Open Text (NASDAQ:OTEX) Reports Quarterly Earnings, Beats Estimates by $0.07 EPS

Open Text (NASDAQ:OTEX – Get Rating) (TSE:OTC) announced its quarterly results on Wednesday. The software maker reported earnings per share of $0.70 for the quarter, beating the consensus estimate of $0.63 by $0.07, MarketWatch Earnings reports. The company posted revenue of $882.30 million in the quarter, compared to analysts’ expectations of $883.76 million. Open Text had a return on equity of 20.67% and a net margin of 14.35%. The company’s quarterly revenue increased by 5.9% compared to the same quarter last year. In the same period a year earlier, the company had earned earnings per share of $0.70.

Shares of OTEX traded down $0.44 at midday Friday, hitting $38.32. The stock had a trading volume of 838,435 shares, against an average volume of 591,580. The company’s 50-day moving average is $42.06 and its 200-day moving average is $45.68 . Open Text has a 12-month low of $37.37 and a 12-month high of $55.25. The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt ratio of 1.02. The company has a market capitalization of $10.36 billion, a price-earnings ratio of 22.28 and a beta of 0.93.

The company also recently announced a quarterly dividend, which will be paid on Friday, June 24. Shareholders of record on Friday, June 3 will receive a dividend of $0.2209. This represents a dividend of $0.88 on an annualized basis and a dividend yield of 2.31%. The ex-date of this dividend is Thursday, June 2. Open Text’s distribution rate is currently 51.15%.

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Several brokerages have recently weighed in on OTEX. Zacks Investment Research upgraded Open Text from a “hold” rating to a “sell” rating in a Wednesday, April 6 research report. BMO Capital Markets reduced its target price on Open Text from C$58.00 to C$53.00 in a Friday, February 4 research report. Barclays reduced its target price on Open Text from $58.00 to $50.00 in a Wednesday, January 12 research report. Royal Bank of Canada cut its target price on Open Text from $62.00 to $52.00 and set an “outperform” rating for the company in a research report on Thursday. Finally, TD Securities cut its target price on Open Text from $58.00 to $50.00 and set a “buy” rating for the company in a research report on Thursday. One financial analyst has assigned the stock a sell rating, one has assigned a hold rating, three has assigned a buy rating and one has assigned the company’s stock a high buy rating. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $53.50.

Institutional investors and hedge funds have recently been buying and selling shares of the company. Deutsche Bank AG increased its stake in Open Text shares by 4.8% in the fourth quarter. Deutsche Bank AG now owns 511,441 shares of the software maker valued at $24,283,000 after acquiring 23,195 additional shares in the last quarter. Morgan Stanley increased its stake in Open Text shares by 21.1% in the second quarter. Morgan Stanley now owns 321,322 shares of the software maker valued at $16,323,000 after acquiring an additional 56,035 shares in the last quarter. Allianz Asset Management GmbH increased its stake in Open Text shares by 2.6% in the 4th quarter. Allianz Asset Management GmbH now owns 187,849 shares of the software maker valued at $8,929,000 after acquiring 4,753 additional shares in the last quarter. Sei Investments Co. increased its stake in Open Text shares by 19.7% in Q4. Sei Investments Co. now owns 187,557 shares of the software maker valued at $8,909,000 after acquiring 30,928 additional shares in the last quarter. Finally, Millennium Management LLC purchased a new stake in Open Text stock in Q2 valued at approximately $505,000. Hedge funds and other institutional investors hold 70.43% of the company’s shares.

Open Text Company Profile (Get a rating)

Open Text Corporation engages in the design, development, marketing and sale of information management software and solutions. It offers content services; corporate network that manages data within the organization and outside the firewall; security and protection solutions to defend against cyber threats, prepare for business continuity and respond to breaches; digital forensics and forensic security solutions; OpenText security solutions to meet information cyber-resilience needs; Carbonite and Webroot products; and OpenText information management software platform.

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Earnings history for Open Text (NASDAQ:OTEX)

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