MQS Management LLC Takes Position in Open Text Co. (NASDAQ:OTEX)

MQS Management LLC bought a new position in shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) during the 2nd quarter, Holdings Channel reports. The institutional investor bought 8,373 shares of the software maker’s stock, valued at approximately $252,000.

Several other large investors have also recently bought and sold shares of the stock. Letko Brosseau & Associates Inc. raised its stake in shares of Open Text by 11.9% during the 4th quarter. Letko Brosseau & Associates Inc. now owns 2,863,290 shares of the software maker’s stock worth $120,929,000 after purchasing an additional 304,677 shares in the last quarter. Vanguard Group Inc. raised its position in Open Text by 1.3% during the first quarter. Vanguard Group Inc. now owns 10,344,910 shares of the software maker’s stock worth $401,693,000 after acquiring an additional 135,812 shares in the last quarter. Forge First Asset Management Inc. bought a new stake in Open Text during the first quarter worth $2,305,000. Norges Bank acquired a new stake in Open Text in the fourth quarter valued at $139,600,000. Finally, FIL Ltd grew its position in shares of 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 acquiring an additional 1,853,891 shares during the period. 70.37% of the stock is owned by institutional investors and hedge funds.

Open Text Stock Performance

NASDAQ OTEX opened at $32.76 on Friday. The firm has a 50-day moving average price of $31.38 and a two-hundred day moving average price of $32.60. Open Text Co. has a 12-month low of $27.50 and a 12-month high of $45.47. The company has a market capitalization of $8.84 billion, a P/E ratio of 52.84 and a beta of 1.11. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.51.

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

Open Text Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 20th. Investors of record on Friday, August 30th were given a dividend of $0.192 per share. The ex-dividend date was Friday, August 30th. This represents a $0.77 annualized dividend and a yield of 2.34%. Open Text’s dividend payout ratio is 169.35%.

Analyst Upgrades and Downgrades

OTEX has been the topic of a number of research analyst reports. Jefferies Financial Group dropped their target price on shares of Open Text from $42.00 to $35.00 and set a “buy” rating on the stock in a report on Friday, August 2nd. CIBC cut their price objective on Open Text from $36.00 to $33.00 and set a “neutral” rating for the company in a research report on Friday, July 19th. BMO Capital Markets decreased their target price on Open Text from $38.00 to $33.00 and set a “market perform” rating on the stock in a report on Friday, August 2nd. National Bank Financial downgraded Open Text from an “outperform” rating to a “sector perform” rating in a report on Friday, August 2nd. Finally, Barclays reduced their price objective on shares of Open Text from $38.00 to $36.00 and set an “equal weight” rating for the company in a research report on Monday, August 5th. 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, the stock has a consensus rating of “Hold” and an average price target of $38.60.

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.