Point72 Asset Management L.P. Takes Position in Open Text Co. (NASDAQ:OTEX)

Point72 Asset Management L.P. acquired a new stake in Open Text Co. (NASDAQ:OTEX) (TSE:OTC) in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The fund acquired 9,732 shares of the software maker’s stock, valued at approximately $324,000.

A number of other large investors have also recently bought and sold shares of the business. Brandes Investment Partners LP lifted its position in shares of Open Text by 236.8% in the second quarter. Brandes Investment Partners LP now owns 1,834,835 shares of the software maker’s stock worth $55,059,000 after buying an additional 1,290,011 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in 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 worth $167,277,000 after purchasing an additional 1,118,479 shares during the last quarter. Cooke & Bieler LP boosted its position in Open Text by 18.6% during the second quarter. Cooke & Bieler LP now owns 5,536,769 shares of the software maker’s stock worth $166,325,000 after purchasing an additional 867,978 shares during the period. JARISLOWSKY FRASER Ltd grew its holdings in Open Text by 5.1% during the second quarter. JARISLOWSKY FRASER Ltd now owns 15,702,510 shares of the software maker’s stock valued at $471,415,000 after purchasing an additional 767,822 shares during the last quarter. Finally, National Bank of Canada FI raised its position in shares of Open Text by 17.5% in the second quarter. National Bank of Canada FI now owns 4,021,893 shares of the software maker’s stock valued at $120,390,000 after purchasing an additional 599,790 shares during the period. 70.37% of the stock is currently owned by institutional investors.

Open Text Stock Performance

Shares of NASDAQ OTEX opened at $29.89 on Friday. The firm has a market capitalization of $7.95 billion, a price-to-earnings ratio of 17.28 and a beta of 1.11. Open Text Co. has a one year low of $27.50 and a one year high of $45.47. The business has a fifty day simple moving average of $31.25 and a 200 day simple moving average of $31.01. 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 (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data 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. 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 prior year, the company posted $0.90 EPS. The business’s revenue was down 11.0% on a year-over-year basis. Sell-side analysts expect that Open Text Co. will post 3.37 EPS for the current year.

Open Text Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 20th. Stockholders of record on Friday, November 29th will be paid a $0.262 dividend. This is a positive change from Open Text’s previous quarterly dividend of $0.19. This represents a $1.05 annualized dividend and a dividend yield of 3.51%. The ex-dividend date of this dividend is Friday, November 29th. Open Text’s dividend payout ratio is currently 60.69%.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on OTEX shares. Citigroup decreased their price objective on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a report on Friday, November 1st. TD Securities lowered their price target on Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a research report on Friday, November 1st. Royal Bank of Canada lowered Open Text from an “outperform” rating to a “sector perform” rating and dropped their price objective for the stock from $45.00 to $33.00 in a research note on Friday, November 1st. BMO Capital Markets decreased their target price on 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. Finally, Scotiabank dropped their price target on Open Text from $40.00 to $35.00 and set a “sector perform” rating on the stock in a research report on Friday, November 1st. Eight equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Open Text currently has an average rating of “Hold” and an average 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.