Open Text Corporation $OTEX Holdings Raised by Twin Tree Management LP

Key Points

• Twin Tree Management LP increased its stake in Open Text Corporation by 51.3%, raising its holdings to 83,305 shares valued at approximately $2.43 million.
• Open Text recently reported earnings of $0.97 per share for the last quarter, exceeding analyst expectations, but noted a 3.8% decline in revenue year-over-year.
• The company raised its quarterly dividend from $0.26 to $0.275 per share, yielding approximately 2.8%, with a payout ratio of 66.67%.

Twin Tree Management LP grew its stake in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 51.3% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 83,305 shares of the software maker's stock after purchasing an additional 28,244 shares during the period. Twin Tree Management LP's holdings in Open Text were worth $2,433,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of OTEX. Cromwell Holdings LLC lifted its stake in Open Text by 27.4% in the 2nd quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker's stock worth $48,000 after acquiring an additional 352 shares in the last quarter. Headlands Technologies LLC lifted its stake in Open Text by 360.6% in the 1st quarter. Headlands Technologies LLC now owns 2,888 shares of the software maker's stock worth $73,000 after acquiring an additional 2,261 shares in the last quarter. United Services Automobile Association purchased a new stake in Open Text in the 1st quarter worth about $213,000. Ridgewood Investments LLC lifted its stake in Open Text by 593.1% in the 1st quarter. Ridgewood Investments LLC now owns 8,664 shares of the software maker's stock worth $219,000 after acquiring an additional 7,414 shares in the last quarter. Finally, Callan Family Office LLC purchased a new stake in Open Text in the 2nd quarter worth about $250,000. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Stock Performance

Shares of NASDAQ OTEX opened at $38.80 on Friday. The company has a debt-to-equity ratio of 1.61, a quick ratio of 0.80 and a current ratio of 0.80. The firm has a market cap of $9.81 billion, a price-to-earnings ratio of 23.52 and a beta of 1.17. The business's 50-day simple moving average is $35.14 and its 200-day simple moving average is $30.29. Open Text Corporation has a 52 week low of $22.79 and a 52 week high of $39.90.

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

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 19th. Stockholders of record on Friday, September 5th were issued a dividend of $0.275 per share. The ex-dividend date of this dividend was Friday, September 5th. This represents a $1.10 dividend on an annualized basis and a dividend yield of 2.8%. This is a positive change from Open Text's previous quarterly dividend of $0.26. Open Text's payout ratio is currently 66.67%.

Analysts Set New Price Targets

OTEX has been the subject of several research analyst reports. Scotiabank raised Open Text from a "sector perform" rating to an "outperform" rating and increased their price objective for the stock from $35.00 to $50.00 in a research note on Wednesday, September 24th. National Bankshares raised Open Text from a "sector perform" rating to an "outperform" rating and upped their target price for the stock from $34.00 to $45.00 in a research report on Monday, September 15th. Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Royal Bank Of Canada upped their target price on Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a research report on Tuesday, September 2nd. Finally, TD Cowen reaffirmed a "hold" rating and issued a $40.00 target price on shares of Open Text in a research report on Friday, October 3rd. Four research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Open Text has a consensus rating of "Hold" and a consensus target price of $37.25.

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.

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