Open Text (NASDAQ:OTEX) Price Target Lowered to $33.00 at Scotia

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price reduced by equities research analysts at Scotia from $40.00 to $33.00 in a research report issued to clients and investors on Friday,BayStreet.CA reports. The firm currently has a “sector outperform” rating on the software maker’s stock. Scotia’s price objective would suggest a potential upside of 33.52% from the stock’s previous close.

Several other research analysts have also issued reports on OTEX. UBS Group set a $25.00 price objective on Open Text in a research note on Friday, May 8th. Scotiabank set a $33.00 target price on shares of Open Text in a research note on Friday. Barclays upped their target price on shares of Open Text from $25.00 to $27.00 and gave the stock an “equal weight” rating in a report on Monday, May 11th. Royal Bank Of Canada dropped their target price on shares of Open Text from $30.00 to $27.00 and set a “sector perform” rating for the company in a research report on Friday, May 8th. Finally, National Bank Financial cut their price target on shares of Open Text from $45.00 to $33.00 and set an “outperform” rating for the company in a report on Wednesday, May 27th. Three investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $32.29.

Open Text Price Performance

NASDAQ:OTEX traded down $0.94 during mid-day trading on Friday, hitting $24.71. The company’s stock had a trading volume of 1,939,602 shares, compared to its average volume of 2,162,387. The company has a market capitalization of $5.98 billion, a price-to-earnings ratio of 12.04 and a beta of 1.03. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.56. Open Text has a fifty-two week low of $19.77 and a fifty-two week high of $39.90. The stock has a fifty day moving average of $23.03 and a 200-day moving average of $23.60.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, beating analysts’ consensus estimates of $1.02 by $0.21. Open Text had a return on equity of 24.77% and a net margin of 9.91%.The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the previous year, the business earned $0.97 earnings per share. The company’s quarterly revenue was up 2.9% on a year-over-year basis. As a group, equities analysts forecast that Open Text will post 4.05 EPS for the current fiscal year.

Institutional Investors Weigh In On Open Text

A number of hedge funds have recently added to or reduced their stakes in the stock. Tidal Investments LLC raised its holdings in Open Text by 2.6% in the 2nd quarter. Tidal Investments LLC now owns 18,059 shares of the software maker’s stock valued at $527,000 after acquiring an additional 460 shares in the last quarter. WealthCollab LLC grew its holdings in shares of Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock worth $48,000 after purchasing an additional 464 shares in the last quarter. Byrne Asset Management LLC grew its holdings in shares of Open Text by 11.5% during the 2nd quarter. Byrne Asset Management LLC now owns 4,837 shares of the software maker’s stock worth $107,000 after purchasing an additional 500 shares in the last quarter. Vident Advisory LLC increased its position in shares of Open Text by 3.7% in the fourth quarter. Vident Advisory LLC now owns 15,715 shares of the software maker’s stock worth $512,000 after purchasing an additional 555 shares during the period. Finally, EverSource Wealth Advisors LLC raised its stake in Open Text by 39.7% in the second quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock valued at $59,000 after purchasing an additional 570 shares in the last quarter. Institutional investors own 70.37% of the company’s stock.

Open Text News Summary

Here are the key news stories impacting Open Text this week:

• Positive Sentiment: OpenText reported fourth-quarter revenue of $1.349 billion, up 2.9% year over year and above the $1.29 billion consensus estimate. Adjusted earnings per share of $1.23 exceeded expectations of $1.02. Cloud revenue increased 6.0% to $503 million, while fiscal-year cloud revenue reached $1.96 billion, up 5.5%. OpenText Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Profitability also improved: GAAP net income rose sharply, adjusted EBITDA reached $507 million with a 37.6% margin, and EPS increased from $0.97 in the prior-year quarter. These results may support the stock’s valuation and reinforce management’s focus on cloud and recurring revenue. Open Text Corporation 2026 Q4 Results Earnings Call Presentation
• Positive Sentiment: OpenText declared a quarterly dividend of $0.28 per share, payable September 18 to shareholders of record on September 4. The reported annualized yield is approximately 4.4%, which may appeal to income-oriented investors.
• Neutral Sentiment: The earnings presentation emphasized growing demand for trusted data and artificial-intelligence solutions. However, investors will likely look for evidence that AI-related demand translates into faster overall growth.
• Negative Sentiment: Fiscal 2027 revenue guidance of $5.1 billion to $5.2 billion was below the roughly $5.3 billion consensus estimate. First-quarter guidance of $1.2 billion to $1.3 billion was also at or below expectations, signaling limited near-term growth momentum.
• Negative Sentiment: Raymond James downgraded Open Text from “outperform” to “market perform,” adding pressure to the shares even after the quarterly earnings beat.

About Open Text

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.