Open Text Corporation (NASDAQ:OTEX) Receives $33.67 Consensus Target Price from Analysts

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) have received an average rating of “Hold” from the fourteen ratings firms that are currently covering the firm, Marketbeat.com reports. Ten research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $33.6667.

Several analysts have recently weighed in on the stock. Raymond James Financial lowered their target price on shares of Open Text from $42.00 to $35.00 and set an “outperform” rating on the stock in a report on Friday, May 8th. National Bank Financial reduced their price objective on shares of Open Text from $45.00 to $33.00 and set an “outperform” rating for the company in a research report on Wednesday, May 27th. Scotiabank lowered their price objective on Open Text from $50.00 to $40.00 and set a “sector outperform” rating on the stock in a report on Friday, May 8th. Wall Street Zen upgraded Open Text from a “buy” rating to a “strong-buy” rating in a research report on Saturday, May 9th. Finally, Barclays increased their target price on Open Text from $25.00 to $27.00 and gave the stock an “equal weight” rating in a research note on Monday, May 11th.

Open Text Stock Performance

Shares of OTEX stock opened at $23.29 on Friday. The company has a market cap of $5.65 billion, a P/E ratio of 11.36 and a beta of 1.04. The firm has a fifty day moving average price of $22.74 and a 200 day moving average price of $24.97. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.56. Open Text has a 12 month low of $19.77 and a 12 month high of $39.90.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, May 7th. The software maker reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.94 by $0.07. The business had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The company’s revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.82 EPS. Sell-side analysts predict that Open Text will post 4.05 earnings per share for the current fiscal year.

Open Text Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were paid a $0.275 dividend. This represents a $1.10 annualized dividend and a yield of 4.7%. The ex-dividend date of this dividend was Friday, June 5th. Open Text’s dividend payout ratio (DPR) is presently 53.66%.

Institutional Trading of Open Text

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new stake in shares of Open Text during the fourth quarter worth approximately $106,700,000. First Trust Advisors LP raised its holdings in Open Text by 27.3% in the fourth quarter. First Trust Advisors LP now owns 11,493,714 shares of the software maker’s stock valued at $374,394,000 after acquiring an additional 2,466,264 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its stake in Open Text by 456.0% during the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 2,312,755 shares of the software maker’s stock valued at $86,429,000 after acquiring an additional 1,896,755 shares during the last quarter. Morgan Stanley boosted its stake in Open Text by 76.8% during the 4th quarter. Morgan Stanley now owns 2,884,381 shares of the software maker’s stock valued at $93,973,000 after acquiring an additional 1,253,405 shares during the last quarter. Finally, The Manufacturers Life Insurance Company grew its holdings in Open Text by 11.7% during the 4th quarter. The Manufacturers Life Insurance Company now owns 10,734,420 shares of the software maker’s stock worth $349,978,000 after acquiring an additional 1,122,320 shares in the last quarter. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Open Text Company Profile

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.