Open Text Corporation $OTEX Shares Acquired by Tidal Investments LLC

Key Points

• Tidal Investments increased its Open Text position by 797% in the second quarter, purchasing 267,440 additional shares for a total stake of 300,997 shares worth approximately $6.7 million. Institutional investors collectively own 70.37% of the company.
• Open Text reported quarterly adjusted earnings of $1.23 per share and revenue of $1.33 billion, beating analyst expectations; revenue rose 2.9% year over year.
• The stock traded at $23.06, while analysts maintained a generally cautious outlook with an average “Hold” rating and a $32.46 price target. The company’s quarterly dividend remains $0.28 per share, equivalent to a 4.9% annualized yield.

Tidal Investments LLC lifted its position in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 797.0% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 300,997 shares of the software maker's stock after buying an additional 267,440 shares during the quarter. Tidal Investments LLC owned approximately 0.12% of Open Text worth $6,667,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of OTEX. Goldman Sachs Group Inc. grew its position in Open Text by 75.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker's stock valued at $36,307,000 after acquiring an additional 619,527 shares in the last quarter. United Services Automobile Association acquired a new stake in shares of Open Text during the first quarter worth about $213,000. EverSource Wealth Advisors LLC boosted its stake in shares of Open Text by 39.7% in the second quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker's stock valued at $59,000 after purchasing an additional 570 shares during the period. Cerity Partners LLC boosted its stake in shares of Open Text by 3.4% in the second quarter. Cerity Partners LLC now owns 49,003 shares of the software maker's stock valued at $1,431,000 after purchasing an additional 1,612 shares during the period. Finally, Qube Research & Technologies Ltd grew its holdings in shares of Open Text by 16.8% in the second quarter. Qube Research & Technologies Ltd now owns 46,500 shares of the software maker's stock valued at $1,360,000 after purchasing an additional 6,700 shares in the last quarter. Institutional investors and hedge funds own 70.37% of the company's stock.

Open Text Stock Up 2.0%

Shares of NASDAQ:OTEX opened at $23.06 on Friday. Open Text Corporation has a fifty-two week low of $19.77 and a fifty-two week high of $39.90. The firm's 50 day moving average price is $24.00 and its 200 day moving average price is $23.30. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.43. The stock has a market cap of $5.58 billion, a price-to-earnings ratio of 8.94 and a beta of 1.02.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its quarterly earnings results on Thursday, August 6th. The software maker reported $1.23 EPS for the quarter, topping the consensus estimate of $1.02 by $0.21. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The company had revenue of $1.33 billion during the quarter, compared to analysts' expectations of $1.29 billion. During the same quarter in the previous year, the business posted $0.97 EPS. The firm's revenue was up 2.9% on a year-over-year basis. As a group, equities research analysts predict that Open Text Corporation will post 3.72 earnings per share for the current fiscal year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be paid a dividend of $0.28 per share. The ex-dividend date is Friday, September 4th. This is an increase from Open Text's previous quarterly dividend of $0.28. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.9%. Open Text's payout ratio is presently 43.41%.

Wall Street Analyst Weigh In

OTEX has been the topic of several recent research reports. Raymond James Financial downgraded shares of Open Text from an "outperform" rating to a "market perform" rating and cut their target price for the stock from $35.00 to $29.50 in a research note on Thursday, August 6th. Weiss Ratings restated a "hold (c-)" rating on shares of Open Text in a research note on Wednesday, June 24th. Zacks Research cut Open Text from a "hold" rating to a "strong sell" rating in a research note on Friday, August 21st. Wall Street Zen upgraded Open Text from a "hold" rating to a "buy" rating in a research note on Saturday, September 5th. Finally, Citigroup lifted their target price on Open Text from $25.00 to $28.00 and gave the company a "neutral" rating in a report on Friday, August 7th. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $32.46.

Open Text Profile

Open Text Corporation NASDAQ: OTEX is a Canadian software company that develops enterprise information management solutions. Its products help organizations capture, manage, secure, govern and exchange business information across content, processes and communications.

The company offers software and services through areas that include content management, business process automation, customer experience management, business-to-business integration, data protection and cybersecurity. OpenText's portfolio supports cloud and on-premises deployments and is designed for use by businesses, governments and other large organizations.

Founded in 1991 and headquartered in Waterloo, Ontario, OpenText serves customers internationally across a broad range of industries and geographies.

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