Letko Brosseau & Associates Inc. Has $122.66 Million Stake in Open Text Corporation (NASDAQ:OTEX)

Key Points

• Letko Brosseau & Associates Inc. increased its holdings in Open Text Corporation by 11.8%, owning nearly 4.86 million shares worth approximately $122.66 million, making it the fund's 10th largest position.
• Open Text reported a quarterly earnings per share of $0.82, which was higher than analysts' expectations of $0.81, despite a 13.3% year-over-year decline in revenue.
• The company's stock has seen a price fluctuation with a 52-week range between $22.79 and $34.20, and it currently has a market capitalization of $7.76 billion.

Letko Brosseau & Associates Inc. lifted its holdings in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 11.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,860,805 shares of the software maker's stock after acquiring an additional 512,050 shares during the period. Open Text makes up 2.6% of Letko Brosseau & Associates Inc.'s portfolio, making the stock its 10th biggest position. Letko Brosseau & Associates Inc. owned about 1.87% of Open Text worth $122,664,000 as of its most recent SEC filing.

Other institutional investors have also made changes to their positions in the company. Parallel Advisors LLC boosted its position in Open Text by 219.3% during the 1st quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock valued at $49,000 after purchasing an additional 1,331 shares during the period. Allspring Global Investments Holdings LLC increased its position in Open Text by 12.7% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 187,565 shares of the software maker's stock valued at $4,735,000 after acquiring an additional 21,089 shares during the period. Oppenheimer Asset Management Inc. acquired a new stake in Open Text in the 1st quarter valued at approximately $323,000. Two Sigma Investments LP increased its position in Open Text by 483.2% in the 4th quarter. Two Sigma Investments LP now owns 72,906 shares of the software maker's stock valued at $2,065,000 after acquiring an additional 60,406 shares during the period. Finally, Raymond James Financial Inc. acquired a new stake in Open Text in the 4th quarter valued at approximately $3,572,000. 70.37% of the stock is owned by institutional investors and hedge funds.

Open Text Stock Performance

Open Text stock traded down $1.05 during trading hours on Friday, reaching $28.38. 1,072,739 shares of the company were exchanged, compared to its average volume of 1,034,939. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 1.54. The stock has a 50-day moving average of $28.85 and a 200 day moving average of $27.57. The firm has a market cap of $7.23 billion, a price-to-earnings ratio of 11.58 and a beta of 1.12. Open Text Corporation has a 12 month low of $22.79 and a 12 month high of $34.20.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings results on Wednesday, April 30th. The software maker reported $0.82 EPS for the quarter, topping the consensus estimate of $0.81 by $0.01. The company had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.28 billion. Open Text had a return on equity of 22.49% and a net margin of 12.55%. The company's revenue for the quarter was down 13.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.94 EPS. As a group, research analysts anticipate that Open Text Corporation will post 3.45 earnings per share for the current year.

Analysts Set New Price Targets

OTEX has been the topic of several analyst reports. Scotiabank lowered their target price on Open Text from $35.00 to $30.00 and set a "sector perform" rating on the stock in a research report on Monday, April 28th. Barclays lowered 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 report on Monday, April 21st. Royal Bank Of Canada lowered their price objective on shares of Open Text from $31.00 to $30.00 and set a "sector perform" rating on the stock in a research report on Tuesday, April 22nd. UBS Group cut their price objective on shares of Open Text from $32.00 to $28.00 and set a "neutral" rating on the stock in a research report on Friday, May 2nd. Finally, Citigroup raised their price objective on shares of Open Text from $29.00 to $43.00 and gave the company a "negative" rating in a research report on Friday, May 2nd. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the stock. According to MarketBeat.com, Open Text has an average rating of "Hold" and a consensus target price of $32.00.

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.