Canada Pension Plan Investment Board Sells 6,169 Shares of Open Text Co. (NASDAQ:OTEX)

Canada Pension Plan Investment Board lessened its holdings in Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 0.7% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 862,606 shares of the software maker’s stock after selling 6,169 shares during the quarter. Canada Pension Plan Investment Board owned approximately 0.32% of Open Text worth $25,897,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of OTEX. Intech Investment Management LLC boosted its stake in Open Text by 227.1% in the second quarter. Intech Investment Management LLC now owns 64,196 shares of the software maker’s stock valued at $1,927,000 after acquiring an additional 44,573 shares during the last quarter. Bristol Gate Capital Partners Inc. lifted its stake in shares of Open Text by 41.6% in the 2nd quarter. Bristol Gate Capital Partners Inc. now owns 31,398 shares of the software maker’s stock valued at $942,000 after purchasing an additional 9,221 shares during the period. MQS Management LLC bought a new position in shares of Open Text in the 2nd quarter worth $252,000. XTX Topco Ltd acquired a new stake in shares of Open Text during the second quarter worth $778,000. Finally, JARISLOWSKY FRASER Ltd increased its holdings in Open Text by 5.1% in the second quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock valued at $471,415,000 after purchasing an additional 767,822 shares during the last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on OTEX shares. BMO Capital Markets reduced their target price on Open Text from $38.00 to $33.00 and set a “market perform” rating on the stock in a report on Friday, August 2nd. National Bankshares cut shares of Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price objective for the company. in a report on Friday, August 2nd. Citigroup cut their target price on shares of Open Text from $37.00 to $32.00 and set a “neutral” rating on the stock in a report on Wednesday, June 26th. Barclays decreased their price target on shares of Open Text from $38.00 to $36.00 and set an “equal weight” rating for the company in a report on Monday, August 5th. Finally, Jefferies Financial Group reduced their target price on Open Text from $42.00 to $35.00 and set a “buy” rating on the stock in a report on Friday, August 2nd. Eight investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Open Text presently has an average rating of “Hold” and a consensus price target of $38.60.

Open Text Price Performance

NASDAQ:OTEX opened at $32.76 on Monday. Open Text Co. has a 52-week low of $27.50 and a 52-week high of $45.47. The company has a market cap of $8.84 billion, a P/E ratio of 52.84 and a beta of 1.11. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.81 and a current ratio of 0.81. The stock’s 50-day simple moving average is $31.38 and its 200 day simple moving average is $32.53.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, August 1st. The software maker reported $0.98 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.93 by $0.05. Open Text had a return on equity of 25.00% and a net margin of 8.06%. The company had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.41 billion. During the same quarter in the prior year, the business posted $0.79 EPS. The business’s revenue was down 8.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Open Text Co. will post 3.23 EPS for the current fiscal year.

Open Text Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 20th. Shareholders of record on Friday, August 30th were paid a $0.192 dividend. This represents a $0.77 dividend on an annualized basis and a yield of 2.34%. The ex-dividend date was Friday, August 30th. Open Text’s dividend payout ratio is currently 169.35%.

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.