Wedge Capital Management L L P NC Grows Stake in Open Text Corporation $OTEX

Key Points

• Wedge Capital Management increased its Open Text stake by 44% in the second quarter, acquiring 59,922 additional shares for a total holding of 196,153 shares valued at approximately $4.35 million. Institutional investors collectively own 70.37% of the company.
• Analysts remain cautious, with Open Text receiving a consensus “Hold” rating and an average price target of $32.46 after several firms lowered targets, though three analysts maintain Buy ratings.
• Open Text exceeded quarterly expectations, reporting $1.23 in earnings per share and $1.33 billion in revenue, while quarterly revenue rose 2.9% year over year. The company declared a quarterly dividend of $0.28, equivalent to a 4.7% annualized yield.

Wedge Capital Management L L P NC grew its stake in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC by 44.0% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 196,153 shares of the software maker's stock after purchasing an additional 59,922 shares during the quarter. Wedge Capital Management L L P NC owned 0.08% of Open Text worth $4,345,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently modified their holdings of the company. CIBC Private Wealth Group LLC acquired a new position in Open Text during the 3rd quarter worth approximately $33,000. Caitong International Asset Management Co. Ltd grew its position in 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 valued at $52,000 after acquiring an additional 1,580 shares in the last quarter. WealthCollab LLC grew its position in Open Text by 39.5% in the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock valued at $48,000 after acquiring an additional 464 shares in the last quarter. Osaic Holdings Inc. raised its stake 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 valued at $52,000 after purchasing an additional 937 shares during the period. Finally, Barclays PLC lifted its position in shares of Open Text by 55.5% during the fourth quarter. Barclays PLC now owns 1,854 shares of the software maker's stock worth $60,000 after purchasing an additional 662 shares in the last quarter. Hedge funds and other institutional investors own 70.37% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently weighed in on OTEX shares. National Bank Financial decreased their target price on shares of Open Text from $45.00 to $33.00 and set an "outperform" rating for the company in a research note on Wednesday, May 27th. Scotiabank dropped 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 research note on Friday, August 7th. Weiss Ratings reissued a "hold (c-)" rating on shares of Open Text in a research report on Wednesday, June 24th. Scotia lowered their target price on Open Text from $40.00 to $33.00 and set a "sector outperform" rating for the company in a research note on Friday, August 7th. Finally, Citigroup raised their target price on Open Text from $25.00 to $28.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. Three research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, Open Text has a consensus rating of "Hold" and an average price target of $32.46.

Open Text Stock Performance

Shares of OTEX stock opened at $23.95 on Thursday. The stock has a market capitalization of $5.80 billion, a price-to-earnings ratio of 9.28 and a beta of 1.03. Open Text Corporation has a one year low of $19.77 and a one year high of $39.90. The company's 50-day simple moving average is $23.03 and its 200-day simple moving average is $23.47. 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 announced its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.21. Open Text had a return on equity of 25.76% and a net margin of 12.26%.The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same period in the previous year, the company earned $0.97 earnings per share. Open Text's quarterly revenue was up 2.9% on a year-over-year basis. Equities analysts anticipate that Open Text Corporation will post 4.32 earnings per share for the current fiscal year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be issued a $0.28 dividend. This is a positive change from Open Text's previous quarterly dividend of $0.28. The ex-dividend date is Friday, September 4th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.7%. Open Text's dividend payout ratio (DPR) is presently 43.41%.

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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