Open Text Corporation (NASDAQ:OTEX) Given Average Rating of “Hold” by Analysts

by · The Markets Daily

Open Text Corporation (NASDAQ:OTEX – Get Free Report) (TSE:OTC) has received a consensus recommendation of “Hold” from the fourteen research firms that are currently covering the firm, MarketBeat reports. Ten equities research analysts have rated the stock with a hold recommendation, three have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $39.25.

OTEX has been the topic of several analyst reports. Royal Bank Of Canada lifted their price objective on Open Text from $30.00 to $35.00 and gave the stock a “sector perform” rating in a report on Tuesday, September 2nd. Jefferies Financial Group upped their price target on shares of Open Text from $33.00 to $35.00 and gave the company a “hold” rating in a report on Thursday, November 6th. Weiss Ratings reissued a “hold (c+)” rating on shares of Open Text in a research report on Monday. CIBC raised their target price on Open Text from $34.00 to $40.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 29th. Finally, National Bankshares set a $45.00 price target on Open Text and gave the company an “outperform” rating in a report on Thursday, October 23rd.

View Our Latest Analysis on OTEX

Institutional Investors Weigh In On Open Text

Several institutional investors and hedge funds have recently modified their holdings of the stock. Sagard Holdings Management Inc. bought a new position in shares of Open Text in the 2nd quarter worth approximately $30,000. CIBC Private Wealth Group LLC purchased a new stake in shares of Open Text in the 3rd quarter worth about $33,000. MAI Capital Management increased its stake in shares of Open Text by 58.7% in the 2nd quarter. MAI Capital Management now owns 1,595 shares of the software maker’s stock worth $47,000 after acquiring an additional 590 shares in the last quarter. Cromwell Holdings LLC increased its stake in shares of Open Text by 27.4% in the 2nd quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker’s stock worth $48,000 after acquiring an additional 352 shares in the last quarter. Finally, WealthCollab LLC lifted its holdings in shares of Open Text by 39.5% during the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock valued at $48,000 after purchasing an additional 464 shares during the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Price Performance

Shares of NASDAQ OTEX traded down $0.05 during trading hours on Wednesday, reaching $33.30. 35,350 shares of the stock traded hands, compared to its average volume of 1,271,786. The company’s 50-day simple moving average is $35.30 and its two-hundred day simple moving average is $33.24. The company has a market capitalization of $8.39 billion, a P/E ratio of 17.42 and a beta of 1.08. Open Text has a 52-week low of $22.79 and a 52-week high of $39.90. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 1.60.

Open Text (NASDAQ:OTEX – Get Free Report) (TSE:OTC) last posted its quarterly earnings results on Wednesday, November 5th. The software maker reported $1.05 EPS for the quarter, topping the consensus estimate of $1.00 by $0.05. Open Text had a net margin of 9.60% and a return on equity of 23.44%. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same period last year, the firm posted $0.93 earnings per share. The business’s revenue was up 1.5% compared to the same quarter last year. Equities research analysts forecast that Open Text will post 3.45 EPS for the current year.

Open Text Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, December 19th. Investors of record on Friday, December 5th were issued a dividend of $0.275 per share. This represents a $1.10 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date was Friday, December 5th. Open Text’s dividend payout ratio is currently 57.59%.

Open Text Company Profile

(Get Free Report)

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.

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