Open Text Corporation $OTEX Stake Increased by Cidel Asset Management Inc.

Key Points

• Cidel Asset Management Inc. raised its stake in Open Text Corporation by 2.1% in Q2, now owning approximately 931,450 shares valued at $27 million.
• Open Text recently announced an increase in its quarterly dividend from $0.26 to $0.275, resulting in a 2.8% dividend yield for shareholders.
• Analysts have a consensus rating of "Hold" for Open Text, with price targets ranging from $30 to $45 following various ratings adjustments from different firms.

Cidel Asset Management Inc. increased its stake in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 2.1% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 931,450 shares of the software maker's stock after buying an additional 18,872 shares during the period. Open Text comprises about 1.6% of Cidel Asset Management Inc.'s investment portfolio, making the stock its 17th largest position. Cidel Asset Management Inc. owned approximately 0.36% of Open Text worth $27,162,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Cromwell Holdings LLC increased its stake in Open Text by 27.4% during the second quarter. Cromwell Holdings LLC now owns 1,635 shares of the software maker's stock valued at $48,000 after purchasing an additional 352 shares during the last quarter. Vident Advisory LLC boosted its holdings in shares of Open Text by 6.6% during the first 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 during the period. Vest Financial LLC boosted its holdings in shares of Open Text by 8.2% during the second quarter. Vest Financial LLC now owns 13,769 shares of the software maker's stock valued at $402,000 after acquiring an additional 1,045 shares during the period. Raymond James Financial Inc. boosted its holdings in shares of Open Text by 1.4% during the first quarter. Raymond James Financial Inc. now owns 127,887 shares of the software maker's stock valued at $3,230,000 after acquiring an additional 1,757 shares during the period. Finally, Alps Advisors Inc. boosted its holdings in shares of Open Text by 5.8% during the first quarter. Alps Advisors Inc. now owns 33,109 shares of the software maker's stock valued at $836,000 after acquiring an additional 1,807 shares during the period. Institutional investors own 70.37% of the company's stock.

Analyst Ratings Changes

Several research firms recently weighed in on OTEX. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Open Text in a report on Wednesday, October 8th. Royal Bank Of Canada raised their price objective on shares of Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a research report on Tuesday, September 2nd. TD Cowen restated a "hold" rating and set a $40.00 price objective on shares of Open Text in a research report on Friday, October 3rd. Jefferies Financial Group lowered shares of Open Text from a "buy" rating to a "hold" rating and set a $33.00 price objective for the company. in a research report on Tuesday, August 12th. Finally, National Bankshares upgraded Open Text from a "sector perform" rating to an "outperform" rating and boosted their price objective for the stock from $34.00 to $45.00 in a report on Monday, September 15th. Four analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Open Text has an average rating of "Hold" and a consensus price target of $37.25.

Open Text Price Performance

NASDAQ OTEX opened at $39.03 on Friday. The stock's 50-day moving average price is $35.31 and its two-hundred day moving average price is $30.41. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.61. The company has a market cap of $9.87 billion, a PE ratio of 23.65 and a beta of 1.17. Open Text Corporation has a 1 year low of $22.79 and a 1 year high of $39.90.

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 for the quarter, beating analysts' consensus estimates of $0.86 by $0.11. The company had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.30 billion. Open Text had a return on equity of 22.52% and a net margin of 8.43%.The firm's quarterly revenue was down 3.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.98 EPS. On average, analysts predict that Open Text Corporation will post 3.45 EPS for the current year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 19th. Stockholders of record on Friday, September 5th were issued a $0.275 dividend. The ex-dividend date was Friday, September 5th. This represents a $1.10 dividend on an annualized basis and a dividend yield of 2.8%. This is a positive change from Open Text's previous quarterly dividend of $0.26. Open Text's dividend payout ratio is currently 66.67%.

About Open Text

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.

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