Open Text Corporation (NASDAQ:OTEX) Stock Has Average Price Target of $30.72

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) have earned a consensus rating of “Hold” from the twelve ratings firms that are covering the firm, Marketbeat Ratings reports. Nine research analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $30.72.

Several equities research analysts have recently commented on OTEX shares. Citigroup upped their price target on shares of Open Text from $25.00 to $28.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. Zacks Research raised Open Text from a “strong sell” rating to a “hold” rating in a research note on Monday, October 5th. Barclays raised their price objective on Open Text from $27.00 to $29.00 and gave the company an “equal weight” rating in a research report on Friday. Weiss Ratings raised shares of Open Text from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, October 14th. Finally, UBS Group boosted their target price on Open Text from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Friday, August 7th.

Open Text Stock Up 0.3%

NASDAQ OTEX opened at $24.92 on Friday. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.81 and a quick ratio of 0.81. Open Text has a 1 year low of $19.77 and a 1 year high of $35.26. The stock has a market capitalization of $6.02 billion, a PE ratio of 6.44 and a beta of 0.98. The business’s 50-day moving average is $24.44 and its 200 day moving average is $23.82.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings results on Thursday, November 5th. The software maker reported $1.05 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.11. Open Text had a return on equity of 25.76% and a net margin of 12.26%. The company had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period in the previous year, the company posted $1.05 earnings per share. The firm’s revenue was down 4.0% on a year-over-year basis. Sell-side analysts forecast that Open Text will post 3.72 earnings per share for the current year.

Open Text Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Friday, December 4th will be given a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date of this dividend is Friday, December 4th. Open Text’s dividend payout ratio is 42.42%.

Institutional Investors Weigh In On Open Text

Hedge funds and other institutional investors have recently modified their holdings of the business. The Manufacturers Life Insurance Company bought a new stake in shares of Open Text during the 2nd quarter worth approximately $266,599,000. Royal Bank of Canada lifted its position in shares of Open Text by 10.9% during the first quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker’s stock worth $218,920,000 after purchasing an additional 965,385 shares during the last quarter. Letko Brosseau & Associates Inc. grew its holdings in shares of Open Text by 0.3% in the third quarter. Letko Brosseau & Associates Inc. now owns 8,866,816 shares of the software maker’s stock worth $199,289,000 after purchasing an additional 29,188 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Open Text by 24.0% in the first quarter. Dimensional Fund Advisors LP now owns 4,142,610 shares of the software maker’s stock worth $92,120,000 after purchasing an additional 802,276 shares during the last quarter. Finally, Cibc World Market Inc. purchased a new position in Open Text in the 2nd quarter worth about $70,939,000. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Open Text Company Profile

OpenText (NASDAQ: OTEX) develops software that helps organizations manage, secure and use business information. Its offerings include tools for content management, process automation, business-to-business data exchange, analytics, artificial intelligence and cybersecurity, delivered through cloud-based and on-premises products.

Founded in 1991 and headquartered in Waterloo, Ontario, OpenText serves businesses and public-sector organizations around the world. The company’s history includes major acquisitions, including its 2023 acquisition of Micro Focus, which broadened its enterprise software portfolio.

Mark J.