Bank of New York Mellon Corp Makes New Investment in Open Text Corporation $OTEX

Key Points

• Bank of New York Mellon purchased 44,242 shares of Open Text worth approximately $980,000 in the second quarter. Institutional investors and hedge funds collectively own 70.37% of the company.
• Open Text exceeded quarterly expectations, reporting $1.23 in earnings per share versus the $1.02 consensus estimate and $1.33 billion in revenue, up 2.9% year over year.
• Analysts maintain a consensus “Hold” rating with an average price target of $32.46, while shares recently traded at $22.61. The company also declared a quarterly dividend of $0.28, representing an annualized yield of about 5%.

Bank of New York Mellon Corp purchased a new stake in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 44,242 shares of the software maker's stock, valued at approximately $980,000.

A number of other large investors have also recently bought and sold shares of OTEX. State of Wyoming bought a new stake in shares of Open Text during the 2nd quarter valued at approximately $390,000. Oppenheimer Asset Management Inc. acquired a new stake in shares of Open Text during the second quarter worth $471,000. Wedge Capital Management L L P NC raised its position in shares of Open Text by 44.0% in the 2nd quarter. Wedge Capital Management L L P NC now owns 196,153 shares of the software maker's stock worth $4,345,000 after acquiring an additional 59,922 shares in the last quarter. Legacy Wealth Asset Management LLC increased its holdings in Open Text by 2.9% in the second quarter. Legacy Wealth Asset Management LLC now owns 21,435 shares of the software maker's stock worth $475,000 after purchasing an additional 595 shares in the last quarter. Finally, Byrne Asset Management LLC increased its stake in shares of Open Text by 11.5% in the 2nd quarter. Byrne Asset Management LLC now owns 4,837 shares of the software maker's stock valued at $107,000 after acquiring an additional 500 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

OTEX has been the topic of a number of research reports. National Bank Financial lowered their target price on Open Text from $45.00 to $33.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 27th. UBS Group boosted their price objective on Open Text from $25.00 to $27.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Scotiabank dropped 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 research note on Friday, August 7th. Scotia cut their price target 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. Finally, Citigroup lifted their target price on shares of Open Text from $25.00 to $28.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Three analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Open Text currently has a consensus rating of "Hold" and an average target price of $32.46.

Open Text Price Performance

Shares of NASDAQ OTEX opened at $22.61 on Friday. The stock's 50-day simple moving average is $24.00 and its two-hundred day simple moving average is $23.31. Open Text Corporation has a twelve month low of $19.77 and a twelve month high of $39.90. The firm 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 posted its quarterly earnings data 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 company had revenue of $1.33 billion for the quarter, compared to analysts' expectations of $1.29 billion. During the same period in the prior year, the business earned $0.97 earnings per share. Open Text's revenue for the quarter was up 2.9% compared to the same quarter last year. As a group, equities analysts anticipate that Open Text Corporation will post 3.72 EPS for the current fiscal year.

Open Text Increases Dividend

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

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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