Gulf International Bank UK Ltd Grows Stock Position in Open Text Corporation $OTEX

Key Points

• Gulf International Bank UK Ltd significantly increased its stake in Open Text Corporation by 3,434.8%, acquiring a total of 15,765 shares worth approximately $398,000.
• Open Text recently declared a quarterly dividend of $0.275 per share, increasing from its previous dividend of $0.26, representing an annualized yield of 3.5%.
• Despite beating earnings expectations with $0.97 EPS for the quarter, Open Text's revenue was down 3.8% year-over-year, indicating potential challenges ahead.

Gulf International Bank UK Ltd raised its stake in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 3,434.8% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 15,765 shares of the software maker's stock after purchasing an additional 15,319 shares during the period. Gulf International Bank UK Ltd's holdings in Open Text were worth $398,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also made changes to their positions in the company. Versant Capital Management Inc acquired a new position in Open Text during the 1st quarter worth approximately $26,000. Parallel Advisors LLC raised its stake in Open Text by 219.3% in the first quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock valued at $49,000 after buying an additional 1,331 shares in the last quarter. Aquatic Capital Management LLC purchased a new stake in Open Text during the 4th quarter worth about $60,000. Headlands Technologies LLC raised its position in shares of Open Text by 360.6% during the 1st quarter. Headlands Technologies LLC now owns 2,888 shares of the software maker's stock worth $73,000 after acquiring an additional 2,261 shares in the last quarter. Finally, Natixis boosted its holdings in Open Text by 1,075.1% in the fourth quarter. Natixis now owns 3,161 shares of the software maker's stock valued at $90,000 after purchasing an additional 2,892 shares in the last quarter. Hedge funds and other institutional investors own 70.37% of the company's stock.

Open Text Price Performance

Shares of NASDAQ:OTEX opened at $31.69 on Monday. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.61. The company has a 50-day moving average price of $29.19 and a 200 day moving average price of $27.65. Open Text Corporation has a 52 week low of $22.79 and a 52 week high of $34.20. The company has a market cap of $8.06 billion, a P/E ratio of 19.21 and a beta of 1.12.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its quarterly earnings results 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 business had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.30 billion. Open Text had a return on equity of 22.52% and a net margin of 8.43%. The company's quarterly revenue was down 3.8% compared to the same quarter last year. During the same period last year, the firm earned $0.98 EPS. Research analysts predict that Open Text Corporation will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, September 5th will be paid a dividend of $0.275 per share. 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 3.5%. Open Text's dividend payout ratio is currently 63.64%.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on OTEX shares. National Bankshares cut their target price on Open Text from $38.00 to $34.00 and set a "sector perform" rating on the stock in a research report on Friday, April 25th. Jefferies Financial Group cut shares of Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price on the stock. in a report on Tuesday, August 12th. Royal Bank Of Canada decreased their price target on shares of Open Text from $31.00 to $30.00 and set a "sector perform" rating for the company in a research note on Tuesday, April 22nd. BMO Capital Markets dropped their price objective on shares of Open Text from $30.00 to $28.00 and set a "market perform" rating on the stock in a research note on Friday, May 2nd. Finally, UBS Group reduced their target price on shares of Open Text from $32.00 to $28.00 and set a "neutral" rating for the company in a report on Friday, May 2nd. One analyst has rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the stock. According to MarketBeat.com, Open Text has an average rating of "Hold" and an average price target of $32.60.

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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