Open Text Corporation $OTEX Stake Lowered by Louisbourg Investments Inc.

Key Points

• Louisbourg Investments Inc. reduced its stake in Open Text Corporation by 12.4% in the second quarter, bringing their total holdings to 98,571 shares worth approximately $2.88 million.
• Analysts have mixed views on Open Text, with ratings varying from "Buy" to "Hold," and a consensus price target set at $37.25.
• Open Text recently increased its quarterly dividend from $0.26 to $0.275 per share, resulting in an annualized dividend yield of 2.8%.

Louisbourg Investments Inc. cut its stake in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 12.4% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 98,571 shares of the software maker's stock after selling 13,894 shares during the quarter. Louisbourg Investments Inc.'s holdings in Open Text were worth $2,875,000 as of its most recent SEC filing.

Other institutional investors also recently made changes to their positions in the company. Plato Investment Management Ltd grew its holdings in shares of Open Text by 926.0% during the first quarter. Plato Investment Management Ltd now owns 49,999 shares of the software maker's stock valued at $1,276,000 after purchasing an additional 45,126 shares during the last quarter. Korea Investment CORP grew its holdings in shares of Open Text by 107.7% during the first quarter. Korea Investment CORP now owns 188,444 shares of the software maker's stock valued at $4,755,000 after purchasing an additional 97,700 shares during the last quarter. Allspring Global Investments Holdings LLC grew its holdings in shares of Open Text by 12.7% during the first quarter. Allspring Global Investments Holdings LLC now owns 187,565 shares of the software maker's stock valued at $4,735,000 after purchasing an additional 21,089 shares during the last quarter. Value Partners Investments Inc. grew its holdings in shares of Open Text by 9.8% during the second quarter. Value Partners Investments Inc. now owns 2,561,601 shares of the software maker's stock valued at $74,709,000 after purchasing an additional 228,062 shares during the last quarter. Finally, Oppenheimer Asset Management Inc. bought a new position in shares of Open Text during the first quarter valued at approximately $323,000. 70.37% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. CIBC reiterated a "neutral" rating on shares of Open Text in a research report on Monday, August 11th. Weiss Ratings reissued a "hold (c)" rating on shares of Open Text in a report on Wednesday. National Bank Financial raised Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 price objective for the company in a report on Monday, September 15th. Wall Street Zen raised Open Text from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Finally, TD Securities lowered Open Text from a "buy" rating to a "hold" rating and increased their price objective for the stock from $35.00 to $40.00 in a report on Friday, October 3rd. Four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $37.25.

Open Text Stock Performance

OTEX opened at $38.60 on Friday. The company has a market capitalization of $9.76 billion, a price-to-earnings ratio of 23.39 and a beta of 1.17. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.80 and a quick ratio of 0.80. Open Text Corporation has a 1-year low of $22.79 and a 1-year high of $39.84. The business has a 50 day moving average price of $34.31 and a two-hundred day moving average price of $29.93.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its earnings results on Thursday, August 7th. The software maker reported $0.97 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.11. The firm had revenue of $1.32 billion during 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 revenue for the quarter was down 3.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.98 earnings per share. Research analysts predict 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 was paid on Friday, September 19th. Stockholders of record on Friday, September 5th were given a dividend of $0.275 per share. This is a boost from Open Text's previous quarterly dividend of $0.26. 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%. Open Text's 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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