Brokerages Set Open Text Co. (NASDAQ:OTEX) PT at $35.55

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) has earned a consensus rating of “Hold” from the twelve ratings firms that are currently covering the stock, Marketbeat.com reports. Nine investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $35.55.

A number of brokerages recently issued reports on OTEX. Barclays cut their price objective on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a research report on Friday, November 1st. TD Securities reduced their price target on shares of Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a research note on Monday, December 30th. BMO Capital Markets lowered their price objective on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a research report on Friday, November 1st. Scotiabank cut their target price on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research report on Friday, November 1st. Finally, Citigroup lowered their price target on Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a research report on Friday, November 1st.

Hedge Funds Weigh In On Open Text

Hedge funds and other institutional investors have recently made changes to their positions in the stock. JARISLOWSKY FRASER Ltd raised its holdings in Open Text by 5.1% in the second quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock valued at $471,415,000 after acquiring an additional 767,822 shares in the last quarter. The Manufacturers Life Insurance Company raised its holdings in shares of Open Text by 1.1% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker’s stock valued at $187,952,000 after purchasing an additional 63,620 shares in the last quarter. Cooke & Bieler LP lifted its position in shares of Open Text by 18.6% during the 2nd quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock worth $166,325,000 after purchasing an additional 867,978 shares during the last quarter. National Bank of Canada FI grew its stake in shares of Open Text by 1.1% during the third quarter. National Bank of Canada FI now owns 4,068,116 shares of the software maker’s stock worth $135,399,000 after purchasing an additional 46,223 shares in the last quarter. Finally, Letko Brosseau & Associates Inc. increased its holdings in Open Text by 16.8% in the second quarter. Letko Brosseau & Associates Inc. now owns 3,929,040 shares of the software maker’s stock valued at $117,956,000 after buying an additional 566,150 shares during the last quarter. Hedge funds and other institutional investors own 70.37% of the company’s stock.

Open Text Stock Performance

NASDAQ:OTEX opened at $28.57 on Wednesday. The company’s 50-day moving average is $29.57 and its two-hundred day moving average is $30.97. The firm has a market capitalization of $7.56 billion, a price-to-earnings ratio of 16.51 and a beta of 1.12. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.79 and a quick ratio of 0.79. Open Text has a 1-year low of $27.05 and a 1-year high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.13. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The company had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.28 billion. During the same period in the prior year, the business posted $0.90 earnings per share. The firm’s revenue for the quarter was down 11.0% compared to the same quarter last year. Analysts forecast that Open Text will post 3.37 EPS for the current year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, December 20th. Shareholders of record on Friday, November 29th were issued a dividend of $0.262 per share. This is an increase from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Friday, November 29th. This represents a $1.05 annualized dividend and a yield of 3.67%. Open Text’s dividend payout ratio is 60.69%.

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.