Bank of Montreal Can Lowers Stock Position in Open Text Co. (NASDAQ:OTEX)

Bank of Montreal Can lessened its position in Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 20.4% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 4,353,573 shares of the software maker’s stock after selling 1,117,045 shares during the period. Bank of Montreal Can owned approximately 1.63% of Open Text worth $129,409,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of the stock. FIL Ltd increased its stake in Open Text by 25.7% in the 4th quarter. FIL Ltd now owns 9,058,024 shares of the software maker’s stock valued at $380,696,000 after purchasing an additional 1,853,891 shares in the last quarter. Cooke & Bieler LP grew its holdings in Open Text by 18.6% in the second quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock valued at $166,325,000 after purchasing an additional 867,978 shares during the period. The Manufacturers Life Insurance Company increased its position in Open Text by 73.6% during the fourth quarter. The Manufacturers Life Insurance Company now owns 1,852,184 shares of the software maker’s stock worth $77,970,000 after purchasing an additional 785,157 shares during the last quarter. JARISLOWSKY FRASER Ltd raised its stake in Open Text by 5.1% during the second quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock worth $471,415,000 after purchasing an additional 767,822 shares during the period. Finally, National Bank of Canada FI boosted its holdings in shares of Open Text by 17.5% in the 2nd quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock valued at $120,390,000 after purchasing an additional 599,790 shares during the last quarter. 70.37% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages recently weighed in on OTEX. Barclays cut their target price on Open Text from $38.00 to $36.00 and set an “equal weight” rating on the stock in a research report on Monday, August 5th. National Bank Financial lowered shares of Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. BMO Capital Markets reduced their price objective on shares of Open Text from $38.00 to $33.00 and set a “market perform” rating on the stock in a research note on Friday, August 2nd. Citigroup dropped their target price on shares of Open Text from $37.00 to $32.00 and set a “neutral” rating for the company in a research report on Wednesday, June 26th. Finally, CIBC decreased their price target on Open Text from $36.00 to $33.00 and set a “neutral” rating for the company in a research note on Friday, July 19th. Eight investment analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $38.60.

Open Text Stock Performance

Shares of OTEX opened at $33.10 on Tuesday. Open Text Co. has a 12-month low of $27.50 and a 12-month high of $45.47. The company has a debt-to-equity ratio of 1.51, a current ratio of 0.81 and a quick ratio of 0.81. The stock has a market capitalization of $8.93 billion, a P/E ratio of 53.39 and a beta of 1.11. The firm’s 50 day moving average is $31.42 and its 200-day moving average is $32.49.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, August 1st. The software maker reported $0.98 EPS for the quarter, topping analysts’ consensus estimates of $0.93 by $0.05. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.41 billion. Open Text had a return on equity of 25.00% and a net margin of 8.06%. The business’s quarterly revenue was down 8.6% compared to the same quarter last year. During the same period last year, the company posted $0.79 EPS. Equities research analysts anticipate that Open Text Co. will post 3.23 EPS for the current fiscal year.

Open Text Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 20th. Stockholders of record on Friday, August 30th were issued a dividend of $0.192 per share. The ex-dividend date was Friday, August 30th. This represents a $0.77 dividend on an annualized basis and a dividend yield of 2.32%. Open Text’s dividend payout ratio is currently 169.35%.

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.