Open Text Corporation (NASDAQ:OTEX) Shares Sold by Invesco Ltd.

Key Points

• Invesco Ltd. reduced its stake in Open Text Corporation by 3.7%, now owning approximately 3.07 million shares, valued at $77.58 million.
• Open Text reported Q2 EPS of $0.97, exceeding expectations, along with revenue of $1.32 billion, despite a 3.8% decline year-over-year.
• The company has announced a quarterly dividend increase to $0.275, resulting in an annualized yield of 3.5% for shareholders, payable on September 19th.

Invesco Ltd. lowered its position in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 3.7% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 3,071,422 shares of the software maker's stock after selling 119,325 shares during the quarter. Invesco Ltd. owned approximately 1.18% of Open Text worth $77,584,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also modified their holdings of the company. Value Partners Investments Inc. increased its holdings in shares of Open Text by 1,162.1% in the 1st quarter. Value Partners Investments Inc. now owns 2,333,539 shares of the software maker's stock valued at $58,955,000 after acquiring an additional 2,148,639 shares during the period. JARISLOWSKY FRASER Ltd grew its position in Open Text by 11.8% during the 4th quarter. JARISLOWSKY FRASER Ltd now owns 18,547,256 shares of the software maker's stock worth $522,879,000 after purchasing an additional 1,957,695 shares during the last quarter. Criteria Caixa S.A.U. purchased a new position in Open Text during the 4th quarter worth $32,890,000. Bank of America Corp DE increased its stake in Open Text by 91.3% in the fourth quarter. Bank of America Corp DE now owns 1,602,313 shares of the software maker's stock valued at $45,378,000 after purchasing an additional 764,734 shares during the period. Finally, Vanguard Group Inc. raised its holdings in shares of Open Text by 6.1% in the first quarter. Vanguard Group Inc. now owns 11,151,279 shares of the software maker's stock valued at $281,447,000 after buying an additional 639,514 shares during the last quarter. 70.37% of the stock is owned by institutional investors and hedge funds.

Open Text Trading Up 2.1%

Shares of OTEX stock opened at $31.69 on Friday. The business's fifty day moving average price is $29.19 and its 200 day moving average price is $27.68. The firm has a market capitalization of $8.06 billion, a PE ratio of 19.21 and a beta of 1.12. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.80 and a quick ratio of 0.80. Open Text Corporation has a 1-year low of $22.79 and a 1-year high of $34.20.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its earnings results on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, topping the consensus estimate of $0.86 by $0.11. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The company had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.30 billion. The business's revenue was down 3.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.98 EPS. As a group, sell-side analysts forecast that Open Text Corporation will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, September 5th will be issued a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a yield of 3.5%. This is a boost from Open Text's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, September 5th. Open Text's dividend payout ratio is 63.64%.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on OTEX. CIBC reissued a "neutral" rating on shares of Open Text in a report on Monday. Scotiabank increased their price objective on Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a research report on Tuesday. Jefferies Financial Group downgraded Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price on the stock. in a research note on Tuesday. UBS Group cut their price target on Open Text from $32.00 to $28.00 and set a "neutral" rating for the company in a research note on Friday, May 2nd. Finally, National Bankshares decreased their price target on Open Text from $38.00 to $34.00 and set a "sector perform" rating for the company in a report on Friday, April 25th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, Open Text currently has an average rating of "Hold" and an average price target of $32.60.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.