Bank of New York Mellon Corp Cuts Stock Holdings in Open Text Corporation $OTEX

Key Points

• Bank of New York Mellon cut its Open Text holdings by 52.3% in the first quarter, selling 263,897 shares and retaining 240,654 shares valued at approximately $5.35 million.
• Other institutional investors were more bullish: Value Partners Investments increased its stake by 30%, Munich Reinsurance raised holdings by 59%, and institutions collectively own 70.37% of Open Text.
• Open Text beat quarterly expectations with $1.01 in adjusted EPS versus $0.94 forecast and $1.28 billion in revenue, but analysts maintain a consensus “Hold” rating with an average price target of $33.67.

Bank of New York Mellon Corp lowered its holdings in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 52.3% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 240,654 shares of the software maker's stock after selling 263,897 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.10% of Open Text worth $5,352,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Brandes Investment Partners LP lifted its stake in shares of Open Text by 1.2% during the 4th quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker's stock worth $296,679,000 after purchasing an additional 106,766 shares during the last quarter. Value Partners Investments Inc. grew its stake in Open Text by 30.0% in the first quarter. Value Partners Investments Inc. now owns 2,413,989 shares of the software maker's stock valued at $53,687,000 after purchasing an additional 556,534 shares during the last quarter. Montrusco Bolton Investments Inc. purchased a new position in Open Text in the fourth quarter valued at about $7,140,000. Munich Reinsurance Co Stock Corp in Munich raised its holdings in Open Text by 59.0% in the fourth quarter. Munich Reinsurance Co Stock Corp in Munich now owns 427,564 shares of the software maker's stock worth $14,121,000 after purchasing an additional 158,698 shares in the last quarter. Finally, Jupiter Asset Management Ltd. bought a new position in Open Text in the fourth quarter worth about $1,974,000. Hedge funds and other institutional investors own 70.37% of the company's stock.

Open Text Stock Performance

Shares of Open Text stock opened at $26.42 on Wednesday. The company has a 50 day moving average price of $22.93 and a 200 day moving average price of $23.67. The firm has a market capitalization of $6.40 billion, a P/E ratio of 12.89 and a beta of 1.03. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.56. Open Text Corporation has a 52 week low of $19.77 and a 52 week high of $39.90.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its earnings results on Thursday, May 7th. The software maker reported $1.01 earnings per share for the quarter, topping the consensus estimate 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 net margin of 9.91% and a return on equity of 24.77%. Open Text's revenue was up 2.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.82 EPS. Sell-side analysts expect that Open Text Corporation will post 4.05 EPS for the current year.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on OTEX shares. Wall Street Zen cut shares of Open Text from a "strong-buy" rating to a "buy" rating in a report on Tuesday, July 28th. National Bank Financial reduced their price objective on shares of Open Text from $45.00 to $33.00 and set an "outperform" rating for the company in a research note on Wednesday, May 27th. Barclays increased their target price on shares of Open Text from $25.00 to $27.00 and gave the company an "equal weight" rating in a research report on Monday, May 11th. Royal Bank Of Canada lowered their target price on shares of Open Text from $30.00 to $27.00 and set a "sector perform" rating for the company in a research note on Friday, May 8th. Finally, Raymond James Financial cut their price target on shares of Open Text from $42.00 to $35.00 and set an "outperform" rating on the stock in a report on Friday, May 8th. Four investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $33.67.

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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