Evolve Private Wealth LLC Makes New $1.04 Million Investment in Open Text Corporation $OTEX

Key Points

• Evolve Private Wealth initiated a roughly $1.04 million position in Open Text, purchasing 46,777 shares during the second quarter. Institutional investors collectively own 70.37% of the company.
• Analysts have a consensus “Hold” rating and an average price target of $32.46, despite several recent target reductions and downgrades.
• Open Text exceeded quarterly expectations with $1.23 earnings per share and $1.33 billion in revenue, while maintaining a quarterly dividend of $0.28 per share, equivalent to a 4.5% annualized yield.

Evolve Private Wealth LLC purchased a new position in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 46,777 shares of the software maker's stock, valued at approximately $1,036,000.

Several other hedge funds have also recently modified their holdings of OTEX. Royal Bank of Canada increased its holdings 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 worth $218,920,000 after acquiring an additional 965,385 shares in the last quarter. Bank of America Corp DE raised its holdings in Open Text by 99.1% during the first quarter. Bank of America Corp DE now owns 1,349,545 shares of the software maker's stock valued at $30,014,000 after acquiring an additional 671,572 shares during the period. Brandes Investment Partners LP boosted its stake in shares of Open Text by 1.2% in the fourth quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker's stock worth $296,679,000 after acquiring an additional 106,766 shares during the period. Sei Investments Co. lifted its holdings in Open Text by 47.3% in the 1st quarter. Sei Investments Co. now owns 255,601 shares of the software maker's stock worth $5,684,000 after purchasing an additional 82,049 shares in the last quarter. Finally, Quantinno Capital Management LP raised its position in shares of Open Text by 109.8% during the first quarter. Quantinno Capital Management LP now owns 109,717 shares of the software maker's stock valued at $2,440,000 after buying an additional 57,432 shares during the last quarter. Hedge funds and other institutional investors own 70.37% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. Wall Street Zen lowered Open Text from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Scotiabank dropped 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. Barclays raised their price target on Open Text from $25.00 to $27.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Citigroup upped their price objective on Open Text from $25.00 to $28.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Finally, Raymond James Financial downgraded Open Text from an "outperform" rating to a "market perform" rating and lowered their target price for the company from $35.00 to $29.50 in a research report on Thursday, August 6th. Three equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, Open Text presently has a consensus rating of "Hold" and a consensus price target of $32.46.

Open Text Price Performance

NASDAQ:OTEX opened at $24.67 on Monday. The firm has a market capitalization of $5.97 billion, a price-to-earnings ratio of 9.56 and a beta of 1.03. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.81 and a quick ratio of 0.81. The business has a 50 day simple moving average of $23.31 and a 200-day simple moving average of $23.34. Open Text Corporation has a 1 year low of $19.77 and a 1 year high of $39.90.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its quarterly earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.21. The company had revenue of $1.33 billion for 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%.Open Text's quarterly revenue was up 2.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.97 EPS. Equities analysts forecast that Open Text Corporation will post 3.72 EPS for the current year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be paid a dividend of $0.28 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.5%. This is an increase from Open Text's previous quarterly dividend of $0.28. Open Text's dividend payout ratio is 42.64%.

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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