Bank of Nova Scotia Raises Stake in Open Text Corporation (NASDAQ:OTEX)

Key Points

• Bank of Nova Scotia increased its stake in Open Text Corporation by 11.9%, holding approximately $47.91 million worth of shares as of the latest SEC filing.
• Brokerages have varied opinions on Open Text, with Jefferies maintaining a "buy" rating, while other firms have revised target prices lower, reflecting market uncertainty.
• Open Text reported $0.82 earnings per share for the last quarter, exceeding estimates, but its revenue declined by 13.3% year-over-year.

Bank of Nova Scotia increased its holdings in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 11.9% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,897,979 shares of the software maker's stock after acquiring an additional 202,494 shares during the quarter. Bank of Nova Scotia owned about 0.73% of Open Text worth $47,910,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Versant Capital Management Inc acquired a new position in Open Text during the first quarter valued at approximately $26,000. Parallel Advisors LLC lifted its holdings in Open Text by 219.3% in the 1st quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock valued at $49,000 after acquiring an additional 1,331 shares during the last quarter. Aquatic Capital Management LLC acquired a new stake in Open Text during the 4th quarter worth about $60,000. Natixis increased its holdings in shares of Open Text by 1,075.1% in the 4th quarter. Natixis now owns 3,161 shares of the software maker's stock valued at $90,000 after purchasing an additional 2,892 shares during the period. Finally, CIBC Private Wealth Group LLC acquired a new position in Open Text in the fourth quarter worth approximately $105,000. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Stock Performance

OTEX stock traded down $0.46 on Thursday, reaching $28.49. 238,440 shares of the company were exchanged, compared to its average volume of 1,223,765. The stock's fifty day moving average price is $28.89 and its 200 day moving average price is $27.59. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.86 and a quick ratio of 0.86. Open Text Corporation has a 12 month low of $22.79 and a 12 month high of $34.20. The firm has a market capitalization of $7.26 billion, a PE ratio of 11.60 and a beta of 1.12.

Analyst Ratings Changes

OTEX has been the topic of a number of recent analyst reports. CIBC reduced their target price on Open Text from $33.00 to $31.00 and set a "neutral" rating on the stock in a report on Friday, May 2nd. Barclays dropped their price objective on Open Text from $36.00 to $29.00 and set an "equal weight" rating for the company in a research report on Monday, April 21st. UBS Group dropped their price target on Open Text from $32.00 to $28.00 and set a "neutral" rating on the stock in a report on Friday, May 2nd. Jefferies Financial Group restated a "buy" rating on shares of Open Text in a report on Wednesday, July 9th. Finally, Wall Street Zen upgraded Open Text from a "hold" rating to a "buy" rating in a research note on Tuesday, May 13th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus 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.