Open Text Co. (NASDAQ:OTEX) Receives Consensus Rating of “Hold” from Analysts

by · The Markets Daily

Shares of Open Text Co. (NASDAQ:OTEX – Get Free Report) (TSE:OTC) have earned an average rating of “Hold” from the twelve research firms that are currently covering the firm, MarketBeat reports. Eight investment analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $38.80.

A number of research firms have issued reports on OTEX. National Bankshares downgraded Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price target for the company. in a research report on Friday, August 2nd. BMO Capital Markets decreased their target price on Open Text from $38.00 to $33.00 and set a “market perform” rating for the company in a report on Friday, August 2nd. Citigroup raised their price target on shares of Open Text from $32.00 to $34.00 and gave the company a “neutral” rating in a report on Wednesday, September 25th. Jefferies Financial Group reduced their price target on shares of Open Text from $42.00 to $35.00 and set a “buy” rating on the stock in a research report on Friday, August 2nd. Finally, Barclays dropped their price objective on shares of Open Text from $38.00 to $36.00 and set an “equal weight” rating for the company in a research report on Monday, August 5th.

View Our Latest Research Report on Open Text

Institutional Trading of Open Text

A number of hedge funds and other institutional investors have recently modified their holdings of OTEX. FIL Ltd grew its stake in Open Text by 25.7% during the 4th quarter. FIL Ltd now owns 9,058,024 shares of the software maker’s stock valued at $380,696,000 after purchasing an additional 1,853,891 shares in the last quarter. Brandes Investment Partners LP boosted its stake in shares of Open Text by 236.8% during the 2nd quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock valued at $55,059,000 after buying an additional 1,290,011 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in shares of Open Text by 25.1% during the second quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock worth $167,277,000 after buying an additional 1,118,479 shares in the last quarter. Cooke & Bieler LP increased its stake in shares of Open Text by 18.6% in the second quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock worth $166,325,000 after buying an additional 867,978 shares during the last quarter. Finally, 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. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Trading Down 1.6 %

Shares of OTEX stock opened at $33.09 on Monday. The firm’s 50-day simple moving average is $31.59 and its 200-day simple moving average is $32.39. The company has a debt-to-equity ratio of 1.51, a current ratio of 0.81 and a quick ratio of 0.81. Open Text has a 1-year low of $27.50 and a 1-year high of $45.47. The firm has a market cap of $8.93 billion, a P/E ratio of 53.37 and a beta of 1.11.

Open Text (NASDAQ:OTEX – Get Free Report) (TSE:OTC) last announced its quarterly earnings results on Thursday, August 1st. The software maker reported $0.98 earnings per share for the quarter, beating analysts’ consensus estimates of $0.93 by $0.05. The company had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.41 billion. Open Text had a net margin of 8.06% and a return on equity of 25.00%. Open Text’s revenue for the quarter was down 8.6% on a year-over-year basis. During the same quarter last year, the business earned $0.79 EPS. As a group, equities analysts forecast that Open Text will post 3.23 EPS for the current year.

Open Text Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 20th. Shareholders of record on Friday, August 30th were given a $0.192 dividend. The ex-dividend date of this dividend was Friday, August 30th. This represents a $0.77 dividend on an annualized basis and a yield of 2.32%. Open Text’s payout ratio is currently 169.35%.

About Open Text

(Get Free Report

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.

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