Virtus Advisers LLC Buys Shares of 90,450 Open Text Corporation $OTEX

Key Points

• Virtus Advisers LLC acquired 90,450 Open Text shares valued at approximately $2.84 million, making the stock its 11th-largest holding. Institutional investors collectively own 70.37% of the company.
• Open Text reported quarterly EPS of $1.23, beating estimates of $1.02, while revenue reached $1.33 billion—up 2.9% year over year and above expectations.
• Analysts maintain a consensus “Hold” rating with an average price target of $32.46. The company declared a quarterly dividend of $0.28, representing a $1.12 annualized payout and a 4.6% yield.

Virtus Advisers LLC purchased a new position in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 90,450 shares of the software maker's stock, valued at approximately $2,839,000. Open Text accounts for about 1.1% of Virtus Advisers LLC's investment portfolio, making the stock its 11th largest holding.

Other hedge funds and other institutional investors have also made changes to their positions in the company. CIBC Private Wealth Group LLC acquired a new position in shares of Open Text in the third quarter valued at approximately $33,000. Global Retirement Partners LLC purchased a new position in Open Text in the 2nd quarter valued at approximately $34,000. WealthCollab LLC boosted its position in Open Text by 39.5% in the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock valued at $48,000 after buying an additional 464 shares during the period. Caitong International Asset Management Co. Ltd grew its stake in shares of Open Text by 5,096.8% in the fourth 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 in the last quarter. Finally, Osaic Holdings Inc. increased its position in shares of Open Text by 108.8% during the second 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.

Open Text Stock Performance

Shares of OTEX opened at $24.60 on Friday. 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 52-week low of $19.77 and a 52-week high of $39.90. The stock has a 50 day moving average price of $23.26 and a 200 day moving average price of $23.34. The company has a market capitalization of $5.96 billion, a price-to-earnings ratio of 9.53 and a beta of 1.03.

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

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be paid a $0.28 dividend. This is a boost from Open Text's previous quarterly dividend of $0.28. The ex-dividend date is Friday, September 4th. This represents a $1.12 annualized dividend and a dividend yield of 4.6%. Open Text's dividend payout ratio (DPR) is 42.64%.

Analyst Ratings Changes

Several research analysts recently commented on OTEX shares. Citigroup boosted their target price on Open Text from $25.00 to $28.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Raymond James Financial cut Open Text from an "outperform" rating to a "market perform" rating and decreased their price objective for the company from $35.00 to $29.50 in a research note on Thursday, August 6th. Scotiabank lowered their price objective on Open Text from $40.00 to $33.00 and set a "sector outperform" rating for the company in a research report on Friday, August 7th. Scotia cut their target price on shares of Open Text from $40.00 to $33.00 and set a "sector outperform" rating on the stock in a research note on Friday, August 7th. Finally, National Bank Financial reduced their target price on shares of Open Text from $45.00 to $33.00 and set an "outperform" rating on the stock in a report on Wednesday, May 27th. Three research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price 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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