840,639 Shares of Open Text Corporation $OTEX Acquired by Bank of America Corp DE

Key Points

• Bank of America acquired 840,639 Open Text shares worth approximately $18.6 million, giving it a 0.35% stake. Institutional investors collectively own 70.37% of the company.
• Open Text exceeded quarterly expectations, reporting $1.23 in adjusted earnings per share versus the $1.02 consensus and $1.33 billion in revenue, up 2.9% year over year.
• The company raised its quarterly dividend to $0.28, equivalent to $1.12 annually and a 4.9% yield. Analysts maintain an overall “Hold” rating, with an average price target of $32.46.

Bank of America Corp DE bought a new stake in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 840,639 shares of the software maker's stock, valued at approximately $18,620,000. Bank of America Corp DE owned about 0.35% of Open Text as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Brandes Investment Partners LP increased its position in Open Text by 1.2% in the fourth quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker's stock worth $296,679,000 after buying an additional 106,766 shares during the last quarter. The Manufacturers Life Insurance Company bought a new stake in Open Text in the 2nd quarter valued at about $266,599,000. Royal Bank of Canada lifted its holdings in Open Text by 10.9% during the first quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker's stock valued at $218,920,000 after purchasing an additional 965,385 shares during the last quarter. Letko Brosseau & Associates Inc. boosted its position in Open Text by 0.5% during the fourth quarter. Letko Brosseau & Associates Inc. now owns 5,681,093 shares of the software maker's stock worth $185,260,000 after purchasing an additional 27,825 shares during the period. Finally, Norges Bank bought a new position in Open Text during the fourth quarter worth about $106,700,000. 70.37% of the stock is owned by institutional investors.

Open Text Price Performance

OTEX stock opened at $22.66 on Friday. The firm has a 50 day moving average of $24.05 and a 200-day moving average of $23.20. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.43. Open Text Corporation has a 12 month low of $19.77 and a 12 month high of $39.90. The firm has a market capitalization of $5.48 billion, a P/E ratio of 8.78 and a beta of 1.02.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its quarterly earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.21. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The firm had revenue of $1.33 billion for the quarter, compared to analysts' expectations of $1.29 billion. During the same quarter in the prior year, the firm posted $0.97 earnings per share. The business's quarterly revenue was up 2.9% on a year-over-year basis. As a group, sell-side analysts predict that Open Text Corporation will post 3.72 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were given a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 4.9%. This is a positive change from Open Text's previous quarterly dividend of $0.2750. The ex-dividend date was Friday, September 4th. Open Text's dividend payout ratio (DPR) is currently 43.41%.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on OTEX. Wall Street Zen raised shares of Open Text from a "hold" rating to a "buy" rating in a research report on Saturday, September 5th. Raymond James Financial downgraded shares of Open Text from an "outperform" rating to a "market perform" rating and cut their price objective for the stock from $35.00 to $29.50 in a report on Thursday, August 6th. UBS Group lifted their price objective on shares of Open Text from $25.00 to $27.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. Scotia lowered their target price on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating on the stock in a report on Friday, August 7th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Open Text in a research report on Monday. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Open Text has an average rating of "Hold" and an average price target of $32.46.

About Open Text

Open Text Corporation NASDAQ: OTEX is a Canadian software company that develops enterprise information management solutions. Its products help organizations capture, manage, secure, govern and exchange business information across content, processes and communications.

The company offers software and services through areas that include content management, business process automation, customer experience management, business-to-business integration, data protection and cybersecurity. OpenText's portfolio supports cloud and on-premises deployments and is designed for use by businesses, governments and other large organizations.

Founded in 1991 and headquartered in Waterloo, Ontario, OpenText serves customers internationally across a broad range of industries and geographies.

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