Open Text Corporation $OTEX Shares Acquired by First Trust Advisors LP

Key Points

• First Trust Advisors increased its stake in Open Text by 9.3% in Q3, buying 765,366 shares to hold 9,027,450 shares (about 3.58% of the company) valued at roughly $337.4 million, while other institutions (e.g., Dimensional) also meaningfully boosted positions; overall institutional ownership is about 70.37%.
• Open Text beat quarterly estimates with $1.13 EPS versus $1.04 expected and reported $1.32 billion in revenue (down 0.6% YoY), and the stock trades at a market cap of $6.41 billion with a P/E of 15.04.
• The company declared a quarterly dividend of $0.275 (annualized $1.10) for a 4.3% yield (ex-dividend March 6), while analyst sentiment is mostly "Hold" with an average target of $35.75 after several firms cut price targets.

First Trust Advisors LP increased its holdings in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 9.3% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 9,027,450 shares of the software maker's stock after acquiring an additional 765,366 shares during the quarter. First Trust Advisors LP owned about 3.58% of Open Text worth $337,445,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Dimensional Fund Advisors LP increased its holdings in shares of Open Text by 48.9% in the third quarter. Dimensional Fund Advisors LP now owns 2,592,578 shares of the software maker's stock valued at $96,914,000 after purchasing an additional 851,303 shares during the last quarter. AustralianSuper Pty Ltd boosted its stake in Open Text by 0.4% during the third quarter. AustralianSuper Pty Ltd now owns 465,613 shares of the software maker's stock worth $17,400,000 after buying an additional 1,731 shares during the last quarter. Picton Mahoney Asset Management purchased a new stake in Open Text in the 3rd quarter valued at $11,668,000. Victory Capital Management Inc. acquired a new stake in shares of Open Text in the 3rd quarter worth $663,000. Finally, Spark Investment Management LLC acquired a new stake in shares of Open Text in the 3rd quarter worth $1,495,000. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Open Text Stock Performance

Shares of OTEX opened at $25.56 on Friday. Open Text Corporation has a 1 year low of $22.44 and a 1 year high of $39.90. The stock has a market capitalization of $6.41 billion, a PE ratio of 15.04 and a beta of 1.08. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.94 and a current ratio of 0.94. The stock has a 50-day simple moving average of $27.62 and a 200-day simple moving average of $32.70.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its earnings results on Thursday, February 5th. The software maker reported $1.13 earnings per share for the quarter, topping analysts' consensus estimates of $1.04 by $0.09. Open Text had a net margin of 8.42% and a return on equity of 23.60%. The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same period in the prior year, the firm earned $1.11 earnings per share. The business's quarterly revenue was down .6% compared to the same quarter last year. On average, analysts predict that Open Text Corporation will post 3.45 earnings per share for the current fiscal year.

Open Text Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, March 6th will be given a $0.275 dividend. The ex-dividend date of this dividend is Friday, March 6th. This represents a $1.10 dividend on an annualized basis and a dividend yield of 4.3%. Open Text's dividend payout ratio is currently 64.71%.

Analyst Ratings Changes

OTEX has been the topic of several recent research reports. Canadian Imperial Bank of Commerce lowered their price target on shares of Open Text from $40.00 to $37.00 and set a "neutral" rating on the stock in a research report on Friday, January 16th. Barclays reduced their target price on shares of Open Text from $39.00 to $30.00 and set an "equal weight" rating on the stock in a research note on Friday, February 6th. Weiss Ratings reissued a "hold (c+)" rating on shares of Open Text in a research note on Monday, December 29th. Citigroup cut their price target on shares of Open Text from $36.00 to $26.00 and set a "neutral" rating for the company in a report on Friday, February 6th. Finally, UBS Group set a $26.00 price target on shares of Open Text in a research report on Friday, February 6th. Three equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $35.75.

About Open Text

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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