Plato Investment Management Ltd Has $1.28 Million Stake 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 grew its holdings in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 926.0% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 49,999 shares of the software maker's stock after purchasing 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 quarter.

Several other institutional investors and hedge funds have also modified their holdings of OTEX. Northern Trust Corp lifted its stake in shares of Open Text by 31.4% during the fourth quarter. Northern Trust Corp now owns 151,281 shares of the software maker's stock valued at $4,284,000 after buying an additional 36,123 shares during the period. BNP Paribas Financial Markets raised its stake in Open Text by 154.5% during the fourth quarter. BNP Paribas Financial Markets now owns 28,233 shares of the software maker's stock worth $800,000 after purchasing an additional 17,140 shares during the period. Bank of America Corp DE raised its stake in Open Text by 91.3% during the fourth quarter. Bank of America Corp DE now owns 1,602,313 shares of the software maker's stock worth $45,378,000 after purchasing an additional 764,734 shares during the period. Deutsche Bank AG raised its stake in Open Text by 9.7% during the fourth quarter. Deutsche Bank AG now owns 872,591 shares of the software maker's stock worth $24,712,000 after purchasing an additional 76,802 shares during the period. Finally, Lazard Asset Management LLC raised its stake in Open Text by 101.7% during the fourth quarter. Lazard Asset Management LLC now owns 53,656 shares of the software maker's stock worth $1,519,000 after purchasing an additional 27,049 shares during the period. Hedge funds and other institutional investors own 70.37% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on OTEX shares. Jefferies Financial Group downgraded shares of Open Text from a "buy" rating to a "hold" rating and set a $33.00 target price on the stock. in a research note on Tuesday, August 12th. National Bank Financial upgraded shares of Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 price objective on the stock in a research report on Monday. Royal Bank Of Canada boosted their price target on shares of Open Text from $30.00 to $35.00 and gave the stock a "sector perform" rating in a research report on Tuesday, September 2nd. CIBC restated a "neutral" rating on shares of Open Text in a research report on Monday, August 11th. Finally, Scotiabank boosted their price objective on shares of Open Text from $30.00 to $35.00 and gave the company a "sector perform" rating in a research report on Tuesday, August 12th. Four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $35.18.

Open Text Stock Down 2.5%

Shares of NASDAQ OTEX traded down $0.94 during midday trading on Tuesday, reaching $36.72. The company's stock had a trading volume of 421,879 shares, compared to its average volume of 1,334,772. The stock has a market capitalization of $9.34 billion, a price-to-earnings ratio of 22.28 and a beta of 1.15. Open Text Corporation has a fifty-two week low of $22.79 and a fifty-two week high of $38.08. The stock has a 50 day simple moving average of $31.10 and a 200-day simple moving average of $28.43. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.61.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued 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 business had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.30 billion. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The firm's revenue for the quarter was down 3.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.98 earnings per share. Equities research analysts predict that Open Text Corporation will post 3.45 earnings per share for the current year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, September 5th will be issued a $0.275 dividend. This is an increase from Open Text's previous quarterly dividend of $0.26. This represents a $1.10 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, September 5th. Open Text's dividend payout ratio is presently 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.