Open Text Corporation $OTEX Stock: TD Waterhouse Canada Inc. Lowers Holdings

Key Points

• TD Waterhouse Canada cut its Open Text stake by 56.4% in the third quarter, selling 1.12 million shares and retaining 861,852 shares. Institutional investors and hedge funds collectively own 70.37% of OTEX.
• Analyst sentiment remains cautious: Open Text has an average rating of “Hold” and a consensus price target of $30.95, despite one analyst upgrading the stock to “Buy.”
• Open Text exceeded quarterly earnings expectations with $1.23 EPS and $1.33 billion in revenue, while raising its quarterly dividend to $0.28 per share, equivalent to a 4.4% annual yield.

TD Waterhouse Canada Inc. lessened its holdings in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 56.4% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 861,852 shares of the software maker's stock after selling 1,115,392 shares during the quarter. TD Waterhouse Canada Inc. owned 0.36% of Open Text worth $19,468,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in OTEX. Ridgewood Investments LLC grew its stake in Open Text by 1.4% in the third quarter. Ridgewood Investments LLC now owns 67,238 shares of the software maker's stock worth $1,507,000 after purchasing an additional 936 shares in the last quarter. Sequoia Financial Advisors LLC grew its stake in Open Text by 8.3% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 17,506 shares of the software maker's stock worth $388,000 after buying an additional 1,337 shares during the last quarter. Tidal Investments LLC grew its position in shares of Open Text by 797.0% during the second quarter. Tidal Investments LLC now owns 300,997 shares of the software maker's stock worth $6,667,000 after acquiring an additional 267,440 shares during the last quarter. Engineers Gate Manager LP increased its stake in shares of Open Text by 807.5% in the second quarter. Engineers Gate Manager LP now owns 88,032 shares of the software maker's stock valued at $1,950,000 after purchasing an additional 78,332 shares during the period. Finally, Nykredit A S acquired a new stake in Open Text in the 2nd quarter valued at approximately $179,000. 70.37% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

OTEX has been the subject of a number of research analyst reports. Scotiabank reduced their price target on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating for the company in a research note on Friday, August 7th. Weiss Ratings raised Open Text from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday. Scotia decreased their price objective on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating for the company in a research note on Friday, August 7th. UBS Group raised their price objective on Open Text from $25.00 to $27.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Finally, Wall Street Zen upgraded shares of Open Text from a "hold" rating to a "buy" rating in a report on Saturday, September 5th. Three investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Open Text has an average rating of "Hold" and a consensus target price of $30.95.

Open Text Stock Down 1.3%

OTEX stock opened at $25.50 on Friday. The stock has a market capitalization of $6.17 billion, a price-to-earnings ratio of 9.88 and a beta of 1.01. The company has a 50-day moving average of $23.76 and a two-hundred day moving average of $23.24. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.81 and a quick ratio of 0.81. Open Text Corporation has a 52-week low of $19.77 and a 52-week high of $39.81.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings results on Thursday, August 6th. The software maker reported $1.23 EPS for the quarter, topping the consensus estimate of $1.02 by $0.21. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.29 billion. Open Text had a return on equity of 25.76% and a net margin of 12.26%. The company's revenue for the quarter was up 2.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.97 EPS. As a group, equities research analysts anticipate that Open Text Corporation will post 3.72 EPS for the current year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were given a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 4.4%. This is a boost from Open Text's previous quarterly dividend of $0.2750. The ex-dividend date of this dividend was Friday, September 4th. Open Text's dividend payout ratio (DPR) is 43.41%.

About Open Text

OpenText Corporation NASDAQ: OTEX is a Canadian enterprise software company that provides information management solutions for organizations worldwide. Its products help businesses create, capture, manage, secure, exchange and analyze content and data across digital operations.

The company's portfolio includes enterprise content management, business process management, customer experience management, secure file transfer, cybersecurity, IT operations management, analytics and developer tools.

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