TD Waterhouse Canada Inc. Acquires 63,757 Shares of Open Text Corporation $OTEX

Key Points

• TD Waterhouse Canada increased its Open Text holdings by 3.3%, buying 63,757 shares to own 1.98 million shares valued at approximately $45.2 million. Institutional investors collectively own 70.37% of the company.
• Open Text reported quarterly earnings of $1.23 per share, beating estimates of $1.02, while revenue reached $1.33 billion and rose 2.9% year over year.
• The company maintains a quarterly dividend of $0.28 per share, representing a $1.12 annualized payout and a 4.5% yield. Analysts’ consensus rating is Hold, with an average price target of $32.46.

TD Waterhouse Canada Inc. grew its holdings in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 3.3% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,977,244 shares of the software maker's stock after buying an additional 63,757 shares during the period. TD Waterhouse Canada Inc. owned 0.82% of Open Text worth $45,232,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in OTEX. Goldman Sachs Group Inc. lifted its holdings in Open Text by 75.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker's stock valued at $36,307,000 after purchasing an additional 619,527 shares during the last quarter. United Services Automobile Association bought a new position in shares of Open Text in the first quarter valued at about $213,000. EverSource Wealth Advisors LLC raised its position in shares of Open Text by 39.7% in the second quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker's stock valued at $59,000 after purchasing an additional 570 shares during the period. Cerity Partners LLC lifted its stake in shares of Open Text by 3.4% during the 2nd quarter. Cerity Partners LLC now owns 49,003 shares of the software maker's stock worth $1,431,000 after buying an additional 1,612 shares during the last quarter. Finally, Qube Research & Technologies Ltd lifted its stake in shares of Open Text by 16.8% during the 2nd quarter. Qube Research & Technologies Ltd now owns 46,500 shares of the software maker's stock worth $1,360,000 after buying an additional 6,700 shares during the last quarter. 70.37% of the stock is currently owned by institutional investors.

Open Text Trading Up 5.4%

Shares of Open Text stock opened at $24.85 on Friday. The firm's 50-day moving average price is $23.92 and its two-hundred day moving average price is $23.35. The company has a market capitalization of $6.02 billion, a price-to-earnings ratio of 9.63 and a beta of 1.02. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.43. Open Text Corporation has a 12-month low of $19.77 and a 12-month high of $39.90.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, topping analysts' consensus estimates of $1.02 by $0.21. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.29 billion. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The firm's quarterly revenue was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.97 EPS. On average, analysts forecast that Open Text Corporation will post 3.72 earnings per share for the current fiscal year.

Open Text Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, September 4th will be paid a dividend of $0.28 per share. The ex-dividend date is Friday, September 4th. This is a boost from Open Text's previous quarterly dividend of $0.28. This represents a $1.12 annualized dividend and a yield of 4.5%. Open Text's dividend payout ratio is currently 42.64%.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. Citigroup upped their price target on shares of Open Text from $25.00 to $28.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. National Bank Financial cut their price objective on shares of Open Text from $45.00 to $33.00 and set an "outperform" rating for the company in a research report on Wednesday, May 27th. Royal Bank Of Canada reduced their price objective 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. Zacks Research lowered Open Text from a "hold" rating to a "strong sell" rating in a research note on Friday, August 21st. Finally, Wall Street Zen cut Open Text from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Three equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $32.46.

Open Text Company 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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