Bank of Nova Scotia Boosts Stock Position 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 lifted its position in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 11.9% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,897,979 shares of the software maker's stock after purchasing an additional 202,494 shares during the quarter. Bank of Nova Scotia owned 0.73% of Open Text worth $47,910,000 at the end of the most recent reporting period.

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

Wall Street Analyst Weigh In

A number of brokerages recently commented on OTEX. National Bankshares lowered their price objective on Open Text from $38.00 to $34.00 and set a "sector perform" rating for the company in a research report on Friday, April 25th. Jefferies Financial Group restated a "buy" rating on shares of Open Text in a research report on Wednesday, July 9th. Scotiabank decreased their target price on Open Text from $35.00 to $30.00 and set a "sector perform" rating for the company in a research report on Monday, April 28th. Barclays decreased their target price 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. Finally, Royal Bank Of Canada cut 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. 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. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $32.00.

Open Text Stock Down 0.3%

Shares of NASDAQ OTEX traded down $0.09 during midday trading on Tuesday, hitting $28.88. 107,786 shares of the stock traded hands, compared to its average volume of 1,221,932. The company has a market cap of $7.36 billion, a PE ratio of 11.80 and a beta of 1.12. Open Text Corporation has a one year low of $22.79 and a one year high of $34.20. The business has a 50 day moving average price of $28.85 and a two-hundred day moving average price of $27.57. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.86 and a current ratio of 0.86.

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.