Open Text Co. (NASDAQ:OTEX) Plans Quarterly Dividend of $0.44

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) announced a quarterly dividend on Thursday, May 2nd, Zacks reports. Shareholders of record on Friday, May 31st will be paid a dividend of 0.435 per share by the software maker on Tuesday, June 18th. This represents a $1.74 annualized dividend and a yield of 5.75%. The ex-dividend date of this dividend is Friday, May 31st. This is a positive change from Open Text’s previous quarterly dividend of $0.25.

Open Text has raised its dividend payment by an average of 10.5% annually over the last three years and has raised its dividend annually for the last 1 consecutive years. Open Text has a payout ratio of 19.5% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Open Text to earn $4.50 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 22.2%.

Open Text Price Performance

Shares of OTEX stock traded down $5.22 during trading hours on Friday, hitting $30.25. 3,706,318 shares of the company’s stock were exchanged, compared to its average volume of 728,893. The firm has a 50 day moving average of $37.32 and a two-hundred day moving average of $38.70. Open Text has a fifty-two week low of $28.19 and a fifty-two week high of $45.47. The firm has a market cap of $8.25 billion, a P/E ratio of 48.79 and a beta of 1.11. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 2.10.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.10 by $0.01. The business had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.48 billion. Open Text had a net margin of 2.85% and a return on equity of 24.61%. Sell-side analysts forecast that Open Text will post 4.14 EPS for the current year.

Analyst Upgrades and Downgrades

OTEX has been the topic of several research analyst reports. Raymond James lowered their price objective on Open Text from $55.00 to $48.00 and set an “outperform” rating on the stock in a report on Friday. BMO Capital Markets cut Open Text from an “outperform” rating to a “market perform” rating and dropped their price target for the stock from $50.00 to $38.00 in a research report on Friday. TD Securities reduced their price objective on Open Text from $54.00 to $40.00 and set a “buy” rating for the company in a research note on Friday. CIBC lowered their target price on shares of Open Text from $44.00 to $38.50 and set a “neutral” rating on the stock in a research note on Friday. Finally, Jefferies Financial Group reduced their target price on shares of Open Text from $45.00 to $42.00 and set a “buy” rating for the company in a research report on Friday. Six investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $42.25.

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.