Vontobel Holding Ltd. Decreases Stock Holdings in Open Text Corporation $OTEX

Key Points

• Vontobel Holding Ltd. reduced its stake in Open Text Corporation by 29.1% during the second quarter, leaving it with 46,435 shares valued at approximately $1.36 million.
• Several hedge funds, including Value Partners Investments Inc. and Goldman Sachs Group Inc., significantly increased their holdings in Open Text, indicating strong interest from institutional investors.
• Open Text announced a quarterly dividend increase, now at $0.275 per share, which represents a 2.8% yield for investors, up from the previous dividend of $0.26.

Vontobel Holding Ltd. trimmed its position in Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 29.1% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 46,435 shares of the software maker's stock after selling 19,015 shares during the quarter. Vontobel Holding Ltd.'s holdings in Open Text were worth $1,358,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently made changes to their positions in OTEX. Value Partners Investments Inc. increased its stake in shares of Open Text by 1,162.1% in the first quarter. Value Partners Investments Inc. now owns 2,333,539 shares of the software maker's stock worth $58,955,000 after buying an additional 2,148,639 shares during the period. Vanguard Group Inc. increased its stake in shares of Open Text by 6.1% in the first quarter. Vanguard Group Inc. now owns 11,151,279 shares of the software maker's stock worth $281,447,000 after buying an additional 639,514 shares during the period. Goldman Sachs Group Inc. increased its stake in shares of Open Text by 75.8% in the first quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker's stock worth $36,307,000 after buying an additional 619,527 shares during the period. Letko Brosseau & Associates Inc. increased its stake in shares of Open Text by 11.8% in the first quarter. Letko Brosseau & Associates Inc. now owns 4,860,805 shares of the software maker's stock worth $122,664,000 after buying an additional 512,050 shares during the period. Finally, Mackenzie Financial Corp increased its stake in shares of Open Text by 9.2% in the first quarter. Mackenzie Financial Corp now owns 5,876,003 shares of the software maker's stock worth $148,299,000 after buying an additional 492,897 shares during the period. 70.37% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Barclays reiterated a "positive" rating on shares of Open Text in a report on Friday, August 8th. Weiss Ratings reiterated a "hold (c)" rating on shares of Open Text in a report on Wednesday, October 8th. National Bank Financial upgraded shares of Open Text from a "sector perform" rating to an "outperform" rating and set a $45.00 price target on the stock in a report on Monday, September 15th. TD Cowen reiterated a "hold" rating and issued a $40.00 price target on shares of Open Text in a report on Friday, October 3rd. Finally, TD Securities cut shares of Open Text from a "buy" rating to a "hold" rating and lifted their price target for the company from $35.00 to $40.00 in a report on Friday, October 3rd. Four equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Open Text currently has an average rating of "Hold" and a consensus price target of $37.25.

Open Text Stock Performance

Shares of OTEX stock opened at $38.60 on Monday. Open Text Corporation has a 12 month low of $22.79 and a 12 month high of $39.84. The stock has a market cap of $9.76 billion, a PE ratio of 23.39 and a beta of 1.17. 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 company's fifty day moving average price is $34.31 and its 200-day moving average price is $29.97.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its earnings results on Thursday, August 7th. The software maker reported $0.97 EPS for the quarter, beating analysts' consensus estimates of $0.86 by $0.11. Open Text had a net margin of 8.43% and a return on equity of 22.52%. The firm had revenue of $1.32 billion for the quarter, compared to analysts' expectations of $1.30 billion. During the same quarter in the previous year, the business posted $0.98 EPS. The company's quarterly revenue was down 3.8% on a year-over-year basis. On average, equities analysts expect that Open Text Corporation will post 3.45 EPS for the current fiscal year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 19th. Investors of record on Friday, September 5th were paid a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date was Friday, September 5th. This is a positive change from Open Text's previous quarterly dividend of $0.26. Open Text's dividend payout ratio (DPR) 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.

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