Open Text Corporation (NASDAQ:OTEX) Stock Has Average Target Price of $32.46

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) have received a consensus rating of “Hold” from the fourteen analysts that are currently covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, ten have given a hold recommendation and three have issued a buy recommendation on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $32.46.

Several equities analysts have weighed in on the company. Zacks Research cut Open Text from a “hold” rating to a “strong sell” rating in a research note on Friday, August 21st. Wall Street Zen upgraded shares of Open Text from a “hold” rating to a “buy” rating in a report on Saturday, September 5th. Raymond James Financial lowered shares of Open Text from an “outperform” rating to a “market perform” rating and dropped their price target for the company from $35.00 to $29.50 in a research report on Thursday, August 6th. Scotia cut their price target on shares of Open Text from $40.00 to $33.00 and set a “sector outperform” rating on the stock in a report on Friday, August 7th. Finally, UBS Group increased their price objective on shares of Open Text from $25.00 to $27.00 and gave the company a “neutral” rating in a research note on Friday, August 7th.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Royal Bank of Canada lifted its position in shares of Open Text by 10.9% in the first quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker’s stock worth $218,920,000 after buying an additional 965,385 shares in the last quarter. Bank of America Corp DE increased its stake in Open Text by 99.1% in the 1st quarter. Bank of America Corp DE now owns 1,349,545 shares of the software maker’s stock worth $30,014,000 after acquiring an additional 671,572 shares during the last quarter. Quantinno Capital Management LP raised its holdings in shares of Open Text by 109.8% during the 1st quarter. Quantinno Capital Management LP now owns 109,717 shares of the software maker’s stock worth $2,440,000 after acquiring an additional 57,432 shares in the last quarter. Sei Investments Co. boosted its position in shares of Open Text by 47.3% during the 1st quarter. Sei Investments Co. now owns 255,601 shares of the software maker’s stock valued at $5,684,000 after acquiring an additional 82,049 shares during the last quarter. Finally, Brandes Investment Partners LP grew its holdings in shares of Open Text by 1.2% in the fourth quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker’s stock valued at $296,679,000 after purchasing an additional 106,766 shares in the last quarter. Institutional investors own 70.37% of the company’s stock.

Open Text Price Performance

OTEX stock opened at $22.66 on Friday. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.81 and a current ratio of 0.81. The business has a 50-day simple moving average of $24.05 and a two-hundred day simple moving average of $23.20. The company has a market capitalization of $5.48 billion, a P/E ratio of 8.78 and a beta of 1.02. Open Text has a 52-week low of $19.77 and a 52-week high of $39.90.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 EPS for the quarter, topping the consensus estimate of $1.02 by $0.21. The firm had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.29 billion. Open Text had a return on equity of 25.76% and a net margin of 12.26%.The company’s quarterly revenue was up 2.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.97 earnings per share. Research analysts expect that Open Text will post 3.72 EPS for the current fiscal year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were paid a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.9%. The ex-dividend date was Friday, September 4th. This is a positive change from Open Text’s previous quarterly dividend of $0.2750. Open Text’s dividend payout ratio is presently 43.41%.

About Open Text

Open Text Corporation (NASDAQ: OTEX) is a Canadian software company that develops enterprise information management solutions. Its products help organizations capture, manage, secure, govern and exchange business information across content, processes and communications.

The company offers software and services through areas that include content management, business process automation, customer experience management, business-to-business integration, data protection and cybersecurity. OpenText’s portfolio supports cloud and on-premises deployments and is designed for use by businesses, governments and other large organizations.

Founded in 1991 and headquartered in Waterloo, Ontario, OpenText serves customers internationally across a broad range of industries and geographies.