ASR Vermogensbeheer N.V. Reduces Stock Position in Open Text Corporation $OTEX

Key Points

• ASR Vermogensbeheer N.V. sharply cut its Open Text stake by 97.2% in the fourth quarter, selling more than 210,000 shares and leaving it with 6,142 shares worth about $200,000.
• Open Text beat fiscal Q3 expectations, posting EPS of $1.01 and revenue of $1.28 billion, while revenue rose 2.2% year over year and cloud revenue increased 6.6%.
• The company raised investor-return appeal with a quarterly dividend of $0.275 per share, but several analysts lowered price targets and the stock currently carries a consensus Hold rating.

ASR Vermogensbeheer N.V. lessened its stake in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 97.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,142 shares of the software maker's stock after selling 210,368 shares during the quarter. ASR Vermogensbeheer N.V.'s holdings in Open Text were worth $200,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also modified their holdings of the company. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of Open Text by 38.6% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 40,256 shares of the software maker's stock valued at $1,278,000 after buying an additional 11,205 shares during the last quarter. Danske Bank A S acquired a new position in Open Text in the 4th quarter valued at $64,000. Vest Financial LLC raised its holdings in Open Text by 56.4% in the 4th quarter. Vest Financial LLC now owns 27,547 shares of the software maker's stock valued at $897,000 after acquiring an additional 9,932 shares during the last quarter. Pictet Asset Management Holding SA increased its stake in Open Text by 43.6% in the fourth quarter. Pictet Asset Management Holding SA now owns 351,863 shares of the software maker's stock valued at $11,477,000 after purchasing an additional 106,836 shares during the last quarter. Finally, UBS Group AG increased its stake in Open Text by 61.3% in the fourth quarter. UBS Group AG now owns 662,567 shares of the software maker's stock valued at $21,586,000 after purchasing an additional 251,851 shares during the last quarter. Institutional investors and hedge funds own 70.37% of the company's stock.

Open Text News Roundup

Here are the key news stories impacting Open Text this week:

• Positive Sentiment: Open Text reported fiscal Q3 results that beat expectations, with EPS of $0.95 vs. $0.94 expected and revenue of $1.28 billion vs. $1.26 billion expected. Revenue rose 2.2% year over year, which can help reassure investors about business stability. Open Text earnings report
• Positive Sentiment: The company also highlighted cloud revenue growth of 6.6% and strong profitability metrics, including a 34.1% adjusted EBITDA margin and $0.70 of diluted EPS, which support the view that core operations remain healthy. OpenText Q3 financial results
• Positive Sentiment: Open Text declared a quarterly dividend of $0.275 per share, signaling continued shareholder returns and helping attract income-oriented investors.
• Neutral Sentiment: The company updated FY2026 revenue guidance to $5.2 billion-$5.3 billion, roughly in line with consensus, suggesting management is not seeing a major change in the outlook.
• Neutral Sentiment: Open Text also announced that Ayman Antoun officially joined as CEO, which adds a leadership-change angle that investors may watch but has not yet clearly changed the fundamentals.
• Negative Sentiment: Several analysts lowered price targets on Open Text, including Raymond James to $35 from $42, Scotia to $40 from $50, and Citigroup to $25 from $26. While ratings were not cut broadly, the target reductions may pressure sentiment near term. Analyst ratings update
• Negative Sentiment: Investors may also be weighing mixed underlying cash flow trends from the quarter, including weaker operating cash flow and higher capital spending, which could limit enthusiasm despite the earnings beat.

Wall Street Analysts Forecast Growth

Several research firms recently commented on OTEX. Barclays dropped their target price on Open Text from $30.00 to $25.00 and set an "equal weight" rating for the company in a research note on Monday, April 20th. TD Securities upgraded Open Text to a "hold" rating in a research note on Monday, February 2nd. Raymond James Financial dropped their target price on Open Text from $42.00 to $35.00 and set an "outperform" rating for the company in a research note on Friday. Canadian Imperial Bank of Commerce dropped their target price on Open Text from $40.00 to $37.00 and set a "neutral" rating for the company in a research note on Friday, January 16th. Finally, Scotiabank dropped their price target on shares of Open Text from $50.00 to $40.00 and set a "sector outperform" rating for the company in a research report on Friday. Four research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $34.50.

Open Text Stock Performance

Open Text stock opened at $24.73 on Monday. The stock's 50-day moving average is $23.08 and its 200-day moving average is $28.75. The company has a market cap of $6.00 billion, a price-to-earnings ratio of 12.06 and a beta of 1.04. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.94 and a quick ratio of 0.94. Open Text Corporation has a 12 month low of $20.00 and a 12 month high of $39.90.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its quarterly earnings data on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, topping analysts' consensus estimates of $0.94 by $0.07. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.26 billion. Open Text had a return on equity of 24.77% and a net margin of 9.91%.The company's quarterly revenue was up 2.2% compared to the same quarter last year. During the same period last year, the business posted $0.82 EPS. Equities analysts anticipate that Open Text Corporation will post 3.98 earnings per share for the current year.

Open Text Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be issued a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date is Friday, June 5th. Open Text's dividend payout ratio (DPR) is 53.66%.

Open Text 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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