Plato Investment Management Ltd Buys New Shares in Open Text Corporation $OTEX

Key Points

• Plato Investment Management purchased 53,525 Open Text shares worth approximately $1.18 million in the second quarter. Institutional investors collectively own 70.37% of the company.
• Open Text beat quarterly expectations, reporting $1.23 in earnings per share versus the $1.02 consensus and revenue of $1.33 billion versus $1.29 billion expected. Revenue increased 2.9% year over year.
• The company declared a quarterly dividend of $0.28 per share, equivalent to an annualized $1.12 payout and a 4.7% yield. Analysts maintain a consensus “Hold” rating with an average price target of $32.46.

Plato Investment Management Ltd purchased a new stake in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm purchased 53,525 shares of the software maker's stock, valued at approximately $1,177,000.

A number of other institutional investors and hedge funds also recently modified their holdings of the company. Tidal Investments LLC lifted its stake in Open Text by 2.6% in the 2nd quarter. Tidal Investments LLC now owns 18,059 shares of the software maker's stock valued at $527,000 after purchasing an additional 460 shares during the last quarter. WealthCollab LLC raised its stake in Open Text by 39.5% in the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock valued at $48,000 after buying an additional 464 shares during the period. Byrne Asset Management LLC lifted its position in shares of Open Text by 11.5% in the second quarter. Byrne Asset Management LLC now owns 4,837 shares of the software maker's stock valued at $107,000 after buying an additional 500 shares during the last quarter. Vident Advisory LLC boosted its stake in shares of Open Text by 3.7% during the 4th quarter. Vident Advisory LLC now owns 15,715 shares of the software maker's stock worth $512,000 after acquiring an additional 555 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of Open Text by 39.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker's stock worth $59,000 after acquiring an additional 570 shares during the period. 70.37% of the stock is owned by institutional investors.

Open Text Price Performance

Shares of Open Text stock opened at $23.93 on Tuesday. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.43. The stock has a market capitalization of $5.79 billion, a price-to-earnings ratio of 9.28 and a beta of 1.03. Open Text Corporation has a twelve month low of $19.77 and a twelve month high of $39.90. The company has a 50-day simple moving average of $23.11 and a two-hundred day simple moving average of $23.38.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, beating analysts' consensus estimates of $1.02 by $0.21. The firm had revenue of $1.33 billion during 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 was up 2.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.97 EPS. Analysts forecast that Open Text Corporation will post 4.32 EPS for the current year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be issued a dividend of $0.28 per share. This is an increase from Open Text's previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.7%. Open Text's payout ratio is presently 42.64%.

Analyst Ratings Changes

OTEX has been the subject of a number of research analyst reports. Scotiabank reduced 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 report on Friday, August 7th. Royal Bank Of Canada cut their target price on shares of Open Text from $30.00 to $27.00 and set a "sector perform" rating for the company in a research note on Friday, May 8th. Barclays upped their price target on shares of Open Text from $25.00 to $27.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Weiss Ratings reissued a "hold (c-)" rating on shares of Open Text in a report on Wednesday, June 24th. Finally, Wall Street Zen cut Open Text from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Three analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $32.46.

About Open Text

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.

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