Amundi Raises Stock Holdings in Open Text Corporation $OTEX

Key Points

• Amundi increased its Open Text holdings by 154.9% in the second quarter, purchasing 1.37 million additional shares and bringing its stake to 2.26 million shares, or 0.93% of the company.
• Open Text reported quarterly revenue of $1.33 billion and EPS of $1.23, beating analyst estimates of $1.29 billion and $1.02, respectively. Revenue rose 2.9% year over year.
• The company declared a quarterly dividend of $0.28, equivalent to a 5.0% annualized yield. Analysts maintain a consensus “Hold” rating, with an average price target of $32.46.

Amundi grew its holdings in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 154.9% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 2,260,072 shares of the software maker's stock after buying an additional 1,373,295 shares during the quarter. Amundi owned 0.93% of Open Text worth $50,061,000 as of its most recent SEC filing.

Several other large investors have also made changes to their positions in OTEX. The Manufacturers Life Insurance Company purchased a new position in Open Text in the 2nd quarter valued at about $266,599,000. Norges Bank acquired a new position in shares of Open Text during the fourth quarter valued at approximately $106,700,000. Cibc World Market Inc. acquired a new position in shares of Open Text during the second quarter valued at approximately $70,939,000. First Trust Advisors LP lifted its position in shares of Open Text by 27.3% in the fourth quarter. First Trust Advisors LP now owns 11,493,714 shares of the software maker's stock valued at $374,394,000 after acquiring an additional 2,466,264 shares in the last quarter. Finally, BlackRock Inc. purchased a new position in shares of Open Text in the second quarter valued at approximately $46,144,000. 70.37% of the stock is owned by institutional investors and hedge funds.

Open Text Price Performance

NASDAQ:OTEX opened at $22.61 on Friday. Open Text Corporation has a 52 week low of $19.77 and a 52 week high of $39.90. The stock's fifty day moving average is $24.00 and its two-hundred day moving average is $23.31. The company has a market capitalization of $5.47 billion, a P/E ratio of 8.76 and a beta of 1.02. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.43.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.21. Open Text had a return on equity of 25.76% and a net margin of 12.26%.The firm had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period last year, the company earned $0.97 EPS. The company's quarterly revenue was up 2.9% on a year-over-year basis. Equities analysts expect that Open Text Corporation will post 3.72 EPS for the current year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be issued a $0.28 dividend. The ex-dividend date is Friday, September 4th. This represents a $1.12 annualized dividend and a dividend yield of 5.0%. This is a boost from Open Text's previous quarterly dividend of $0.28. Open Text's dividend payout ratio (DPR) is presently 43.41%.

Analyst Ratings Changes

OTEX has been the subject of several recent research reports. Scotiabank reduced their price objective on Open Text from $40.00 to $33.00 and set a "sector outperform" rating for the company in a research note on Friday, August 7th. UBS Group lifted their target price on shares of Open Text from $25.00 to $27.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Citigroup upped their target price on shares of Open Text from $25.00 to $28.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. National Bank Financial reduced their target price on shares of Open Text from $45.00 to $33.00 and set an "outperform" rating for the company in a research report on Wednesday, May 27th. Finally, Zacks Research downgraded shares of Open Text from a "hold" rating to a "strong sell" rating in a research note on Friday, August 21st. Three investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Open Text presently has a consensus rating of "Hold" and a consensus target price of $32.46.

Open Text Company Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company's platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text's product suite includes content services, business process management, customer experience management, analytics and security products.

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