Quartz Partners LLC Makes New $4.04 Million Investment in Open Text Corporation $OTEX

Key Points

• Quartz Partners LLC invested approximately $4.04 million in Open Text during the second quarter, acquiring 182,637 shares and making the stock 1.3% of its portfolio. Institutional investors collectively own 70.37% of the company.
• Analysts remain cautious, with a consensus “Hold” rating and an average price target of $32.46, although several firms recently lowered their targets.
• Open Text exceeded quarterly expectations, reporting $1.23 in EPS on $1.33 billion in revenue, while maintaining a quarterly dividend of $0.28 per share, equivalent to a 4.6% annual yield.

Quartz Partners LLC purchased a new stake in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 182,637 shares of the software maker's stock, valued at approximately $4,045,000. Open Text makes up 1.3% of Quartz Partners LLC's investment portfolio, making the stock its 28th biggest holding. Quartz Partners LLC owned about 0.08% of Open Text at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in OTEX. CIBC Private Wealth Group LLC purchased a new stake in shares of Open Text during the third quarter valued at $33,000. Global Retirement Partners LLC purchased a new position in Open Text in the 2nd quarter worth $34,000. Caitong International Asset Management Co. Ltd raised its stake in Open Text by 5,096.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker's stock worth $52,000 after acquiring an additional 1,580 shares during the last quarter. WealthCollab LLC lifted its position in Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock worth $48,000 after acquiring an additional 464 shares during the period. Finally, Osaic Holdings Inc. lifted its position in Open Text by 108.8% during the 2nd quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker's stock worth $52,000 after acquiring an additional 937 shares during the period. Hedge funds and other institutional investors own 70.37% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on OTEX shares. Raymond James Financial lowered Open Text from an "outperform" rating to a "market perform" rating and cut their price objective for the company from $35.00 to $29.50 in a report on Thursday, August 6th. Royal Bank Of Canada decreased their target price on Open Text from $30.00 to $27.00 and set a "sector perform" rating for the company in a report on Friday, May 8th. National Bank Financial dropped their target price on Open Text from $45.00 to $33.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 27th. Scotiabank cut their price target on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating on the stock in a report on Friday, August 7th. Finally, Barclays raised their price target on shares of Open Text from $25.00 to $27.00 and gave the stock an "equal weight" rating in a research report on Monday, May 11th. Three analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $32.46.

Open Text Stock Performance

NASDAQ OTEX opened at $24.51 on Thursday. The stock has a 50-day simple moving average of $23.21 and a two-hundred day simple moving average of $23.34. The firm has a market capitalization of $5.93 billion, a P/E ratio of 9.50 and a beta of 1.03. Open Text Corporation has a fifty-two week low of $19.77 and a fifty-two week high of $39.90. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.81 and a current ratio of 0.81.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.21. The business had revenue of $1.33 billion during the quarter, compared to analysts' expectations 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 quarter in the previous year, the firm posted $0.97 EPS. On average, equities analysts forecast that Open Text Corporation will post 4.32 earnings per share for the current year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, September 4th will be issued a $0.28 dividend. The ex-dividend date of this dividend is Friday, September 4th. This is a boost from Open Text's previous quarterly dividend of $0.28. This represents a $1.12 dividend on an annualized basis and a yield of 4.6%. Open Text's dividend payout ratio is presently 42.64%.

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.

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