Open Text Corporation $OTEX is Value Partners Investments Inc.'s 2nd Largest Position

Key Points

• Value Partners Investments Inc. increased its holdings in Open Text Corporation by 9.8%, owning 2,561,601 shares valued at approximately $74.7 million.
• Open Text recently declared a quarterly dividend of $0.275, marking an increase from the previous dividend of $0.26, with a yield of 3.1%.
• Analysts have mixed ratings on Open Text, with a consensus rating of "Hold" and an average price target of $33.10, following recent performance exceeding earnings estimates.

Value Partners Investments Inc. lifted its holdings in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 9.8% during the second quarter, according to its most recent disclosure with the SEC. The fund owned 2,561,601 shares of the software maker's stock after acquiring an additional 228,062 shares during the period. Open Text makes up approximately 5.8% of Value Partners Investments Inc.'s investment portfolio, making the stock its 2nd largest holding. Value Partners Investments Inc. owned 1.00% of Open Text worth $74,709,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of OTEX. Versant Capital Management Inc purchased a new stake in Open Text during the 1st quarter worth approximately $26,000. Parallel Advisors LLC increased its position in shares of Open Text by 219.3% in the 1st quarter. Parallel Advisors LLC now owns 1,938 shares of the software maker's stock valued at $49,000 after acquiring an additional 1,331 shares during the period. Headlands Technologies LLC raised its stake in Open Text by 360.6% in the 1st quarter. Headlands Technologies LLC now owns 2,888 shares of the software maker's stock worth $73,000 after acquiring an additional 2,261 shares during the last quarter. United Services Automobile Association purchased a new stake in Open Text during the 1st quarter valued at about $213,000. Finally, Ridgewood Investments LLC raised its stake in shares of Open Text by 593.1% in the first quarter. Ridgewood Investments LLC now owns 8,664 shares of the software maker's stock worth $219,000 after purchasing an additional 7,414 shares during the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms recently commented on OTEX. National Bank Financial raised Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 target price on the stock in a report on Monday. Jefferies Financial Group cut 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. Barclays reaffirmed a "positive" rating on shares of Open Text in a research note on Friday, August 8th. Wall Street Zen upgraded shares of Open Text from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Finally, National Bankshares upgraded Open Text from a "sector perform" rating to an "outperform" rating and lifted their price objective for the stock from $34.00 to $45.00 in a report on Monday. Four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $35.18.

Open Text Trading Down 2.8%

OTEX stock traded down $1.07 during midday trading on Tuesday, hitting $36.59. 1,819,632 shares of the company's stock were exchanged, compared to its average volume of 1,751,517. Open Text Corporation has a 1-year low of $22.79 and a 1-year high of $38.08. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.61. The stock has a market capitalization of $9.31 billion, a PE ratio of 22.18 and a beta of 1.16. The business has a 50-day simple moving average of $31.23 and a two-hundred day simple moving average of $28.49.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued its quarterly earnings data on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, topping the consensus estimate of $0.86 by $0.11. The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.30 billion. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The business's revenue for the quarter was down 3.8% compared to the same quarter last year. During the same period in the prior year, the business posted $0.98 EPS. On average, sell-side analysts predict that Open Text Corporation will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, September 5th will be paid a $0.275 dividend. This is an increase from Open Text's previous quarterly dividend of $0.26. This represents a $1.10 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Friday, September 5th. Open Text's dividend payout ratio (DPR) is presently 66.67%.

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.