Picton Mahoney Asset Management Buys New Shares in Open Text Corporation $OTEX

Key Points

• Picton Mahoney Asset Management bought a new position of 312,223 shares (~$11.67M) in Open Text in Q3, and institutional investors now own about 70.37% of the stock as several other funds also added or increased stakes.
• Several brokerages trimmed price targets on OTEX (e.g., Raymond James, Citigroup, RBC), leaving the consensus rating at "Hold" with a consensus target price of $35.75.
• Open Text recently beat quarterly estimates with $1.13 EPS (vs. $1.04 est.) and $1.32B revenue, and announced a quarterly dividend of $0.275 (annualized $1.10) representing a 4.4% yield.

Picton Mahoney Asset Management purchased a new position in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 312,223 shares of the software maker's stock, valued at approximately $11,668,000. Picton Mahoney Asset Management owned approximately 0.12% of Open Text as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Victory Capital Management Inc. bought a new position in shares of Open Text during the 3rd quarter valued at approximately $663,000. Spark Investment Management LLC purchased a new position in Open Text during the third quarter valued at approximately $1,495,000. APG Asset Management N.V. boosted its position in shares of Open Text by 2.2% in the third quarter. APG Asset Management N.V. now owns 149,000 shares of the software maker's stock worth $5,570,000 after purchasing an additional 3,200 shares during the period. Aviso Financial Inc. increased its stake in shares of Open Text by 9.4% in the third quarter. Aviso Financial Inc. now owns 103,046 shares of the software maker's stock worth $3,852,000 after purchasing an additional 8,875 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in shares of Open Text by 13.2% in the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 29,051 shares of the software maker's stock worth $1,086,000 after purchasing an additional 3,396 shares in the last quarter. Institutional investors own 70.37% of the company's stock.

Analyst Ratings Changes

A number of brokerages have issued reports on OTEX. Raymond James Financial cut their price target on Open Text from $48.00 to $42.00 and set an "outperform" rating for the company in a research note on Friday, February 6th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Open Text in a research report on Monday, December 29th. Citigroup dropped their price target on Open Text from $36.00 to $26.00 and set a "neutral" rating for the company in a research note on Friday, February 6th. Zacks Research cut shares of Open Text from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 5th. Finally, Royal Bank Of Canada decreased their price target on shares of Open Text from $33.00 to $30.00 and set a "sector perform" rating on the stock in a research note on Friday, February 6th. Three investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $35.75.

Open Text Stock Performance

Shares of NASDAQ:OTEX opened at $25.06 on Thursday. The firm has a fifty day simple moving average of $27.93 and a two-hundred day simple moving average of $32.79. Open Text Corporation has a 52 week low of $22.44 and a 52 week high of $39.90. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.57. The stock has a market capitalization of $6.28 billion, a P/E ratio of 14.74 and a beta of 1.08.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its quarterly earnings results on Thursday, February 5th. The software maker reported $1.13 EPS for the quarter, beating analysts' consensus estimates of $1.04 by $0.09. Open Text had a net margin of 8.42% and a return on equity of 23.60%. The firm had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter last year, the firm earned $1.11 EPS. The firm's revenue for the quarter was down .6% compared to the same quarter last year. On average, analysts expect that Open Text Corporation will post 3.45 earnings per share for the current fiscal year.

Open Text Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be issued a $0.275 dividend. The ex-dividend date is Friday, March 6th. This represents a $1.10 dividend on an annualized basis and a dividend yield of 4.4%. Open Text's payout ratio is 64.71%.

Open Text Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company's platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text's product suite includes content services, business process management, customer experience management, analytics and security products.

Want to see what other hedge funds are holding OTEX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.