CDAM UK Ltd Sells 107,480 Shares of Open Text Co. (NASDAQ:OTEX)

CDAM UK Ltd lowered its stake in shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 4.6% in the third quarter, HoldingsChannel reports. The fund owned 2,212,637 shares of the software maker’s stock after selling 107,480 shares during the quarter. Open Text makes up about 10.9% of CDAM UK Ltd’s portfolio, making the stock its 3rd largest position. CDAM UK Ltd’s holdings in Open Text were worth $73,637,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of the stock. JARISLOWSKY FRASER Ltd grew its position 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 acquiring an additional 767,822 shares during the period. Vanguard Group Inc. increased its position in Open Text by 1.3% during the 1st 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. The Manufacturers Life Insurance Company raised its holdings in Open Text by 25.1% in the second quarter. The Manufacturers Life Insurance Company now owns 5,578,835 shares of the software maker’s stock valued at $167,277,000 after buying an additional 1,118,479 shares during the period. Cooke & Bieler LP lifted 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 valued at $166,325,000 after buying an additional 867,978 shares in the last quarter. Finally, National Bank of Canada FI grew its stake 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. 70.37% of the stock is owned by institutional investors and hedge funds.

Open Text Stock Up 0.9 %

OTEX stock opened at $29.45 on Monday. The company has a market capitalization of $7.83 billion, a P/E ratio of 17.02 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 twelve month low of $27.50 and a twelve month high of $45.47. The firm has a 50 day simple moving average of $31.89 and a 200-day simple moving average of $31.02.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, October 31st. The software maker reported $0.93 EPS for the quarter, topping the consensus estimate of $0.80 by $0.13. The company had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.28 billion. Open Text had a return on equity of 24.34% and a net margin of 8.35%. The business’s revenue was down 11.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.90 EPS. On average, equities research analysts predict 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 given a dividend of $0.262 per share. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.56%. The ex-dividend date is Friday, November 29th. This is an increase from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio is currently 60.69%.

Analyst Ratings Changes

OTEX has been the topic of a number of research reports. Royal Bank of Canada downgraded shares of Open Text from an “outperform” rating to a “sector perform” rating and cut their target price for the company from $45.00 to $33.00 in a research note on Friday, November 1st. Jefferies Financial Group reduced their price objective on Open Text from $42.00 to $35.00 and set a “buy” rating on the stock in a research note on Friday, August 2nd. National Bankshares lowered Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 target price for the company. in a research note on Friday, August 2nd. Scotiabank reduced 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. Finally, National Bank Financial downgraded shares of Open Text from an “outperform” rating to a “sector perform” rating in a research report on Friday, August 2nd. Eight 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 an average rating of “Hold” and an average price target 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.