Open Text Co. (OTEX) to Issue Quarterly Dividend of $0.44 on June 18th

Open Text Co. (NASDAQ:OTEX) (TSE:OTC) declared 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 boost from Open Text’s previous quarterly dividend of $0.25.

Open Text has increased its dividend by an average of 10.5% per year over the last three years and has increased 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 traded down $5.22 during trading hours on Friday, hitting $30.25. 3,706,318 shares of the company were exchanged, compared to its average volume of 728,893. 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 has a fifty-two week low of $28.19 and a fifty-two week high of $45.47. The company has a market cap of $8.25 billion, a price-to-earnings ratio of 48.79 and a beta of 1.11. The firm’s fifty day moving average is $37.32 and its 200 day moving average is $38.70.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, February 1st. The software maker reported $1.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.10 by $0.01. Open Text had a net margin of 2.85% and a return on equity of 24.61%. The firm had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.48 billion. On average, equities analysts anticipate that Open Text will post 4.14 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Royal Bank of Canada reiterated an “outperform” rating and set a $53.00 price target on shares of Open Text in a research report on Friday, February 2nd. Jefferies Financial Group reduced their target price on Open Text from $45.00 to $42.00 and set a “buy” rating on the stock in a report on Friday. StockNews.com cut Open Text from a “buy” rating to a “hold” rating in a report on Friday. Citigroup reduced their price objective on Open Text from $42.00 to $37.00 and set a “neutral” rating on the stock in a research note on Friday. Finally, CIBC lowered their target price on Open Text from $44.00 to $38.50 and set a “neutral” rating for the company in a research note on Friday. Six analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, Open Text presently has an average rating of “Hold” and an average 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.