Earnings results for Open Text (NASDAQ:OTEX)
Open Text Corporation is expected* to report earnings on 11/05/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 2 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.66. The reported EPS for the same quarter last year was $0.27.
Open Text last posted its earnings data on August 6th, 2020. The software maker reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.61 by $0.19. The firm had revenue of $826.60 million for the quarter, compared to analysts’ expectations of $809.36 million. Its revenue for the quarter was up 10.6% on a year-over-year basis. Open Text has generated $2.80 earnings per share over the last year and currently has a price-to-earnings ratio of 44.4. Open Text has confirmed that its next quarterly earnings report will be published on Thursday, November 5th, 2020.
Analyst Opinion on Open Text (NASDAQ:OTEX)
10 Wall Street analysts have issued ratings and price targets for Open Text in the last 12 months. Their average twelve-month price target is $51.25, predicting that the stock has a possible upside of 32.57%. The high price target for OTEX is $58.00 and the low price target for OTEX is $45.00. There are currently 1 sell rating, 3 hold ratings and 6 buy ratings for the stock, resulting in a consensus rating of “Buy.”
Open Text has received a consensus rating of Buy. The company’s average rating score is 2.50, and is based on 6 buy ratings, 3 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $51.25, Open Text has a forecasted upside of 32.6% from its current price of $38.66. Open Text has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.
Dividend Strength: Open Text (NASDAQ:OTEX)
Open Text pays a meaningful dividend of 1.86%, higher than the bottom 25% of all stocks that pay dividends. Open Text has been increasing its dividend for 6 years. The dividend payout ratio of Open Text is 25.00%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Open Text will have a dividend payout ratio of 22.80% next year. This indicates that Open Text will be able to sustain or increase its dividend.
Insiders buying/selling: Open Text (NASDAQ:OTEX)
In the past three months, Open Text insiders have not sold or bought any company stock. Only 10.58% of the stock of Open Text is held by insiders. 63.80% of the stock of Open Text is held by institutions. High institutional ownership can be a signal of strong market trust in this company.
Earnings and Valuation of Open Text (NASDAQ:OTEX
Earnings for Open Text are expected to grow by 5.14% in the coming year, from $2.92 to $3.07 per share. The P/E ratio of Open Text is 44.44, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.26. The P/E ratio of Open Text is 44.44, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 62.73. Open Text has a P/B Ratio of 2.62. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.
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