Royal Bank of Canada Cuts Stake in Open Text Co. (NASDAQ:OTEX)

Royal Bank of Canada cut its stake in Open Text Co. (NASDAQ:OTEX - Free Report) TSE: OTC by 33.4% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 7,114,395 shares of the software maker's stock after selling 3,563,047 shares during the period. Royal Bank of Canada owned about 2.70% of Open Text worth $201,480,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. IFP Advisors Inc lifted its position in Open Text by 103.8% in the 4th quarter. IFP Advisors Inc now owns 1,011 shares of the software maker's stock worth $29,000 after buying an additional 515 shares during the last quarter. Blue Trust Inc. grew its holdings in shares of Open Text by 40.8% during the 4th quarter. Blue Trust Inc. now owns 1,373 shares of the software maker's stock valued at $39,000 after purchasing an additional 398 shares during the last quarter. Aquatic Capital Management LLC bought a new stake in Open Text in the fourth quarter worth $60,000. Generali Asset Management SPA SGR purchased a new stake in Open Text during the fourth quarter valued at about $62,000. Finally, Allworth Financial LP grew its stake in shares of Open Text by 20.7% during the fourth quarter. Allworth Financial LP now owns 2,564 shares of the software maker's stock valued at $73,000 after buying an additional 439 shares during the last quarter. Institutional investors own 70.37% of the company's stock.

Open Text Stock Performance

Shares of Open Text stock traded down $0.22 during trading hours on Friday, reaching $27.91. 193,482 shares of the stock traded hands, compared to its average volume of 1,139,906. Open Text Co. has a one year low of $22.79 and a one year high of $34.20. The firm has a market capitalization of $7.23 billion, a price-to-earnings ratio of 11.35 and a beta of 1.15. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 1.50. The company has a 50 day moving average price of $26.24 and a 200 day moving average price of $27.67.

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

Open Text Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 20th. Shareholders of record on Friday, June 6th will be given a $0.2625 dividend. This represents a $1.05 dividend on an annualized basis and a yield of 3.76%. The ex-dividend date of this dividend is Friday, June 6th. Open Text's payout ratio is 42.86%.

Analyst Ratings Changes

Several research firms recently issued reports on OTEX. UBS Group cut their target price on Open Text from $32.00 to $28.00 and set a "neutral" rating on the stock in a research note on Friday, May 2nd. Barclays dropped their price objective on shares of Open Text from $36.00 to $29.00 and set an "equal weight" rating on the stock in a research note on Monday, April 21st. National Bankshares dropped their price target on Open Text from $38.00 to $34.00 and set a "sector perform" rating on the stock in a research report on Friday, April 25th. TD Securities cut their target price on Open Text from $38.00 to $35.00 and set a "buy" rating on the stock in a research note on Sunday, February 9th. Finally, Citigroup lifted their price target on Open Text from $29.00 to $43.00 and gave the stock a "negative" rating in a research report on Friday, May 2nd. One analyst has rated the stock with a sell rating, eight have issued a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $32.30.

Open Text Company 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.