Wilmington Savings Fund Society FSB Makes New Investment in Open Text Co. (NASDAQ:OTEX)

Wilmington Savings Fund Society FSB acquired a new stake in shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 14,983 shares of the software maker’s stock, valued at approximately $499,000.

Several other hedge funds also recently made changes to their positions in OTEX. Assenagon Asset Management S.A. raised its position in shares of Open Text by 11.6% during the second quarter. Assenagon Asset Management S.A. now owns 18,550 shares of the software maker’s stock worth $557,000 after purchasing an additional 1,926 shares during the period. Easterly Investment Partners LLC raised its holdings in Open Text by 44.5% during the 2nd quarter. Easterly Investment Partners LLC now owns 482,959 shares of the software maker’s stock worth $14,508,000 after buying an additional 148,738 shares during the period. IMA Advisory Services Inc. purchased a new stake in Open Text during the second quarter valued at about $770,000. Callan Family Office LLC acquired a new position in shares of Open Text in the second quarter worth about $257,000. Finally, Migdal Insurance & Financial Holdings Ltd. purchased a new position in shares of Open Text in the second quarter worth approximately $269,000. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Price Performance

NASDAQ OTEX opened at $29.57 on Tuesday. The company has a 50 day moving average price of $31.17 and a two-hundred day moving average price of $31.02. Open Text Co. has a 12-month low of $27.50 and a 12-month high of $45.47. The stock has a market capitalization of $7.86 billion, a PE ratio of 17.09 and a beta of 1.11. 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 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.28 billion. During the same period in the prior year, the company posted $0.90 earnings per share. Open Text’s revenue for the quarter was down 11.0% on a year-over-year basis. As a group, equities analysts predict that Open Text Co. will post 3.37 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 20th. Shareholders of record on Friday, November 29th will be given a dividend of $0.262 per share. The ex-dividend date of this dividend is Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a yield of 3.54%. This is a boost from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio is presently 60.69%.

Wall Street Analyst Weigh In

Several research firms have weighed in on OTEX. TD Securities lowered their price objective on shares of Open Text from $40.00 to $38.00 and set a “buy” rating on the stock in a research report on Friday, November 1st. BMO Capital Markets dropped their price target on Open Text from $33.00 to $32.00 and set a “market perform” 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 decreased their price objective for the stock from $45.00 to $33.00 in a research report on Friday, November 1st. Citigroup dropped their target price on Open Text from $34.00 to $33.00 and set a “neutral” rating on the stock in a report on Friday, November 1st. Finally, Barclays decreased their price target on shares of Open Text from $36.00 to $34.00 and set an “equal weight” rating for the company in a report on Friday, November 1st. Eight investment analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus 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.