Twin Tree Management LP Raises Holdings in Open Text Corporation $OTEX

Key Points

• Twin Tree Management LP significantly increased its stake in Open Text Corporation by 13,009.8%, owning 55,061 shares valued at approximately $1.39 million at the end of the last reporting period.
• Open Text announced a quarterly dividend increase to $0.275 per share, reflecting a 3.3% dividend yield and a payout ratio of 63.64%.
• The company reported a quarterly earnings per share (EPS) of $0.97, exceeding analyst expectations and generating revenue of $1.32 billion despite a 3.8% year-over-year decline in revenue.

Twin Tree Management LP raised its stake in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 13,009.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 55,061 shares of the software maker's stock after acquiring an additional 54,641 shares during the period. Twin Tree Management LP's holdings in Open Text were worth $1,391,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors also recently bought and sold shares of the company. Versant Capital Management Inc acquired a new position in Open Text in the first quarter valued at $26,000. Parallel Advisors LLC boosted its stake in shares of Open Text by 219.3% during the first quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock worth $49,000 after buying an additional 1,331 shares during the period. Aquatic Capital Management LLC acquired a new stake in shares of Open Text during the fourth quarter worth about $60,000. Headlands Technologies LLC boosted its stake in shares of Open Text by 360.6% during the first quarter. Headlands Technologies LLC now owns 2,888 shares of the software maker's stock worth $73,000 after buying an additional 2,261 shares during the period. Finally, Ridgewood Investments LLC boosted its stake in shares of Open Text by 593.1% during the first quarter. Ridgewood Investments LLC now owns 8,664 shares of the software maker's stock worth $219,000 after buying an additional 7,414 shares during the period. Institutional investors and hedge funds own 70.37% of the company's stock.

Open Text Price Performance

Open Text stock traded up $0.56 during mid-day trading on Thursday, reaching $33.47. The company had a trading volume of 4,210,716 shares, compared to its average volume of 1,306,326. Open Text Corporation has a 1 year low of $22.79 and a 1 year high of $34.20. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.80 and a quick ratio of 0.80. The company has a market capitalization of $8.51 billion, a P/E ratio of 20.28 and a beta of 1.16. The stock's 50-day simple moving average is $30.25 and its 200-day simple moving average is $27.98.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to analysts' expectations of $1.30 billion. During the same period last year, the company posted $0.98 earnings per share. The firm's quarterly revenue was down 3.8% compared to the same quarter last year. On average, equities analysts predict that Open Text Corporation will post 3.45 EPS for the current year.

Open Text Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, September 5th will be paid a dividend of $0.275 per share. This is a positive change from Open Text's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.10 dividend on an annualized basis and a dividend yield of 3.3%. Open Text's dividend payout ratio is 63.64%.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on OTEX. Barclays reiterated a "positive" rating on shares of Open Text in a research note on Friday, August 8th. CIBC reissued a "neutral" rating on shares of Open Text in a report on Monday, August 11th. Royal Bank Of Canada increased their price target on shares of Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a report on Tuesday. Wall Street Zen raised shares of Open Text from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Finally, Scotiabank increased their price target on shares of Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a report on Tuesday, August 12th. Two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $33.10.

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.