Vanguard Group Inc. Raises Stock Holdings in Open Text Co. (NASDAQ:OTEX)

Vanguard Group Inc. lifted its holdings in shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 1.2% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 10,209,098 shares of the software maker’s stock after acquiring an additional 123,090 shares during the quarter. Vanguard Group Inc. owned 3.75% of Open Text worth $428,986,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Boston Partners increased its position in Open Text by 0.5% in the fourth quarter. Boston Partners now owns 60,137 shares of the software maker’s stock worth $2,527,000 after buying an additional 318 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in Open Text by 18.0% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock worth $92,000 after buying an additional 334 shares during the last quarter. Optiver Holding B.V. purchased a new stake in Open Text in the fourth quarter worth $27,000. Bank of Nova Scotia Trust Co. increased its position in Open Text by 5.5% in the third quarter. Bank of Nova Scotia Trust Co. now owns 12,222 shares of the software maker’s stock worth $429,000 after buying an additional 634 shares during the last quarter. Finally, First Affirmative Financial Network increased its position in Open Text by 9.1% in the fourth quarter. First Affirmative Financial Network now owns 8,044 shares of the software maker’s stock worth $338,000 after buying an additional 674 shares during the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Trading Down 0.4 %

NASDAQ OTEX opened at $29.65 on Thursday. The stock’s 50-day simple moving average is $30.89 and its two-hundred day simple moving average is $36.78. Open Text Co. has a twelve month low of $27.54 and a twelve month high of $45.47. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 2.01. The company has a market capitalization of $8.00 billion, a price-to-earnings ratio of 47.82 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, May 2nd. The software maker reported $0.84 earnings per share for the quarter, topping analysts’ consensus estimates of $0.81 by $0.03. Open Text had a return on equity of 24.45% and a net margin of 2.85%. The company had revenue of $1.45 billion during the quarter, compared to the consensus estimate of $1.43 billion. Research analysts forecast that Open Text Co. will post 3.79 EPS for the current fiscal year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 18th. Investors of record on Friday, May 31st were given a $0.435 dividend. This represents a $1.74 dividend on an annualized basis and a yield of 5.87%. The ex-dividend date was Friday, May 31st. This is a boost from Open Text’s previous quarterly dividend of $0.25. Open Text’s dividend payout ratio (DPR) is presently 159.68%.

Wall Street Analyst Weigh In

A number of analysts have issued reports on OTEX shares. BMO Capital Markets downgraded Open Text from an “outperform” rating to a “market perform” rating and decreased their target price for the stock from $50.00 to $38.00 in a research report on Friday, May 3rd. Scotiabank reaffirmed a “sector perform” rating on shares of Open Text in a report on Friday, May 3rd. CIBC cut their price target on Open Text from $38.50 to $36.00 and set a “neutral” rating for the company in a report on Friday, June 21st. Jefferies Financial Group cut their price target on Open Text from $45.00 to $42.00 and set a “buy” rating for the company in a report on Friday, May 3rd. Finally, National Bankshares cut their price target on Open Text from $60.00 to $50.00 and set an “outperform” rating for the company in a report on Friday, May 3rd. Six investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $41.50.

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.