Royal Bank of Canada Cuts Stock Position in Open Text Corporation $OTEX

Key Points

• Royal Bank of Canada reduced its stake in Open Text Corporation (NASDAQ:OTEX) by 0.9%, holding approximately 7,050,489 shares valued at about $178 million.
• Open Text recently upgraded its dividend to $0.275 per share, reflecting an increase over the previous quarterly payment and offering a yield of 3.3%.
• Analyst ratings for Open Text show a consensus 'Hold' with an average price target of $32.60, following mixed ratings from various firms.

Royal Bank of Canada cut its position in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 0.9% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 7,050,489 shares of the software maker's stock after selling 63,906 shares during the period. Royal Bank of Canada owned approximately 2.72% of Open Text worth $178,094,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Twin Tree Management LP lifted its position in Open Text by 13,009.8% in the 1st quarter. Twin Tree Management LP now owns 55,061 shares of the software maker's stock valued at $1,391,000 after acquiring an additional 54,641 shares in the last quarter. Vident Advisory LLC lifted its position in Open Text by 6.6% in the 1st quarter. Vident Advisory LLC now owns 11,681 shares of the software maker's stock valued at $295,000 after acquiring an additional 722 shares in the last quarter. Magnetar Financial LLC bought a new position in Open Text in the 1st quarter valued at approximately $873,000. Canada Pension Plan Investment Board lifted its position in Open Text by 34.9% in the 1st quarter. Canada Pension Plan Investment Board now owns 1,247,467 shares of the software maker's stock valued at $31,490,000 after acquiring an additional 323,029 shares in the last quarter. Finally, State of Wyoming bought a new position in Open Text in the 1st quarter valued at approximately $435,000. 70.37% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

OTEX has been the topic of several research analyst reports. Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. CIBC reissued a "neutral" rating on shares of Open Text in a report on Monday, August 11th. Scotiabank increased their price target on Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a report on Tuesday, August 12th. Barclays reissued a "positive" rating on shares of Open Text in a report on Friday, August 8th. Finally, Jefferies Financial Group cut Open Text from a "buy" rating to a "hold" rating and set a $33.00 price target on the stock. in a report on Tuesday, August 12th. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $33.10.

Open Text Stock Performance

Open Text stock traded down $0.24 during trading on Friday, reaching $33.23. The company had a trading volume of 1,839,245 shares, compared to its average volume of 1,785,200. Open Text Corporation has a 52 week low of $22.79 and a 52 week high of $34.20. The firm's 50-day simple moving average is $30.43 and its 200 day simple moving average is $28.05. The firm has a market capitalization of $8.45 billion, a price-to-earnings ratio of 20.14 and a beta of 1.16. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.61.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its earnings results on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, topping 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 company had revenue of $1.32 billion for the quarter, compared to analysts' expectations of $1.30 billion. During the same period last year, the firm earned $0.98 EPS. Open Text's revenue for the quarter was down 3.8% compared to the same quarter last year. Sell-side analysts forecast that Open Text Corporation will post 3.45 earnings per share for the current fiscal year.

Open Text Increases Dividend

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

Open Text Company 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.