open Text (NASDAQ:OTEX) (TSE:OTC) announced its quarterly earnings data on Wednesday. The software maker reported $1.05 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.05, Briefing.com reports. The firm had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.27 billion. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The company’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.93 EPS.

Open Text Trading Down 5.4%

OTEX traded down $2.04 during midday trading on Thursday, hitting $35.98. 1,810,137 shares of the company were exchanged, compared to its average volume of 1,295,379. The firm has a market capitalization of $9.07 billion, a P/E ratio of 21.81 and a beta of 1.14. Open Text has a 1-year low of $22.79 and a 1-year high of $39.90. The firm’s 50 day moving average price is $37.15 and its 200-day moving average price is $31.72. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.61.

Open Text Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, December 19th. Shareholders of record on Friday, December 5th will be issued a dividend of $0.275 per share. The ex-dividend date of this dividend is Friday, December 5th. This represents a $1.10 annualized dividend and a yield of 3.1%. Open Text’s payout ratio is presently 66.67%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of OTEX. Tidal Investments LLC lifted its stake in shares of Open Text by 2.6% in the 2nd quarter. Tidal Investments LLC now owns 18,059 shares of the software maker’s stock valued at $527,000 after purchasing an additional 460 shares during the period. Lazard Asset Management LLC lifted its stake in shares of Open Text by 1.0% in the 2nd quarter. Lazard Asset Management LLC now owns 66,512 shares of the software maker’s stock valued at $1,942,000 after purchasing an additional 655 shares during the period. BNP Paribas Financial Markets lifted its stake in shares of Open Text by 216.5% in the 2nd quarter. BNP Paribas Financial Markets now owns 80,669 shares of the software maker’s stock valued at $2,356,000 after purchasing an additional 55,179 shares during the period. Quantinno Capital Management LP lifted its stake in shares of Open Text by 115.2% in the 2nd quarter. Quantinno Capital Management LP now owns 25,967 shares of the software maker’s stock valued at $758,000 after purchasing an additional 13,899 shares during the period. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main lifted its stake in shares of Open Text by 29.2% in the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 112,128 shares of the software maker’s stock valued at $3,274,000 after purchasing an additional 25,369 shares during the period. 70.37% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities analysts have weighed in on OTEX shares. CIBC lifted their price objective on Open Text from $34.00 to $40.00 and gave the company a “neutral” rating in a report on Wednesday, October 29th. Scotiabank upgraded Open Text from a “sector perform” rating to an “outperform” rating and lifted their price target for the company from $35.00 to $50.00 in a research note on Wednesday, September 24th. Citigroup lifted their price target on Open Text from $31.00 to $38.00 and gave the company a “neutral” rating in a research note on Thursday, October 30th. TD Cowen reiterated a “hold” rating and issued a $40.00 price target on shares of Open Text in a research note on Friday, October 3rd. Finally, Barclays lifted their price target on Open Text from $33.00 to $39.00 and gave the company an “equal weight” rating in a research note on Tuesday, October 21st. Three analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $38.42.

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.