Fmr LLC Reduces Position in Open Text Co. (NASDAQ:OTEX)

Fmr LLC decreased its holdings in Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 9.0% in the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 8,303,950 shares of the software maker’s stock after selling 818,288 shares during the quarter. Fmr LLC’s holdings in Open Text were worth $276,403,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. The Manufacturers Life Insurance Company grew its stake in shares of Open Text by 1.1% in the third quarter. The Manufacturers Life Insurance Company now owns 5,642,455 shares of the software maker’s stock worth $187,952,000 after acquiring an additional 63,620 shares during the period. DRW Securities LLC purchased a new stake in Open Text during the 3rd quarter valued at $313,000. Cerity Partners LLC lifted its holdings in shares of Open Text by 12.6% during the 3rd quarter. Cerity Partners LLC now owns 34,307 shares of the software maker’s stock valued at $1,142,000 after buying an additional 3,844 shares during the period. Citigroup Inc. boosted its stake in shares of Open Text by 49.1% in the 3rd quarter. Citigroup Inc. now owns 147,185 shares of the software maker’s stock worth $4,905,000 after buying an additional 48,496 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its holdings in shares of Open Text by 1.8% in the third quarter. Charles Schwab Investment Management Inc. now owns 672,532 shares of the software maker’s stock worth $22,411,000 after acquiring an additional 11,965 shares during the period. Institutional investors own 70.37% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. BMO Capital Markets lowered their target price on Open Text from $33.00 to $32.00 and set a “market perform” rating on the stock in a report on Friday, November 1st. Citigroup dropped their price objective on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a report on Friday, November 1st. TD Securities reduced their target price on shares of Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a report on Friday, November 1st. Scotiabank dropped their price target on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research note on Friday, November 1st. Finally, Barclays reduced their price objective on Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a research note on Friday, November 1st. Eight analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $35.90.

Open Text Price Performance

NASDAQ:OTEX opened at $30.43 on Monday. The stock has a market cap of $8.09 billion, a PE ratio of 17.59 and a beta of 1.13. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.54. The business’s 50-day simple moving average is $31.70 and its two-hundred day simple moving average is $31.02. Open Text Co. has a 52 week low of $27.50 and a 52 week high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 EPS for the quarter, topping analysts’ consensus estimates of $0.80 by $0.13. The company had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.28 billion. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The firm’s revenue was down 11.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.90 EPS. As a group, analysts forecast that Open Text Co. will post 3.37 EPS for the current fiscal year.

Open Text Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Shareholders of record on Friday, November 29th will be issued a $0.262 dividend. This is an increase from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 dividend on an annualized basis and a yield of 3.44%. The ex-dividend date of this dividend is Friday, November 29th. Open Text’s payout ratio is currently 60.69%.

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.