Royal Bank of Canada Acquires 965,385 Shares of Open Text Corporation $OTEX

Royal Bank of Canada boosted its stake in shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) by 10.9% during the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 9,843,494 shares of the software maker’s stock after buying an additional 965,385 shares during the period. Royal Bank of Canada owned approximately 4.06% of Open Text worth $218,920,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Goldman Sachs Group Inc. increased its position in shares of Open Text by 75.8% during the first quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker’s stock worth $36,307,000 after acquiring an additional 619,527 shares in the last quarter. United Services Automobile Association acquired a new position in Open Text in the 1st quarter worth $213,000. EverSource Wealth Advisors LLC boosted its stake in Open Text by 39.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock worth $59,000 after purchasing an additional 570 shares during the period. Cerity Partners LLC increased its holdings in Open Text by 3.4% during the 2nd quarter. Cerity Partners LLC now owns 49,003 shares of the software maker’s stock worth $1,431,000 after purchasing an additional 1,612 shares in the last quarter. Finally, Qube Research & Technologies Ltd raised its stake in shares of Open Text by 16.8% in the 2nd quarter. Qube Research & Technologies Ltd now owns 46,500 shares of the software maker’s stock valued at $1,360,000 after purchasing an additional 6,700 shares during the period. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text Price Performance

NASDAQ:OTEX opened at $25.88 on Thursday. Open Text Corporation has a 52-week low of $19.77 and a 52-week high of $39.90. The company has a market cap of $6.27 billion, a P/E ratio of 12.62 and a beta of 1.04. The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.94 and a current ratio of 0.94. The stock’s 50-day simple moving average is $22.74 and its 200 day simple moving average is $23.87.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, beating the consensus estimate of $0.94 by $0.07. The firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Open Text had a return on equity of 24.77% and a net margin of 9.91%.The business’s quarterly revenue was up 2.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.82 earnings per share. As a group, sell-side analysts forecast that Open Text Corporation will post 4.05 EPS for the current fiscal year.

Open Text Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Stockholders of record on Friday, June 5th were issued a $0.275 dividend. This represents a $1.10 annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend was Friday, June 5th. Open Text’s dividend payout ratio is presently 53.66%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on OTEX. UBS Group set a $25.00 price target on Open Text in a report on Friday, May 8th. Scotia dropped their target price on Open Text from $50.00 to $40.00 and set a “sector outperform” rating on the stock in a research report on Friday, May 8th. National Bank Financial cut their target price on Open Text from $45.00 to $33.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 27th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Open Text in a research report on Wednesday, June 24th. Finally, Citigroup decreased their price target on shares of Open Text from $26.00 to $25.00 and set a “neutral” rating for the company in a research note on Friday, May 8th. Four equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat, Open Text presently has an average rating of “Hold” and a consensus target price of $33.67.

Open Text Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.