Toronto Dominion Bank Increases Stake in Open Text Co. (NASDAQ:OTEX)

Toronto Dominion Bank boosted its holdings in shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 51.5% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 213,683 shares of the software maker’s stock after buying an additional 72,633 shares during the quarter. Toronto Dominion Bank’s holdings in Open Text were worth $6,419,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of OTEX. Chase Investment Counsel Corp raised its stake in shares of Open Text by 6.9% in the first quarter. Chase Investment Counsel Corp now owns 8,232 shares of the software maker’s stock valued at $319,000 after acquiring an additional 528 shares in the last quarter. Optiver Holding B.V. purchased a new stake in Open Text during the 4th quarter worth about $27,000. Headlands Technologies LLC acquired a new stake in Open Text in the 1st quarter valued at about $32,000. Vanguard Personalized Indexing Management LLC boosted its stake in shares of Open Text by 5.3% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 17,436 shares of the software maker’s stock valued at $524,000 after buying an additional 874 shares during the period. Finally, Ridgewood Investments LLC acquired a new position in shares of Open Text during the second quarter worth about $30,000. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Stock Performance

Shares of Open Text stock opened at $33.09 on Friday. The firm’s fifty day simple moving average is $31.59 and its 200-day simple moving average is $32.43. Open Text Co. has a 12 month low of $27.50 and a 12 month high of $45.47. The stock has a market capitalization of $8.84 billion, a price-to-earnings ratio of 53.37 and a beta of 1.11. The company has a debt-to-equity ratio of 1.51, a current ratio of 0.81 and a quick ratio of 0.81.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, August 1st. The software maker reported $0.98 EPS for the quarter, beating analysts’ consensus estimates of $0.93 by $0.05. Open Text had a net margin of 8.06% and a return on equity of 25.00%. 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 prior year, the company earned $0.79 earnings per share. The business’s revenue was down 8.6% compared to the same quarter last year. As a group, equities analysts forecast that Open Text Co. will post 3.23 earnings per share for the current year.

Open Text Cuts Dividend

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

Analyst Ratings Changes

A number of brokerages recently issued reports on OTEX. National Bankshares downgraded shares of Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price target for the company. in a research note on Friday, August 2nd. Citigroup boosted their target price on shares of Open Text from $32.00 to $34.00 and gave the stock a “neutral” rating in a research note on Wednesday. CIBC cut their price target on Open Text from $36.00 to $33.00 and set a “neutral” rating on the stock in a research note on Friday, July 19th. National Bank Financial cut Open Text from an “outperform” rating to a “sector perform” rating in a research report on Friday, August 2nd. Finally, Jefferies Financial Group decreased their target price on Open Text from $42.00 to $35.00 and set a “buy” rating for the company in a research note on Friday, August 2nd. Eight analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $38.80.

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.