Legal & General Group Plc Makes New $31.32 Million Investment in Open Text Corporation $OTEX

Key Points

• Legal & General Group Plc acquired 1.42 million Open Text shares worth approximately $31.3 million, giving it a 0.58% stake. Institutional investors collectively own 70.37% of the company.
• Open Text exceeded quarterly expectations, reporting $1.23 in EPS versus the $1.02 consensus estimate and $1.33 billion in revenue, up 2.9% year over year.
• The stock opened at $25.10, while analysts maintained a consensus “Hold” rating with a $32.46 price target. Open Text’s quarterly dividend implies an annualized yield of approximately 4.5%.

Legal & General Group Plc acquired 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 & Exchange Commission. The firm acquired 1,415,546 shares of the software maker's stock, valued at approximately $31,319,000. Legal & General Group Plc owned approximately 0.58% of Open Text as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also bought and sold shares of the company. CIBC Private Wealth Group LLC purchased a new position in Open Text in the 3rd quarter worth approximately $33,000. Global Retirement Partners LLC purchased a new stake in shares of Open Text during the 2nd quarter valued at $34,000. Caitong International Asset Management Co. Ltd raised its position in shares of Open Text by 5,096.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker's stock valued at $52,000 after buying an additional 1,580 shares in the last quarter. WealthCollab LLC lifted its holdings in shares of Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock worth $48,000 after acquiring an additional 464 shares during the last quarter. Finally, Osaic Holdings Inc. grew its position in Open Text by 108.8% in the second quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker's stock worth $52,000 after acquiring an additional 937 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors.

Open Text Price Performance

Shares of NASDAQ:OTEX opened at $25.10 on Friday. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.43. The stock has a market cap of $6.08 billion, a PE ratio of 9.73 and a beta of 1.03. The company's fifty day moving average is $23.65 and its 200 day moving average is $23.38. Open Text Corporation has a 52 week low of $19.77 and a 52 week high of $39.90.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its quarterly earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.21. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The business had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same period in the prior year, the business posted $0.97 earnings per share. The company's revenue was up 2.9% on a year-over-year basis. Research analysts anticipate that Open Text Corporation will post 3.72 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 18th. Stockholders of record on Friday, September 4th will be paid a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.5%. This is a boost from Open Text's previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Friday, September 4th. Open Text's payout ratio is currently 42.64%.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Barclays raised their price target on Open Text from $25.00 to $27.00 and gave the company an "equal weight" rating in a research report on Monday, May 11th. National Bank Financial cut their price objective on Open Text from $45.00 to $33.00 and set an "outperform" rating for the company in a report on Wednesday, May 27th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Open Text in a research report on Wednesday, June 24th. Citigroup raised their price objective on Open Text from $25.00 to $28.00 and gave the company a "neutral" rating in a report on Friday, August 7th. Finally, Wall Street Zen downgraded Open Text from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Three investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $32.46.

Open Text Company Profile

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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