Open Text Corporation $OTEX Shares Acquired by Bank of America Corp DE

Key Points

• Bank of America nearly doubled its Open Text position in the first quarter, adding 671,572 shares to own 1.35 million shares valued at approximately $30 million. Institutional investors collectively hold 70.37% of OTEX.
• Open Text exceeded quarterly expectations, reporting $1.23 in EPS versus $1.02 expected and $1.33 billion in revenue, up 2.9% year over year.
• The company pays a quarterly dividend of $0.28 per share, or $1.12 annually, implying a 4.6% yield. Analysts maintain a consensus “Hold” rating with an average price target of $32.46.

Bank of America Corp DE grew its holdings in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 99.1% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 1,349,545 shares of the software maker's stock after acquiring an additional 671,572 shares during the quarter. Bank of America Corp DE owned about 0.56% of Open Text worth $30,014,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in OTEX. Goldman Sachs Group Inc. lifted its position in shares of Open Text by 75.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker's stock worth $36,307,000 after buying an additional 619,527 shares during the last quarter. United Services Automobile Association purchased a new position in shares of Open Text in the 1st quarter valued at $213,000. EverSource Wealth Advisors LLC grew its position in shares of Open Text by 39.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker's stock valued at $59,000 after buying an additional 570 shares during the last quarter. Cerity Partners LLC raised its stake in Open Text by 3.4% during the 2nd quarter. Cerity Partners LLC now owns 49,003 shares of the software maker's stock worth $1,431,000 after acquiring an additional 1,612 shares in the last quarter. Finally, Qube Research & Technologies Ltd raised its stake in Open Text by 16.8% during the 2nd quarter. Qube Research & Technologies Ltd now owns 46,500 shares of the software maker's stock worth $1,360,000 after acquiring an additional 6,700 shares in the last quarter. Hedge funds and other institutional investors own 70.37% of the company's stock.

Open Text Stock Down 1.4%

OTEX stock opened at $24.54 on Friday. The stock has a market capitalization of $5.94 billion, a PE ratio of 9.51 and a beta of 1.03. The company has a fifty day moving average of $23.08 and a 200-day moving average of $23.45. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.81 and a current ratio of 0.81. Open Text Corporation has a one year low of $19.77 and a one year high of $39.90.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.21. The business had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.29 billion. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The business's revenue was up 2.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.97 earnings per share. As a group, analysts expect that Open Text Corporation will post 4.32 EPS for the current year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be paid a dividend of $0.28 per share. This is a positive change from Open Text's previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.6%. Open Text's dividend payout ratio (DPR) is currently 43.41%.

Wall Street Analysts Forecast Growth

OTEX has been the topic of several research reports. UBS Group raised their price objective on Open Text from $25.00 to $27.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Barclays upped their target price on Open Text from $25.00 to $27.00 and gave the company an "equal weight" rating in a research report on Monday, May 11th. Royal Bank Of Canada dropped their price target on Open Text from $30.00 to $27.00 and set a "sector perform" rating on the stock in a research note on Friday, May 8th. Raymond James Financial lowered Open Text from an "outperform" rating to a "market perform" rating and cut their price target for the stock from $35.00 to $29.50 in a research report on Thursday, August 6th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Open Text in a report on Wednesday, June 24th. Three equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $32.46.

Open Text Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company's platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text's product suite includes content services, business process management, customer experience management, analytics and security products.

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