Stifel Financial Corp Makes New $2.23 Million Investment in Open Text Co. (NASDAQ:OTEX)

Stifel Financial Corp acquired a new stake in Open Text Co. (NASDAQ:OTEX) (TSE:OTC) in the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 67,058 shares of the software maker’s stock, valued at approximately $2,232,000.

A number of other hedge funds also recently made changes to their positions in OTEX. Brandes Investment Partners LP lifted its position in shares of Open Text by 236.8% during the 2nd quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock worth $55,059,000 after buying an additional 1,290,011 shares during the period. The Manufacturers Life Insurance Company boosted its stake in shares of Open Text by 25.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock valued at $167,277,000 after purchasing an additional 1,118,479 shares in the last quarter. Cooke & Bieler LP grew its holdings in shares of Open Text by 18.6% in the 2nd quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock worth $166,325,000 after purchasing an additional 867,978 shares during the last quarter. JARISLOWSKY FRASER Ltd increased its position in shares of Open Text by 5.1% during the 2nd quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock worth $471,415,000 after purchasing an additional 767,822 shares in the last quarter. Finally, National Bank of Canada FI lifted its holdings in Open Text by 17.5% during the 2nd quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock valued at $120,390,000 after purchasing an additional 599,790 shares during the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Stock Performance

OTEX stock opened at $27.42 on Friday. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.54. Open Text Co. has a twelve month low of $27.20 and a twelve month high of $45.47. The business’s fifty day moving average is $30.76 and its 200-day moving average is $30.97. The company has a market cap of $7.29 billion, a P/E ratio of 15.85 and a beta of 1.11.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.13. The firm had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.28 billion. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The company’s quarterly revenue was down 11.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.90 earnings per share. Equities research analysts forecast that Open Text Co. will post 3.37 EPS for the current year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be issued a dividend of $0.262 per share. The ex-dividend date is Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a yield of 3.82%. This is a boost from Open Text’s previous quarterly dividend of $0.19. Open Text’s payout ratio is currently 60.69%.

Analysts Set New Price Targets

Several analysts have recently weighed in on OTEX shares. Barclays dropped their price objective on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a report on Friday, November 1st. StockNews.com upgraded Open Text from a “buy” rating to a “strong-buy” rating in a research report on Tuesday. TD Securities decreased their target price on Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a report on Friday, November 1st. Scotiabank lowered their target price on Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research note on Friday, November 1st. Finally, UBS Group started coverage on shares of Open Text in a research report on Tuesday. They set a “neutral” rating and a $32.00 price target on the stock. Nine analysts have rated the stock with a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $35.55.

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.