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 position in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 7.9% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 702,348 shares of the software maker's stock after selling 60,350 shares during the period. Hsbc Holdings PLC owned approximately 0.27% of Open Text worth $17,726,000 as of its most recent filing with the SEC.

Several other large investors have also recently bought and sold shares of the company. JARISLOWSKY FRASER Ltd increased its stake in Open Text by 11.8% in the fourth quarter. JARISLOWSKY FRASER Ltd now owns 18,547,256 shares of the software maker's stock valued at $522,879,000 after purchasing an additional 1,957,695 shares in the last quarter. Vanguard Group Inc. increased its stake in Open Text by 6.1% in the first quarter. Vanguard Group Inc. now owns 11,151,279 shares of the software maker's stock valued at $281,447,000 after purchasing an additional 639,514 shares in the last quarter. Mackenzie Financial Corp increased 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 valued at $148,299,000 after purchasing an additional 492,897 shares in the last quarter. Turtle Creek Asset Management Inc. boosted its holdings in shares of Open Text by 2.1% in the fourth quarter. Turtle Creek Asset Management Inc. now owns 5,366,703 shares of the software maker's stock valued at $151,985,000 after buying an additional 109,550 shares during the period. Finally, Letko Brosseau & Associates Inc. boosted its holdings in shares of Open Text by 11.8% in 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 period. Institutional investors own 70.37% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on OTEX. UBS Group reduced their price target 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. Citigroup upped their price target on shares of Open Text from $29.00 to $43.00 and gave the company a "negative" rating in a report on Friday, May 2nd. CIBC reiterated a "neutral" rating on shares of Open Text in a report on Monday, August 11th. Jefferies Financial Group cut shares of Open Text from a "buy" rating to a "hold" rating and set a $33.00 price target for the company. in a report on Tuesday, August 12th. Finally, Scotiabank increased their target price on shares of Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a report on Tuesday, August 12th. Two analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Open Text has a consensus rating of "Hold" and a consensus price target of $32.60.

Open Text Stock Performance

Shares of OTEX traded up $0.01 during trading hours on Tuesday, hitting $32.23. The company had a trading volume of 1,214,268 shares, compared to its average volume of 1,556,999. The firm has a market cap of $8.20 billion, a price-to-earnings ratio of 19.53 and a beta of 1.12. The business has a fifty day moving average of $29.68 and a 200-day moving average of $27.79. 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 released its quarterly earnings results on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $1.30 billion. During the same period last year, the firm earned $0.98 earnings per share. Open Text's revenue for the quarter was down 3.8% compared to the same quarter last year. Equities analysts anticipate that Open Text Corporation will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Investors of record on Friday, September 5th will be given a dividend of $0.275 per share. This is a positive change from Open Text's previous quarterly dividend of $0.26. This represents a $1.10 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date of this dividend is Friday, September 5th. Open Text's payout ratio is 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.