Wellington Management Group LLP Decreases Stock Holdings in Open Text Co. (NASDAQ:OTEX)

Wellington Management Group LLP cut its stake in shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 20.5% in the fourth quarter, according to its most recent disclosure with the SEC. The firm owned 110,265 shares of the software maker’s stock after selling 28,418 shares during the period. Wellington Management Group LLP’s holdings in Open Text were worth $4,657,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in OTEX. Goldman Sachs Group Inc. lifted its stake in Open Text by 20.9% in the 4th quarter. Goldman Sachs Group Inc. now owns 685,944 shares of the software maker’s stock valued at $28,823,000 after buying an additional 118,663 shares in the last quarter. Syon Capital LLC acquired a new stake in shares of Open Text in the fourth quarter worth approximately $243,000. FIL Ltd increased its position in shares of Open Text by 25.7% during the fourth quarter. FIL Ltd now owns 9,058,024 shares of the software maker’s stock worth $380,696,000 after purchasing an additional 1,853,891 shares in the last quarter. K2 Principal Fund L.P. acquired a new position in Open Text in the 4th quarter valued at $937,000. Finally, Neuberger Berman Group LLC lifted its holdings in Open Text by 99.5% in the 4th quarter. Neuberger Berman Group LLC now owns 143,881 shares of the software maker’s stock valued at $6,077,000 after purchasing an additional 71,748 shares in the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Stock Up 0.6 %

Shares of NASDAQ:OTEX opened at $30.04 on Friday. The company has a market capitalization of $8.11 billion, a price-to-earnings ratio of 48.45 and a beta of 1.11. Open Text Co. has a 12-month low of $27.54 and a 12-month high of $45.47. The business has a 50-day moving average price of $30.69 and a 200 day moving average price of $36.64. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 2.01.

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

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 18th. Shareholders of record on Friday, May 31st were paid a dividend of $0.435 per share. This represents a $1.74 dividend on an annualized basis and a yield of 5.79%. This is a boost from Open Text’s previous quarterly dividend of $0.25. The ex-dividend date was Friday, May 31st. Open Text’s dividend payout ratio is 159.68%.

Analysts Set New Price Targets

A number of brokerages have recently commented on OTEX. Barclays reduced their target price on shares of Open Text from $44.00 to $38.00 and set an “equal weight” rating for the company in a research report on Friday, May 3rd. TD Securities decreased their target price on shares of Open Text from $54.00 to $40.00 and set a “buy” rating on the stock in a research note on Friday, May 3rd. Scotiabank restated a “sector perform” rating on shares of Open Text in a research report on Friday, May 3rd. Raymond James reduced their price objective on Open Text from $55.00 to $48.00 and set an “outperform” rating on the stock in a research report on Friday, May 3rd. Finally, StockNews.com upgraded Open Text from a “hold” rating to a “buy” rating in a report on Saturday, May 11th. Six research analysts have rated the stock with a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $41.50.

About Open Text

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.