Nexus Investment Management ULC Lowers Position in Open Text Co. (NASDAQ:OTEX)

Nexus Investment Management ULC reduced its holdings in shares of Open Text Co. (NASDAQ:OTEX - Free Report) TSE: OTC by 71.7% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 17,890 shares of the software maker's stock after selling 45,240 shares during the quarter. Nexus Investment Management ULC's holdings in Open Text were worth $452,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. Versant Capital Management Inc purchased a new position in shares of Open Text in the 1st quarter worth about $26,000. Wellington Management Group LLP lifted its position in shares of Open Text by 31.4% during the 4th quarter. Wellington Management Group LLP now owns 263,239 shares of the software maker's stock valued at $7,446,000 after buying an additional 62,934 shares during the last quarter. Public Employees Retirement System of Ohio lifted its position in shares of Open Text by 208.2% during the 4th quarter. Public Employees Retirement System of Ohio now owns 140,726 shares of the software maker's stock valued at $3,985,000 after buying an additional 95,058 shares during the last quarter. Squarepoint Ops LLC purchased a new stake in Open Text during the fourth quarter valued at about $372,000. Finally, Twinbeech Capital LP bought a new position in Open Text during the fourth quarter worth about $360,000. 70.37% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. TD Securities dropped their price target on shares of Open Text from $38.00 to $35.00 and set a "buy" rating on the stock in a research note on Sunday, February 9th. BMO Capital Markets dropped their target price on Open Text from $30.00 to $28.00 and set a "market perform" rating on the stock in a research report on Friday, May 2nd. Scotiabank dropped their price objective on Open Text from $35.00 to $30.00 and set a "sector perform" rating on the stock in a report on Monday, April 28th. Royal Bank of Canada dropped their price objective on Open Text from $31.00 to $30.00 and set a "sector perform" rating on the stock in a report on Tuesday, April 22nd. Finally, Wall Street Zen raised shares of Open Text from a "hold" rating to a "buy" rating in a report on Tuesday, May 13th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and three have given a buy rating to the company's stock. Based on data from MarketBeat, Open Text currently has an average rating of "Hold" and an average target price of $32.30.

Open Text Stock Up 0.6%

OTEX stock traded up $0.18 during trading on Tuesday, hitting $28.26. 388,785 shares of the stock traded hands, compared to its average volume of 857,265. Open Text Co. has a 1 year low of $22.79 and a 1 year high of $34.20. The firm's 50 day moving average is $26.46 and its two-hundred day moving average is $27.58. The stock has a market cap of $7.32 billion, a price-to-earnings ratio of 11.49 and a beta of 1.15. The company has a debt-to-equity ratio of 1.50, a current ratio of 0.87 and a quick ratio of 0.87.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its quarterly earnings results on Wednesday, April 30th. The software maker reported $0.82 EPS for the quarter, beating analysts' consensus estimates of $0.81 by $0.01. Open Text had a net margin of 12.21% and a return on equity of 23.23%. The firm had revenue of $1.25 billion for the quarter, compared to analysts' expectations of $1.28 billion. During the same quarter in the prior year, the company posted $0.94 earnings per share. The business's revenue for the quarter was down 13.3% on a year-over-year basis. On average, sell-side analysts anticipate that Open Text Co. will post 3.45 EPS for the current year.

Open Text Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 20th. Investors of record on Friday, June 6th will be issued a $0.2625 dividend. This represents a $1.05 annualized dividend and a yield of 3.72%. The ex-dividend date of this dividend is Friday, June 6th. Open Text's dividend payout ratio is currently 42.86%.

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.