Royal Bank of Canada Has $201.48 Million Stock Position in Open Text Co. (NASDAQ:OTEX)

Royal Bank of Canada reduced its holdings in Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 33.4% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 7,114,395 shares of the software maker’s stock after selling 3,563,047 shares during the period. Royal Bank of Canada’s holdings in Open Text were worth $201,480,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of OTEX. Assenagon Asset Management S.A. lifted its stake in Open Text by 5.6% in the 4th quarter. Assenagon Asset Management S.A. now owns 19,921 shares of the software maker’s stock worth $563,000 after acquiring an additional 1,049 shares in the last quarter. Wedge Capital Management L L P NC purchased a new stake in Open Text in the 4th quarter worth about $2,372,000. Canoe Financial LP lifted its stake in Open Text by 127.3% in the 4th quarter. Canoe Financial LP now owns 150,000 shares of the software maker’s stock worth $4,242,000 after acquiring an additional 84,000 shares in the last quarter. Avior Wealth Management LLC lifted its stake in Open Text by 11.5% in the 4th quarter. Avior Wealth Management LLC now owns 44,662 shares of the software maker’s stock worth $1,265,000 after acquiring an additional 4,600 shares in the last quarter. Finally, DGS Capital Management LLC lifted its stake in Open Text by 2.0% in the 4th quarter. DGS Capital Management LLC now owns 26,477 shares of the software maker’s stock worth $750,000 after acquiring an additional 530 shares in the last quarter. 70.37% of the stock is owned by hedge funds and other institutional investors.

Open Text Stock Performance

Shares of NASDAQ OTEX opened at $28.14 on Friday. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.87 and a current ratio of 0.87. The firm has a market cap of $7.31 billion, a price-to-earnings ratio of 11.44 and a beta of 1.15. The business’s 50-day simple moving average is $26.04 and its 200-day simple moving average is $27.69. Open Text Co. has a 52 week low of $22.79 and a 52 week high of $34.20.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Wednesday, April 30th. The software maker reported $0.82 EPS for the quarter, beating analysts’ consensus estimates of $0.81 by $0.01. The business had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.28 billion. Open Text had a return on equity of 23.23% and a net margin of 12.21%. The firm’s revenue for the quarter was down 13.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.94 EPS. As a group, equities research analysts expect that Open Text Co. will post 3.45 earnings per share for the current fiscal year.

Open Text Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 20th. Stockholders of record on Friday, June 6th will be issued a dividend of $0.2625 per share. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.73%. The ex-dividend date of this dividend is Friday, June 6th. Open Text’s dividend payout ratio is 42.86%.

Wall Street Analysts Forecast Growth

OTEX has been the subject of several research analyst reports. Barclays reduced their price objective on Open Text from $36.00 to $29.00 and set an “equal weight” rating for the company in a research note on Monday, April 21st. BMO Capital Markets cut their price target on Open Text from $30.00 to $28.00 and set a “market perform” rating for the company in a research note on Friday, May 2nd. Royal Bank of Canada cut their price target on Open Text from $31.00 to $30.00 and set a “sector perform” rating for the company in a research note on Tuesday, April 22nd. Scotiabank cut their price target on Open Text from $35.00 to $30.00 and set a “sector perform” rating for the company in a research note on Monday, April 28th. Finally, Citigroup raised their price target on Open Text from $29.00 to $43.00 and gave the stock a “negative” rating in a research note on Friday, May 2nd. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and three have assigned a buy rating to the company. According to MarketBeat.com, Open Text has an average rating of “Hold” and a consensus price target of $32.30.

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.