American Century Companies Inc. Buys 76,865 Shares of Open Text Corporation $OTEX

Key Points

• American Century Companies Inc. increased its holdings in Open Text Corporation by 25.7%, owning approximately 0.14% of the company worth about $9.5 million as of the latest reporting period.
• Open Text reported a net margin of 8.43% with Q2 earnings surpassing expectations at $0.97 EPS on revenues of $1.32 billion, compared to analyst estimates of $1.30 billion.
• The company has announced a quarterly dividend increase to $0.275 per share, resulting in an annualized dividend yield of 3.4% and a payout ratio of 66.67%.

American Century Companies Inc. lifted its stake in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 25.7% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 375,844 shares of the software maker's stock after buying an additional 76,865 shares during the quarter. American Century Companies Inc. owned about 0.14% of Open Text worth $9,486,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently modified their holdings of OTEX. Versant Capital Management Inc acquired a new stake in shares of Open Text during the 1st quarter worth approximately $26,000. Parallel Advisors LLC grew its position in shares of Open Text by 219.3% during the 1st 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 4th quarter worth approximately $60,000. Headlands Technologies LLC increased its holdings 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 valued at $73,000 after acquiring an additional 2,261 shares in the last quarter. Finally, Parvin Asset Management LLC bought a new stake in shares of Open Text during the fourth quarter valued at approximately $128,000. Institutional investors and hedge funds own 70.37% of the company's stock.

Open Text Stock Performance

Shares of NASDAQ OTEX traded up $0.10 during trading on Friday, reaching $33.07. 1,489,881 shares of the stock traded hands, compared to its average volume of 1,617,021. Open Text Corporation has a 52-week low of $22.79 and a 52-week 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 50-day moving average of $29.97 and a 200-day moving average of $27.89. The stock has a market capitalization of $8.41 billion, a P/E ratio of 20.04 and a beta of 1.12.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings results on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, beating analysts' consensus estimates of $0.86 by $0.11. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The firm had revenue of $1.32 billion for the quarter, compared to analysts' expectations of $1.30 billion. During the same quarter in the prior year, the firm earned $0.98 EPS. The business's revenue for the quarter was down 3.8% compared to the same quarter last year. Analysts forecast that Open Text Corporation will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

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

Analysts Set New Price Targets

OTEX has been the subject of several recent research reports. BMO Capital Markets decreased their price objective on Open Text from $30.00 to $28.00 and set a "market perform" rating for the company in a report on Friday, May 2nd. UBS Group decreased their price target on Open Text from $32.00 to $28.00 and set a "neutral" rating for the company in a report on Friday, May 2nd. Scotiabank upped their price target on Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a report on Tuesday, August 12th. Jefferies Financial Group downgraded Open Text from a "buy" rating to a "hold" rating and set a $33.00 price target for the company. in a report on Tuesday, August 12th. Finally, Barclays reiterated a "positive" rating on shares of Open Text in a report on Friday, August 8th. Two analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Open Text has an average rating of "Hold" and an average price target of $32.60.

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.