Canada Pension Plan Investment Board Grows Stake in Open Text Corporation $OTEX

Key Points

• The Canada Pension Plan Investment Board boosted its stake in Open Text Corporation by 34.9%, acquiring an additional 323,029 shares, bringing its total holdings to 1,247,467 shares valued at approximately $31.49 million.
• Open Text recently reported earnings per share of $0.97 for the last quarter, surpassing analysts' expectations, though it faced a 3.8% decline in revenue compared to the same period last year.
• The company announced an increase in its quarterly dividend to $0.275 per share, reflecting a 3.3% yield and a payout ratio of 63.64%.

Canada Pension Plan Investment Board grew its position in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 34.9% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,247,467 shares of the software maker's stock after acquiring an additional 323,029 shares during the quarter. Canada Pension Plan Investment Board owned about 0.48% of Open Text worth $31,490,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Versant Capital Management Inc bought a new position in Open Text during the first quarter valued at $26,000. Parallel Advisors LLC grew its holdings in Open Text by 219.3% during the first quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock valued at $49,000 after purchasing an additional 1,331 shares during the period. Stifel Financial Corp grew its holdings in Open Text by 2.2% during the fourth quarter. Stifel Financial Corp now owns 68,511 shares of the software maker's stock valued at $1,940,000 after purchasing an additional 1,453 shares during the period. Raymond James Financial Inc. grew its holdings in Open Text by 1.4% during the first quarter. Raymond James Financial Inc. now owns 127,887 shares of the software maker's stock valued at $3,230,000 after purchasing an additional 1,757 shares during the period. Finally, Alps Advisors Inc. grew its holdings in Open Text by 5.8% during the first quarter. Alps Advisors Inc. now owns 33,109 shares of the software maker's stock valued at $836,000 after purchasing an additional 1,807 shares during the period. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Price Performance

OTEX stock traded up $0.56 during mid-day trading on Thursday, hitting $33.47. 4,210,716 shares of the stock were exchanged, compared to its average volume of 1,306,326. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.80 and a quick ratio of 0.80. The business has a fifty day moving average price of $30.25 and a 200 day moving average price of $27.98. Open Text Corporation has a 12 month low of $22.79 and a 12 month high of $34.20. The stock has a market capitalization of $8.51 billion, a price-to-earnings ratio of 20.28 and a beta of 1.16.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its quarterly earnings data on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, beating the consensus estimate of $0.86 by $0.11. The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.30 billion. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The company's revenue was down 3.8% on a year-over-year basis. During the same period in the prior year, the company earned $0.98 EPS. On average, sell-side analysts anticipate that Open Text Corporation will post 3.45 EPS for the current year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, September 5th will be paid a $0.275 dividend. This is a boost from Open Text's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.10 dividend on an annualized basis and a dividend yield of 3.3%. Open Text's dividend payout ratio is presently 63.64%.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Barclays reissued a "positive" rating on shares of Open Text in a report on Friday, August 8th. Scotiabank boosted their price objective on Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a research note on Tuesday, August 12th. Jefferies Financial Group lowered Open Text from a "buy" rating to a "hold" rating and set a $33.00 price objective on the stock. in a research note on Tuesday, August 12th. CIBC reiterated a "neutral" rating on shares of Open Text in a research note on Monday, August 11th. Finally, Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $33.10.

Open Text Profile

Open Text Corporation provides information management software and solutions. The company offers content services, which includes content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation.