DRW Securities LLC Purchases New Position in Open Text Co. (NASDAQ:OTEX)

DRW Securities LLC purchased a new stake in Open Text Co. (NASDAQ:OTEX) (TSE:OTC) during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 9,400 shares of the software maker’s stock, valued at approximately $313,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Brandes Investment Partners LP raised its stake in Open Text by 236.8% during the 2nd quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock worth $55,059,000 after acquiring an additional 1,290,011 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Open Text by 25.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock valued at $167,277,000 after purchasing an additional 1,118,479 shares during the last quarter. Cooke & Bieler LP boosted its position in shares of Open Text by 18.6% in the 2nd 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. JARISLOWSKY FRASER Ltd grew its stake in Open Text by 5.1% during the 2nd quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock worth $471,415,000 after buying an additional 767,822 shares during the last quarter. Finally, National Bank of Canada FI increased its position in Open Text by 17.5% during the second quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock worth $120,390,000 after buying an additional 599,790 shares during the period. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Trading Down 0.9 %

NASDAQ:OTEX opened at $30.02 on Wednesday. Open Text Co. has a 1 year low of $27.50 and a 1 year high of $45.47. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79. The stock has a fifty day moving average price of $31.81 and a two-hundred day moving average price of $31.02. The stock has a market capitalization of $7.98 billion, a price-to-earnings ratio of 17.35 and a beta of 1.13.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.80 by $0.13. The business had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.28 billion. Open Text had a net margin of 8.35% and a return on equity of 24.34%. The business’s revenue was down 11.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.90 EPS. As a group, sell-side analysts anticipate that Open Text Co. will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be issued a $0.262 dividend. The ex-dividend date of this dividend is Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.49%. This is a boost from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio is currently 60.69%.

Wall Street Analysts Forecast Growth

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

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.