Open Text (NASDAQ:OTEX) Given New $40.00 Price Target at Scotia

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price cut by Scotia from $50.00 to $40.00 in a research report released on Friday morning,BayStreet.CA reports. They currently have a sector outperform rating on the software maker’s stock.

OTEX has been the subject of several other reports. Barclays dropped their price objective on Open Text from $30.00 to $25.00 and set an “equal weight” rating for the company in a report on Monday, April 20th. Raymond James Financial dropped their price objective on Open Text from $48.00 to $42.00 and set an “outperform” rating for the company in a report on Friday, February 6th. Scotiabank dropped their price objective on Open Text from $50.00 to $40.00 and set a “sector outperform” rating for the company in a report on Friday. UBS Group set a $25.00 target price on Open Text in a research report on Friday. Finally, Royal Bank Of Canada decreased their target price on Open Text from $30.00 to $27.00 and set a “sector perform” rating for the company in a research report on Friday. Four research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $34.50.

Open Text Stock Performance

Shares of NASDAQ:OTEX opened at $24.73 on Friday. The stock has a market capitalization of $5.99 billion, a P/E ratio of 12.06 and a beta of 1.04. Open Text has a 1-year low of $20.00 and a 1-year high of $39.90. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.57. The business has a 50-day moving average price of $23.08 and a two-hundred day moving average price of $28.75.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings data on Thursday, May 7th. The software maker reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.07. The firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Open Text had a return on equity of 24.76% and a net margin of 9.91%.The company’s quarterly revenue was up 2.2% compared to the same quarter last year. During the same period in the previous year, the business posted $0.82 EPS. Equities analysts predict that Open Text will post 3.98 earnings per share for the current year.

Open Text Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be given a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 4.4%. The ex-dividend date is Friday, June 5th. Open Text’s payout ratio is presently 64.71%.

Hedge Funds Weigh In On Open Text

Institutional investors have recently modified their holdings of the stock. CIBC Private Wealth Group LLC acquired a new position in shares of Open Text during the 3rd quarter worth about $33,000. WealthCollab LLC grew its position 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 buying an additional 464 shares during the period. Caitong International Asset Management Co. Ltd grew its position in shares of Open Text by 5,096.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker’s stock worth $52,000 after buying an additional 1,580 shares during the period. Osaic Holdings Inc. grew its position in shares of Open Text by 108.8% in the 2nd quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker’s stock valued at $52,000 after purchasing an additional 937 shares during the period. Finally, EverSource Wealth Advisors LLC increased its stake in Open Text by 39.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock worth $59,000 after purchasing an additional 570 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors and hedge funds.

More Open Text News

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

• Positive Sentiment: Open Text reported fiscal Q3 results that beat expectations, with EPS of $0.95 vs. $0.94 expected and revenue of $1.28 billion vs. $1.26 billion expected. Revenue rose 2.2% year over year, which can help reassure investors about business stability. Open Text earnings report
• Positive Sentiment: The company also highlighted cloud revenue growth of 6.6% and strong profitability metrics, including a 34.1% adjusted EBITDA margin and $0.70 of diluted EPS, which support the view that core operations remain healthy. OpenText Q3 financial results
• Positive Sentiment: Open Text declared a quarterly dividend of $0.275 per share, signaling continued shareholder returns and helping attract income-oriented investors.
• Neutral Sentiment: The company updated FY2026 revenue guidance to $5.2 billion-$5.3 billion, roughly in line with consensus, suggesting management is not seeing a major change in the outlook.
• Neutral Sentiment: Open Text also announced that Ayman Antoun officially joined as CEO, which adds a leadership-change angle that investors may watch but has not yet clearly changed the fundamentals.
• Negative Sentiment: Several analysts lowered price targets on Open Text, including Raymond James to $35 from $42, Scotia to $40 from $50, and Citigroup to $25 from $26. While ratings were not cut broadly, the target reductions may pressure sentiment near term. Analyst ratings update
• Negative Sentiment: Investors may also be weighing mixed underlying cash flow trends from the quarter, including weaker operating cash flow and higher capital spending, which could limit enthusiasm despite the earnings beat.

Open Text Company Profile

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.