Hsbc Holdings PLC Sells 60,350 Shares of Open Text Corporation $OTEX

Key Points

• Hsbc Holdings PLC reduced its stake in Open Text Corporation by 7.9%, now holding approximately 0.27% of the company's stock valued at around $17.73 million.
• Open Text recently announced a quarterly dividend increase from $0.26 to $0.275, with a dividend yield of 3.4% and an ex-dividend date of September 5th.
• Analysts have mixed ratings for Open Text, with a consensus rating of "Hold" and a price target of $32.60, reflecting a mixture of buy, hold, and sell recommendations.

Hsbc Holdings PLC lessened its stake in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 7.9% in the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 702,348 shares of the software maker's stock after selling 60,350 shares during the period. Hsbc Holdings PLC owned about 0.27% of Open Text worth $17,726,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in OTEX. Value Partners Investments Inc. increased its holdings in Open Text by 1,162.1% during the first quarter. Value Partners Investments Inc. now owns 2,333,539 shares of the software maker's stock worth $58,955,000 after buying an additional 2,148,639 shares during the last quarter. JARISLOWSKY FRASER Ltd increased its holdings in Open Text by 11.8% during the fourth quarter. JARISLOWSKY FRASER Ltd now owns 18,547,256 shares of the software maker's stock worth $522,879,000 after buying an additional 1,957,695 shares during the last quarter. Criteria Caixa S.A.U. purchased a new stake in Open Text during the fourth quarter worth about $32,890,000. Bank of America Corp DE increased its stake in shares of Open Text by 91.3% in the fourth quarter. Bank of America Corp DE now owns 1,602,313 shares of the software maker's stock worth $45,378,000 after purchasing an additional 764,734 shares in the last quarter. Finally, Vanguard Group Inc. increased its stake 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 purchasing an additional 639,514 shares in the last quarter. Hedge funds and other institutional investors own 70.37% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Wall Street Zen upgraded shares of Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Jefferies Financial Group downgraded shares of Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price for the company. 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. Barclays reiterated a "positive" rating on shares of Open Text in a research note on Friday, August 8th. Finally, Citigroup lifted their target price on shares of Open Text from $29.00 to $43.00 and gave the stock a "negative" rating in a research note on Friday, May 2nd. Two research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Open Text presently has an average rating of "Hold" and an average price target of $32.60.

Open Text Price Performance

NASDAQ:OTEX traded down $0.02 during mid-day trading on Friday, hitting $32.96. 300,418 shares of the stock traded hands, compared to its average volume of 1,276,201. The business's 50-day moving average price is $29.87 and its 200 day moving average price is $27.86. The company has a market cap of $8.38 billion, a PE ratio of 19.96 and a beta of 1.12. Open Text Corporation has a 12-month low of $22.79 and a 12-month high of $34.20. 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 (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.11. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same period in the previous year, the business posted $0.98 earnings per share. Open Text's revenue for the quarter was down 3.8% on a year-over-year basis. On average, analysts expect that Open Text Corporation will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

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

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.