Open Text Corporation $OTEX Shares Acquired by Value Partners Investments Inc.

Key Points

• Value Partners Investments Inc. boosted its Open Text stake by 30% in Q1, buying 556,534 additional shares and lifting its holdings to 2.41 million shares, worth about $53.7 million.
• Open Text shares were up 3.4% on the day, and the stock has a market cap of about $5.36 billion with a P/E ratio of 10.78.
• The company recently beat quarterly earnings expectations, posting $1.01 EPS versus the $0.94 estimate, while revenue rose 2.2% year over year to $1.28 billion; it also pays a quarterly dividend yielding about 5.0%.

Value Partners Investments Inc. increased its holdings in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 30.0% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 2,413,989 shares of the software maker's stock after purchasing an additional 556,534 shares during the quarter. Open Text makes up approximately 4.1% of Value Partners Investments Inc.'s portfolio, making the stock its 11th biggest position. Value Partners Investments Inc. owned approximately 1.00% of Open Text worth $53,687,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in the stock. CIBC Private Wealth Group LLC purchased a new stake in shares of Open Text during the 3rd quarter worth approximately $33,000. WealthCollab LLC raised its stake in Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock worth $48,000 after acquiring an additional 464 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in Open Text by 5,096.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker's stock valued at $52,000 after acquiring an additional 1,580 shares during the last quarter. Osaic Holdings Inc. boosted its stake in Open Text by 108.8% in the second quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker's stock valued at $52,000 after acquiring an additional 937 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its holdings in shares of Open Text by 39.7% during the second quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker's stock worth $59,000 after purchasing an additional 570 shares during the last quarter. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Open Text Trading Up 3.4%

NASDAQ:OTEX opened at $22.09 on Friday. Open Text Corporation has a 12-month low of $19.77 and a 12-month high of $39.90. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.56. The stock's 50 day simple moving average is $22.79 and its 200-day simple moving average is $25.55. The firm has a market cap of $5.36 billion, a P/E ratio of 10.78 and a beta of 1.05.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its quarterly earnings results on Thursday, May 7th. The software maker reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.94 by $0.07. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The firm had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same period in the prior year, the company posted $0.82 earnings per share. The firm's revenue for the quarter was up 2.2% on a year-over-year basis. Equities analysts anticipate that Open Text Corporation will post 4.05 EPS for the current year.

Open Text Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were issued a dividend of $0.275 per share. The ex-dividend date of this dividend was Friday, June 5th. This represents a $1.10 dividend on an annualized basis and a yield of 5.0%. Open Text's payout ratio is currently 53.66%.

Analysts Set New Price Targets

A number of analysts recently issued reports on OTEX shares. Raymond James Financial decreased their target price on Open Text from $42.00 to $35.00 and set an "outperform" rating for the company in a research report on Friday, May 8th. Barclays increased their price objective on Open Text from $25.00 to $27.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Wall Street Zen upgraded shares of Open Text from a "buy" rating to a "strong-buy" rating in a research report on Saturday, May 9th. Royal Bank Of Canada reduced their price target on shares of Open Text from $30.00 to $27.00 and set a "sector perform" rating for the company in a research report on Friday, May 8th. Finally, Scotia decreased their price target on shares of Open Text from $50.00 to $40.00 and set a "sector outperform" rating for the company in a research note on Friday, May 8th. Four research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Open Text has an average rating of "Hold" and an average target price of $33.67.

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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