Toronto Dominion Bank Acquires 362,422 Shares of Open Text Co. (NASDAQ:OTEX)

Toronto Dominion Bank raised its stake in shares of Open Text Co. (NASDAQ:OTEX - Free Report) TSE: OTC by 169.6% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 576,105 shares of the software maker's stock after buying an additional 362,422 shares during the quarter. Toronto Dominion Bank owned about 0.22% of Open Text worth $19,173,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently modified their holdings of the company. Ridgewood Investments LLC purchased a new position in Open Text during the second quarter valued at $30,000. Blue Trust Inc. increased its holdings in shares of Open Text by 435.7% in the third quarter. Blue Trust Inc. now owns 975 shares of the software maker's stock worth $32,000 after purchasing an additional 793 shares during the last quarter. Kimelman & Baird LLC purchased a new stake in shares of Open Text in the second quarter worth about $36,000. Cromwell Holdings LLC boosted its stake in Open Text by 29.6% during the third quarter. Cromwell Holdings LLC now owns 1,663 shares of the software maker's stock valued at $55,000 after buying an additional 380 shares during the last quarter. Finally, Essex LLC purchased a new position in Open Text during the 3rd quarter valued at approximately $210,000. Institutional investors own 70.37% of the company's stock.

Wall Street Analyst Weigh In

OTEX has been the topic of several research reports. Royal Bank of Canada cut shares of Open Text from an "outperform" rating to a "sector perform" rating and reduced their price target for the stock from $45.00 to $33.00 in a research report on Friday, November 1st. TD Securities lowered their price target on shares of Open Text from $40.00 to $38.00 and set a "buy" rating for the company in a report on Friday, November 1st. BMO Capital Markets dropped their price target on Open Text from $33.00 to $32.00 and set a "market perform" rating for the company in a research report on Friday, November 1st. Citigroup decreased their price objective on Open Text from $34.00 to $33.00 and set a "neutral" rating on the stock in a research report on Friday, November 1st. Finally, Scotiabank dropped their target price on Open Text from $40.00 to $35.00 and set a "sector perform" rating for the company in a report on Friday, November 1st. Eight research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $35.90.

Open Text Trading Down 1.2 %

OTEX stock traded down $0.37 during midday trading on Friday, reaching $29.52. The company's stock had a trading volume of 452,567 shares, compared to its average volume of 644,973. The firm has a market capitalization of $7.85 billion, a price-to-earnings ratio of 17.06 and a beta of 1.11. Open Text Co. has a 1 year low of $27.50 and a 1 year high of $45.47. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.79 and a current ratio of 0.79. The stock has a fifty day simple moving average of $31.25 and a two-hundred day simple moving average of $31.01.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its quarterly 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 for the quarter, compared to the consensus estimate of $1.28 billion. Open Text had a net margin of 8.35% and a return on equity of 24.34%. The firm's revenue was down 11.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.90 EPS. On average, equities research analysts predict that Open Text Co. will post 3.37 EPS for the current year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be issued a $0.262 dividend. This is a positive change from Open Text's previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Friday, November 29th. This represents a $1.05 dividend on an annualized basis and a dividend yield of 3.55%. Open Text's payout ratio is presently 60.69%.

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.