Plato Investment Management Ltd Increases Stock Holdings in Open Text Corporation $OTEX

Key Points

• Plato Investment Management Ltd significantly increased its stake in Open Text Corporation by 926.0% in Q1, owning nearly 50,000 shares valued at $1.28 million.
• Open Text announced a quarterly dividend of $0.275 per share, reflecting an increase from the previous quarter's dividend, representing an annualized yield of 3.1%.
• The company reported a net margin of 8.43% and earnings of $0.97 per share, exceeding estimates, despite a 3.8% decrease in year-over-year revenue.

Plato Investment Management Ltd raised its holdings in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 926.0% in the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 49,999 shares of the software maker's stock after buying an additional 45,126 shares during the quarter. Plato Investment Management Ltd's holdings in Open Text were worth $1,276,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of OTEX. United Services Automobile Association purchased a new position in shares of Open Text in the 1st quarter valued at approximately $213,000. Guardian Partners Inc. increased its stake in Open Text by 9.5% during the 1st quarter. Guardian Partners Inc. now owns 203,426 shares of the software maker's stock valued at $5,083,000 after purchasing an additional 17,654 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Open Text by 75.8% in the first quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker's stock worth $36,307,000 after buying an additional 619,527 shares during the last quarter. Advisors Asset Management Inc. lifted its stake in shares of Open Text by 75.2% during the first quarter. Advisors Asset Management Inc. now owns 10,719 shares of the software maker's stock worth $271,000 after buying an additional 4,601 shares during the period. Finally, Twin Tree Management LP grew its holdings in shares of Open Text by 13,009.8% during the first quarter. Twin Tree Management LP now owns 55,061 shares of the software maker's stock valued at $1,391,000 after buying an additional 54,641 shares during the last quarter. Hedge funds and other institutional investors own 70.37% of the company's stock.

Open Text Price Performance

NASDAQ:OTEX opened at $35.11 on Thursday. The company has a debt-to-equity ratio of 1.61, a current ratio of 0.80 and a quick ratio of 0.80. The company has a 50 day moving average price of $30.72 and a 200-day moving average price of $28.20. Open Text Corporation has a 1-year low of $22.79 and a 1-year high of $35.25. The firm has a market cap of $8.93 billion, a price-to-earnings ratio of 21.28 and a beta of 1.16.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its quarterly earnings results on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, beating the consensus estimate of $0.86 by $0.11. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The company had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.30 billion. During the same quarter last year, the business earned $0.98 earnings per share. The firm's revenue was down 3.8% on a year-over-year basis. Equities research analysts forecast that Open Text Corporation will post 3.45 EPS for the current year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Investors of record on Friday, September 5th will be paid a $0.275 dividend. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.10 dividend on an annualized basis and a yield of 3.1%. This is an increase from Open Text's previous quarterly dividend of $0.26. Open Text's dividend payout ratio is 66.67%.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the company. Barclays restated a "positive" rating on shares of Open Text in a research note on Friday, August 8th. Royal Bank Of Canada lifted their target price on Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a report on Tuesday, September 2nd. Jefferies Financial Group lowered Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price on the stock. in a research report on Tuesday, August 12th. Wall Street Zen raised shares of Open Text from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Finally, CIBC reaffirmed a "neutral" rating on shares of Open Text in a report on Monday, August 11th. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $33.10.

Open Text Company Profile

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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