Letko Brosseau & Associates Inc. Buys 566,150 Shares of Open Text Co. (NASDAQ:OTEX)

Letko Brosseau & Associates Inc. grew its stake in shares of Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 16.8% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 3,929,040 shares of the software maker’s stock after buying an additional 566,150 shares during the period. Open Text accounts for about 2.2% of Letko Brosseau & Associates Inc.’s investment portfolio, making the stock its 13th largest position. Letko Brosseau & Associates Inc. owned about 1.46% of Open Text worth $117,956,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Boston Partners raised its position in shares of Open Text by 0.5% during the fourth quarter. Boston Partners now owns 60,137 shares of the software maker’s stock valued at $2,527,000 after buying an additional 318 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Open Text by 18.0% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the software maker’s stock valued at $92,000 after purchasing an additional 334 shares in the last quarter. Chase Investment Counsel Corp grew its holdings in shares of Open Text by 6.9% in the first quarter. Chase Investment Counsel Corp now owns 8,232 shares of the software maker’s stock valued at $319,000 after purchasing an additional 528 shares in the last quarter. Optiver Holding B.V. purchased a new position in shares of Open Text in the fourth quarter valued at $27,000. Finally, Headlands Technologies LLC purchased a new position in shares of Open Text in the first quarter valued at $32,000. Institutional investors own 70.37% of the company’s stock.

Open Text Trading Down 1.3 %

Shares of OTEX traded down $0.42 during trading hours on Friday, reaching $31.38. 692,856 shares of the company traded hands, compared to its average volume of 671,872. The firm has a market cap of $8.47 billion, a price-to-earnings ratio of 50.61 and a beta of 1.11. Open Text Co. has a 12-month low of $27.50 and a 12-month high of $45.47. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.51. The stock’s fifty day moving average price is $31.12 and its 200 day moving average price is $33.12.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, August 1st. The software maker reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.05. The firm had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.41 billion. Open Text had a return on equity of 25.00% and a net margin of 8.06%. The firm’s quarterly revenue was down 8.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.79 earnings per share. Sell-side analysts forecast that Open Text Co. will post 3.18 earnings per share for the current year.

Open Text Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 20th. Investors of record on Friday, August 30th will be issued a $0.192 dividend. The ex-dividend date is Friday, August 30th. This represents a $0.77 annualized dividend and a dividend yield of 2.45%. Open Text’s payout ratio is currently 169.35%.

Analyst Ratings Changes

A number of research analysts recently weighed in on OTEX shares. Citigroup cut their target price on shares of Open Text from $37.00 to $32.00 and set a “neutral” rating for the company in a report on Wednesday, June 26th. BMO Capital Markets cut their target price on shares of Open Text from $38.00 to $33.00 and set a “market perform” rating for the company in a report on Friday, August 2nd. National Bankshares lowered shares of Open Text from an “outperform” rating to a “sector perform” rating and set a $38.00 price objective for the company. in a research note on Friday, August 2nd. National Bank Financial lowered shares of Open Text from an “outperform” rating to a “sector perform” rating in a research note on Friday, August 2nd. Finally, Barclays dropped their price objective on shares of Open Text from $38.00 to $36.00 and set an “equal weight” rating for the company in a research note on Monday, August 5th. Eight research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $38.60.

Open Text 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.