Wellington Management Group LLP Acquires New Position in Open Text Corporation $OTEX

Key Points

• Wellington Management Group acquired 502,614 shares of Open Text worth approximately $11.1 million, representing about 0.21% of the company. Institutional investors collectively own 70.37% of Open Text.
• Open Text reported quarterly revenue of $1.33 billion and earnings of $1.23 per share, exceeding analyst estimates; revenue increased 2.9% year over year.
• The company maintains a quarterly dividend of $0.28, equivalent to $1.12 annually and a 4.7% yield. Analysts’ average rating is “Hold,” with an average price target of $32.46.

Wellington Management Group LLP bought a new position in shares of Open Text Corporation (NASDAQ:OTEX - Free Report) TSE: OTC during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 502,614 shares of the software maker's stock, valued at approximately $11,120,000. Wellington Management Group LLP owned approximately 0.21% of Open Text at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in the business. Royal Bank of Canada lifted its holdings in Open Text by 10.9% during the first quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker's stock worth $218,920,000 after buying an additional 965,385 shares during the period. Bank of America Corp DE increased its holdings in shares of Open Text by 99.1% in the 1st quarter. Bank of America Corp DE now owns 1,349,545 shares of the software maker's stock valued at $30,014,000 after acquiring an additional 671,572 shares during the period. Sei Investments Co. increased its holdings in shares of Open Text by 47.3% in the 1st quarter. Sei Investments Co. now owns 255,601 shares of the software maker's stock valued at $5,684,000 after acquiring an additional 82,049 shares during the period. Brandes Investment Partners LP raised its position in shares of Open Text by 1.2% in the 4th quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker's stock worth $296,679,000 after acquiring an additional 106,766 shares in the last quarter. Finally, Quantinno Capital Management LP lifted its stake in shares of Open Text by 109.8% during the 1st quarter. Quantinno Capital Management LP now owns 109,717 shares of the software maker's stock worth $2,440,000 after purchasing an additional 57,432 shares during the last quarter. Hedge funds and other institutional investors own 70.37% of the company's stock.

Open Text Stock Performance

Shares of NASDAQ:OTEX opened at $23.95 on Tuesday. Open Text Corporation has a 52-week low of $19.77 and a 52-week high of $39.90. The stock has a market cap of $5.80 billion, a price-to-earnings ratio of 9.28 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. The business has a 50-day moving average price of $23.99 and a 200-day moving average price of $23.35.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last issued 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 return on equity of 25.76% and a net margin of 12.26%.The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the prior year, the firm earned $0.97 earnings per share. Open Text's revenue for the quarter was up 2.9% on a year-over-year basis. Equities analysts predict that Open Text Corporation will post 3.72 EPS for the current year.

Open Text Increases Dividend

The firm also recently disclosed 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. The ex-dividend date is Friday, September 4th. This is an increase from Open Text's previous quarterly dividend of $0.28. 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 currently 43.41%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Zacks Research downgraded Open Text from a "hold" rating to a "strong sell" rating in a research report on Friday, August 21st. Barclays increased their price target on shares of Open Text from $25.00 to $27.00 and gave the company an "equal weight" rating in a research report on Monday, May 11th. Weiss Ratings restated a "hold (c-)" rating on shares of Open Text in a report on Wednesday, June 24th. UBS Group lifted their price objective on shares of Open Text from $25.00 to $27.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Finally, Scotiabank reduced their price objective on shares of 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. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock 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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