Scheer Rowlett & Associates Investment Management Ltd. Buys 2,240 Shares of Open Text Co. (NASDAQ:OTEX)

Scheer Rowlett & Associates Investment Management Ltd. grew its holdings in Open Text Co. (NASDAQ:OTEX) (TSE:OTC) by 1.2% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 196,899 shares of the software maker’s stock after purchasing an additional 2,240 shares during the period. Scheer Rowlett & Associates Investment Management Ltd. owned approximately 0.07% of Open Text worth $6,554,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. Ontario Teachers Pension Plan Board grew its stake in Open Text by 105.8% during the third quarter. Ontario Teachers Pension Plan Board now owns 39,885 shares of the software maker’s stock valued at $1,328,000 after acquiring an additional 20,503 shares in the last quarter. Natixis Advisors LLC bought a new stake in shares of Open Text in the 3rd quarter worth approximately $1,467,000. Oppenheimer Asset Management Inc. bought a new stake in shares of Open Text in the 3rd quarter worth approximately $332,000. Saturna Capital Corp lifted its holdings in shares of Open Text by 9.7% in the 3rd quarter. Saturna Capital Corp now owns 41,440 shares of the software maker’s stock worth $1,379,000 after acquiring an additional 3,650 shares during the last quarter. Finally, Access Investment Management LLC bought a new stake in shares of Open Text in the 3rd quarter worth approximately $6,509,000. Institutional investors own 70.37% of the company’s stock.

Open Text Price Performance

Shares of OTEX traded down $0.18 during trading hours on Wednesday, reaching $28.38. 71,005 shares of the stock traded hands, compared to its average volume of 642,960. Open Text Co. has a 52-week low of $27.50 and a 52-week high of $45.47. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.54. The company has a market cap of $7.55 billion, a P/E ratio of 16.51 and a beta of 1.13. The company’s 50-day moving average price is $32.07 and its two-hundred day moving average price is $31.04.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, October 31st. The software maker reported $0.93 earnings per share 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 analyst estimates of $1.28 billion. During the same quarter in the prior year, the business earned $0.90 earnings per share. Open Text’s revenue for the quarter was down 11.0% on a year-over-year basis. On average, analysts anticipate that Open Text Co. will post 3.37 earnings per share for the current year.

Open Text Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 20th. Stockholders of record on Friday, November 29th will be issued a $0.262 dividend. This represents a $1.05 annualized dividend and a dividend yield of 3.69%. The ex-dividend date is Friday, November 29th. This is a positive change from Open Text’s previous quarterly dividend of $0.19. Open Text’s dividend payout ratio (DPR) is 60.69%.

Analyst Upgrades and Downgrades

OTEX has been the subject of a number of recent analyst reports. Scotiabank lowered their price target on shares of Open Text from $40.00 to $35.00 and set a “sector perform” rating for the company in a report on Friday, November 1st. Citigroup decreased their price objective on shares of Open Text from $34.00 to $33.00 and set a “neutral” rating for the company in a report on Friday, November 1st. Barclays decreased their price objective 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. 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. Finally, TD Securities reduced their target price 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. Eight investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, Open Text currently has an average rating of “Hold” and an average target price 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.