Lorne Steinberg Wealth Management Inc. Acquires 19,000 Shares of Open Text Corporation $OTEX

Key Points

• Lorne Steinberg Wealth Management Inc. increased its stake in Open Text Corporation by 12.7%, acquiring an additional 19,000 shares, bringing its total holdings to approximately 168,298 shares valued at $4.9 million.
• Open Text recently increased its quarterly dividend to $0.275 per share, up from $0.26, translating to an annualized dividend yield of 2.8%.
• The company reported earnings per share of $0.97 for the last quarter, exceeding analyst estimates, although revenue declined by 3.8% year-over-year.

Lorne Steinberg Wealth Management Inc. raised its holdings in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 12.7% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 168,298 shares of the software maker's stock after acquiring an additional 19,000 shares during the quarter. Lorne Steinberg Wealth Management Inc. owned approximately 0.07% of Open Text worth $4,921,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the business. Cromwell Holdings LLC grew its stake in shares of Open Text by 27.4% during the 2nd quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker's stock worth $48,000 after acquiring an additional 352 shares in the last quarter. Vident Advisory LLC boosted its holdings in shares of Open Text by 6.6% in the 1st quarter. Vident Advisory LLC now owns 11,681 shares of the software maker's stock valued at $295,000 after buying an additional 722 shares during the last quarter. Vest Financial LLC boosted its holdings in shares of Open Text by 8.2% in the 2nd quarter. Vest Financial LLC now owns 13,769 shares of the software maker's stock valued at $402,000 after buying an additional 1,045 shares during the last quarter. Raymond James Financial Inc. boosted its holdings in shares of Open Text by 1.4% in the 1st quarter. Raymond James Financial Inc. now owns 127,887 shares of the software maker's stock valued at $3,230,000 after buying an additional 1,757 shares during the last quarter. Finally, Alps Advisors Inc. boosted its holdings in shares of Open Text by 5.8% in the 1st quarter. Alps Advisors Inc. now owns 33,109 shares of the software maker's stock valued at $836,000 after buying an additional 1,807 shares during the last quarter. 70.37% of the stock is owned by institutional investors.

Open Text Stock Up 0.6%

OTEX opened at $39.03 on Monday. Open Text Corporation has a fifty-two week low of $22.79 and a fifty-two week high of $39.90. The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.80 and a current ratio of 0.80. The company has a market capitalization of $9.87 billion, a P/E ratio of 23.65 and a beta of 1.17. The stock has a fifty day moving average of $35.31 and a 200-day moving average of $30.45.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.11. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The company had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter last year, the firm earned $0.98 earnings per share. The company's revenue was down 3.8% on a year-over-year basis. On average, equities analysts expect that Open Text Corporation will post 3.45 EPS for the current year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 19th. Investors of record on Friday, September 5th were given a $0.275 dividend. The ex-dividend date was Friday, September 5th. This is an increase from Open Text's previous quarterly dividend of $0.26. This represents a $1.10 dividend on an annualized basis and a dividend yield of 2.8%. Open Text's dividend payout ratio (DPR) is 66.67%.

Analyst Ratings Changes

Several research firms have recently commented on OTEX. Scotiabank raised Open Text from a "sector perform" rating to an "outperform" rating and increased their price objective for the company from $35.00 to $50.00 in a report on Wednesday, September 24th. Jefferies Financial Group downgraded Open Text from a "buy" rating to a "hold" rating and set a $33.00 price objective for the company. in a report on Tuesday, August 12th. National Bank Financial raised Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 price objective for the company in a report on Monday, September 15th. Royal Bank Of Canada raised their price target on Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a report on Tuesday, September 2nd. Finally, TD Securities downgraded Open Text from a "buy" rating to a "hold" rating and raised their price target for the company from $35.00 to $40.00 in a report on Friday, October 3rd. Four investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Open Text presently has a consensus rating of "Hold" and an average target price of $37.25.

Open Text 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.

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