Royce & Associates LP Cuts Position in Open Text Co. (NASDAQ:OTEX)

Royce & Associates LP cut its holdings in Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 46.3% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 105,735 shares of the software maker’s stock after selling 91,227 shares during the period. Royce & Associates LP’s holdings in Open Text were worth $3,520,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of OTEX. Ridgewood Investments LLC bought a new position in Open Text in the 2nd quarter valued at $30,000. Blue Trust Inc. boosted its holdings in shares of Open Text by 435.7% in the 3rd quarter. Blue Trust Inc. now owns 975 shares of the software maker’s stock worth $32,000 after buying an additional 793 shares during the last quarter. Kimelman & Baird LLC bought a new position in Open Text during the second quarter valued at about $36,000. Cromwell Holdings LLC increased its holdings in Open Text by 29.6% during the third quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker’s stock worth $55,000 after buying an additional 380 shares during the last quarter. Finally, UniSuper Management Pty Ltd raised its position in Open Text by 105.3% in the first quarter. UniSuper Management Pty Ltd now owns 3,900 shares of the software maker’s stock worth $151,000 after acquiring an additional 2,000 shares during the period. 70.37% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages have recently issued reports on OTEX. BMO Capital Markets decreased their price target on shares of Open Text from $33.00 to $32.00 and set a “market perform” rating for the company in a research note on Friday, November 1st. Citigroup decreased their target price on Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a research report on Friday, November 1st. Barclays dropped their price target on Open Text from $36.00 to $34.00 and set an “equal weight” rating on the stock in a research report on Friday, November 1st. TD Securities decreased their price objective on Open Text from $40.00 to $38.00 and set a “buy” rating for the company in a report on Friday, November 1st. Finally, National Bank Financial downgraded shares of Open Text from an “outperform” rating to a “sector perform” rating in a report on Friday, August 2nd. Eight investment analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $35.90.

Open Text Stock Down 2.0 %

Shares of NASDAQ OTEX opened at $28.25 on Tuesday. The business has a 50-day simple moving average of $32.21 and a two-hundred day simple moving average of $31.11. Open Text Co. has a 52 week low of $27.50 and a 52 week high of $45.47. The company has a market cap of $7.51 billion, a P/E ratio of 16.33 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.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 EPS for the quarter, beating the consensus estimate of $0.80 by $0.13. Open Text had a net margin of 8.35% and a return on equity of 24.34%. The company had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.28 billion. During the same quarter in the previous year, the company earned $0.90 earnings per share. Open Text’s revenue for the quarter was down 11.0% on a year-over-year basis. Research analysts anticipate that Open Text Co. will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be paid a dividend of $0.262 per share. This is a positive change from Open Text’s previous quarterly dividend of $0.19. The ex-dividend date is Friday, November 29th. This represents a $1.05 annualized dividend and a yield of 3.71%. Open Text’s dividend payout ratio (DPR) is currently 60.69%.

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.