Bank of Nova Scotia Invests $27.19 Million in Open Text Corporation $OTEX

Key Points

• Bank of Nova Scotia acquired 1.23 million Open Text shares worth approximately $27.19 million, representing about 0.51% of the company. Institutional investors collectively own 70.37% of Open Text.
• 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.
• The company maintains a quarterly dividend of $0.28 per share, equivalent to a 4.5% annualized yield. Analysts’ consensus rating is “Hold,” with an average price target of $32.46.

Bank of Nova Scotia bought a new stake in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC during the 2nd quarter, according to its most recent filing with the SEC. The fund bought 1,228,764 shares of the software maker's stock, valued at approximately $27,194,000. Bank of Nova Scotia owned approximately 0.51% of Open Text as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. FIL Ltd grew its stake in shares of Open Text by 5.7% in the 4th quarter. FIL Ltd now owns 12,155,000 shares of the software maker's stock valued at $395,853,000 after purchasing an additional 655,000 shares during the period. First Trust Advisors LP raised its holdings in shares of Open Text by 27.3% in the 4th quarter. First Trust Advisors LP now owns 11,493,714 shares of the software maker's stock worth $374,394,000 after buying an additional 2,466,264 shares in the last quarter. The Manufacturers Life Insurance Company lifted its position in shares of Open Text by 11.7% during the 4th quarter. The Manufacturers Life Insurance Company now owns 10,734,420 shares of the software maker's stock worth $349,978,000 after buying an additional 1,122,320 shares during the period. Royal Bank of Canada boosted its stake in Open Text by 10.9% in the 1st quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker's stock valued at $218,920,000 after buying an additional 965,385 shares in the last quarter. Finally, Brandes Investment Partners LP boosted its stake in Open Text by 1.2% in the 4th quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker's stock valued at $296,679,000 after buying an additional 106,766 shares in the last quarter. Institutional investors own 70.37% of the company's stock.

Open Text Price Performance

Open Text stock opened at $24.67 on Monday. The business's fifty day moving average is $23.31 and its two-hundred day moving average is $23.34. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.81 and a current ratio of 0.81. The firm has a market cap of $5.97 billion, a P/E ratio of 9.56 and a beta of 1.03. 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 announced its earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, beating analysts' consensus estimates of $1.02 by $0.21. The company had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.29 billion. Open Text had a return on equity of 25.76% and a net margin of 12.26%.The firm's quarterly revenue was up 2.9% compared to the same quarter last year. During the same period last year, the company posted $0.97 earnings per share. Equities research analysts forecast that Open Text Corporation will post 3.72 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be given a dividend of $0.28 per share. The ex-dividend date is Friday, September 4th. This is a positive change from Open Text's previous quarterly dividend of $0.28. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.5%. Open Text's dividend payout ratio (DPR) is currently 42.64%.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on OTEX shares. Barclays increased their price objective on Open Text from $25.00 to $27.00 and gave the stock an "equal weight" rating in a research note on Monday, May 11th. Wall Street Zen downgraded shares of Open Text from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. National Bank Financial lowered their target price on shares of Open Text from $45.00 to $33.00 and set an "outperform" rating on the stock in a report on Wednesday, May 27th. Citigroup increased their target price on shares of Open Text from $25.00 to $28.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Finally, Scotiabank cut their price target on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating for the company in a report on Friday, August 7th. Three analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $32.46.

About Open Text

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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