DekaBank Deutsche Girozentrale Lowers Holdings in Open Text Corporation $OTEX

Key Points

• DekaBank Deutsche Girozentrale reduced its holdings in Open Text Corporation (OTEX) by 14.4% during the 2nd quarter, owning 91,783 shares post-sale, valued at $2.64 million.
• Analyst ratings for Open Text show mixed sentiments, with three analysts rating it a "Buy", nine a "Hold", and one a "Sell"; the average price target stands at $38.08.
• Open Text recently increased its quarterly dividend to $0.275 per share, enhancing its annualized dividend yield to 2.8%.

DekaBank Deutsche Girozentrale trimmed its holdings in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 14.4% during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 91,783 shares of the software maker's stock after selling 15,498 shares during the period. DekaBank Deutsche Girozentrale's holdings in Open Text were worth $2,641,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently made changes to their positions in OTEX. Vanguard Group Inc. lifted its position in shares of Open Text by 6.1% in the first quarter. Vanguard Group Inc. now owns 11,151,279 shares of the software maker's stock worth $281,447,000 after buying an additional 639,514 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Open Text by 75.8% during the first quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker's stock valued at $36,307,000 after buying an additional 619,527 shares during the last quarter. Letko Brosseau & Associates Inc. grew its stake in shares of Open Text by 11.8% during the first quarter. Letko Brosseau & Associates Inc. now owns 4,860,805 shares of the software maker's stock valued at $122,664,000 after buying an additional 512,050 shares during the last quarter. Mackenzie Financial Corp grew its stake in Open Text by 9.2% in the first quarter. Mackenzie Financial Corp now owns 5,876,003 shares of the software maker's stock worth $148,299,000 after purchasing an additional 492,897 shares in the last quarter. Finally, Canada Pension Plan Investment Board grew its stake in Open Text by 34.9% in the first quarter. Canada Pension Plan Investment Board now owns 1,247,467 shares of the software maker's stock worth $31,490,000 after purchasing an additional 323,029 shares in the last quarter. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on OTEX shares. CIBC reissued a "neutral" rating on shares of Open Text in a research report on Monday, August 11th. National Bank Financial raised Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 price objective for the company in a research report on Monday, September 15th. Wall Street Zen upgraded Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. TD Securities lowered Open Text from a "buy" rating to a "hold" rating and raised their target price for the stock from $35.00 to $40.00 in a research note on Friday, October 3rd. Finally, National Bankshares set a $45.00 target price on Open Text and gave the stock an "outperform" rating in a research note on Thursday. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $38.08.

Open Text Price Performance

Shares of Open Text stock opened at $39.35 on Friday. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.61. Open Text Corporation has a twelve month low of $22.79 and a twelve month high of $39.90. The firm has a market cap of $9.91 billion, a PE ratio of 23.85 and a beta of 1.17. The business has a 50-day moving average price of $36.16 and a 200 day moving average price of $30.95.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its quarterly earnings data on Thursday, August 7th. The software maker reported $0.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.11. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The company had revenue of $1.32 billion for the quarter, compared to analysts' expectations of $1.30 billion. During the same period in the previous year, the firm posted $0.98 EPS. Open Text's revenue was down 3.8% compared to the same quarter last year. Sell-side analysts predict that Open Text Corporation will post 3.45 earnings per share for the current fiscal year.

Open Text Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 19th. Investors of record on Friday, September 5th were issued a $0.275 dividend. This is a boost from Open Text's previous quarterly dividend of $0.26. This represents a $1.10 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date was Friday, September 5th. Open Text's payout ratio is currently 66.67%.

About Open Text

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.

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