Federation des caisses Desjardins du Quebec Cuts Holdings in Open Text Corporation $OTEX

Key Points

• The Federation des caisses Desjardins du Quebec sold 86,340 shares of Open Text Corporation, reducing its holding by 6.5%, now owning approximately 1,238,882 shares valued at $31 million.
• Open Text reported quarterly earnings of $0.97 per share, surpassing expectations, and declared a dividend increase to $0.275 per share, resulting in an annualized yield of 3.3%.
• Wall Street analysts have varying ratings on Open Text, with a consensus rating of "Hold" and an average price target of $33.10, influenced by recent upgrades from major banks.

Federation des caisses Desjardins du Quebec decreased its position in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 6.5% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 1,238,882 shares of the software maker's stock after selling 86,340 shares during the period. Federation des caisses Desjardins du Quebec owned approximately 0.48% of Open Text worth $31,007,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in OTEX. Vident Advisory LLC lifted its position in Open Text by 6.6% in the 1st quarter. Vident Advisory LLC now owns 11,681 shares of the software maker's stock worth $295,000 after buying an additional 722 shares in the last quarter. Versant Capital Management Inc acquired a new stake in Open Text in the 1st quarter worth $26,000. Parallel Advisors LLC boosted its position in shares of Open Text by 219.3% during the 1st quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock valued at $49,000 after acquiring an additional 1,331 shares in the last quarter. Stifel Financial Corp boosted its position in shares of Open Text by 2.2% during the 4th quarter. Stifel Financial Corp now owns 68,511 shares of the software maker's stock valued at $1,940,000 after acquiring an additional 1,453 shares in the last quarter. Finally, Raymond James Financial Inc. boosted its position in shares of Open Text by 1.4% during the 1st quarter. Raymond James Financial Inc. now owns 127,887 shares of the software maker's stock valued at $3,230,000 after acquiring an additional 1,757 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors.

Open Text Price Performance

NASDAQ:OTEX traded down $0.24 on Friday, hitting $33.23. The company had a trading volume of 1,839,245 shares, compared to its average volume of 1,785,200. The firm has a 50 day moving average of $30.43 and a two-hundred day moving average of $28.06. The stock has a market capitalization of $8.45 billion, a price-to-earnings ratio of 20.14 and a beta of 1.16. Open Text Corporation has a 52 week low of $22.79 and a 52 week high of $34.20. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.61.

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 for the quarter, topping the consensus estimate of $0.86 by $0.11. The company had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.30 billion. Open Text had a net margin of 8.43% and a return on equity of 22.52%. Open Text's revenue for the quarter was down 3.8% compared to the same quarter last year. During the same period in the prior year, the company posted $0.98 earnings per share. On average, research analysts anticipate that Open Text Corporation will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

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

Wall Street Analyst Weigh In

OTEX has been the subject of several analyst reports. Scotiabank lifted their price target on shares of Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a report on Tuesday, August 12th. Barclays reaffirmed a "positive" rating on shares of Open Text in a research note on Friday, August 8th. CIBC reiterated a "neutral" rating on shares of Open Text in a report on Monday, August 11th. Royal Bank Of Canada raised their price objective on shares of Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a report on Tuesday, September 2nd. Finally, Wall Street Zen upgraded shares of Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Two research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Open Text currently has an average rating of "Hold" and a consensus target price of $33.10.

Open Text Company 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.