Ontario Teachers Pension Plan Board Grows Stock Holdings in Open Text Co. (NASDAQ:OTEX)

Ontario Teachers Pension Plan Board increased its stake in shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 105.8% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 39,885 shares of the software maker’s stock after purchasing an additional 20,503 shares during the period. Ontario Teachers Pension Plan Board’s holdings in Open Text were worth $1,328,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently made changes to their positions in OTEX. Mitsubishi UFJ Trust & Banking Corp increased its holdings in Open Text by 3.7% during the first quarter. Mitsubishi UFJ Trust & Banking Corp now owns 182,142 shares of the software maker’s stock valued at $7,010,000 after buying an additional 6,500 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Open Text by 1.3% in the first quarter. Vanguard Group Inc. now owns 10,344,910 shares of the software maker’s stock worth $401,693,000 after purchasing an additional 135,812 shares in the last quarter. UniSuper Management Pty Ltd increased its stake in shares of 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 purchasing an additional 2,000 shares in the last quarter. Guardian Capital LP increased its stake in shares of Open Text by 20.6% in the first quarter. Guardian Capital LP now owns 3,333,632 shares of the software maker’s stock worth $129,478,000 after purchasing an additional 568,527 shares in the last quarter. Finally, Canada Pension Plan Investment Board increased its stake in shares of Open Text by 3.7% in the first quarter. Canada Pension Plan Investment Board now owns 868,775 shares of the software maker’s stock worth $33,743,000 after purchasing an additional 30,895 shares in the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Price Performance

Open Text stock opened at $28.87 on Thursday. The firm has a 50-day moving average price of $32.07 and a 200-day moving average price of $31.04. The firm has a market capitalization of $7.68 billion, a PE ratio of 16.69 and a beta of 1.13. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. Open Text Co. has a 12-month low of $27.50 and a 12-month high of $45.47.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, October 31st. The software maker reported $0.93 earnings per share for the quarter, beating analysts’ consensus estimates 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 analyst estimates of $1.28 billion. During the same quarter last year, the business posted $0.90 EPS. The firm’s revenue for the quarter was down 11.0% on a year-over-year basis. As a group, equities research analysts forecast that Open Text Co. will post 3.37 EPS for the current year.

Open Text Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Stockholders of record on Friday, November 29th will be issued a $0.262 dividend. The ex-dividend date is Friday, November 29th. This represents a $1.05 annualized dividend and a dividend yield of 3.63%. This is a positive change from Open Text’s previous quarterly dividend of $0.19. Open Text’s payout ratio is currently 60.69%.

Wall Street Analyst Weigh In

OTEX has been the subject of a number of analyst reports. BMO Capital Markets reduced their price objective 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. Royal Bank of Canada cut shares of Open Text from an “outperform” rating to a “sector perform” rating and reduced their price objective for the stock from $45.00 to $33.00 in a research note on Friday, November 1st. Citigroup reduced their price objective on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a research note on Friday, November 1st. Scotiabank cut their target price on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a research note on Friday, November 1st. Finally, National Bank Financial cut shares of Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. Eight analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat, Open Text has an average rating of “Hold” and a consensus target price of $35.90.

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.