Open Text (NASDAQ:OTEX) Downgraded by Wall Street Zen to “Hold”

Open Text (NASDAQ:OTEX) (TSE:OTC) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday, Wall Street Zen reports.

OTEX has been the subject of several other reports. Scotia decreased their price target on shares of Open Text from $40.00 to $33.00 and set a “sector outperform” rating for the company in a research note on Friday, August 7th. Raymond James Financial downgraded Open Text from an “outperform” rating to a “market perform” rating and reduced their target price for the stock from $35.00 to $29.50 in a research note on Thursday, August 6th. Barclays lifted their target price on shares of Open Text from $27.00 to $29.00 and gave the company an “equal weight” rating in a report on Friday. Citigroup lifted their target price on Open Text from $25.00 to $28.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Finally, Zacks Research upgraded Open Text from a “strong sell” rating to a “hold” rating in a report on Monday, October 5th. Three equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, Open Text currently has an average rating of “Hold” and a consensus target price of $30.72.

Open Text Stock Down 4.9%

OTEX opened at $24.85 on Friday. The company has a fifty day moving average of $24.44 and a two-hundred day moving average of $23.84. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.81 and a current ratio of 0.81. The stock has a market capitalization of $6.00 billion, a price-to-earnings ratio of 9.41 and a beta of 0.98. Open Text has a fifty-two week low of $19.77 and a fifty-two week high of $35.65.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, November 5th. The software maker reported $1.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.94 by $0.11. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The company had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.22 billion. During the same period last year, the company posted $1.05 earnings per share. The firm’s quarterly revenue was down 4.0% compared to the same quarter last year. On average, research analysts expect that Open Text will post 3.72 earnings per share for the current year.

Hedge Funds Weigh In On Open Text

Several institutional investors and hedge funds have recently bought and sold shares of the business. Letko Brosseau & Associates Inc. lifted its position in Open Text by 0.3% during the 3rd quarter. Letko Brosseau & Associates Inc. now owns 8,866,816 shares of the software maker’s stock worth $199,289,000 after buying an additional 29,188 shares in the last quarter. Russell Investments Group Ltd. grew its stake in Open Text by 13.8% during the third quarter. Russell Investments Group Ltd. now owns 210,831 shares of the software maker’s stock worth $4,736,000 after purchasing an additional 25,525 shares during the period. Kestra Advisory Services LLC bought a new position in shares of Open Text in the third quarter valued at approximately $306,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Open Text during the 3rd quarter valued at about $2,725,000. Finally, Vise Technologies Inc. increased its stake in shares of Open Text by 11.6% during the third quarter. Vise Technologies Inc. now owns 10,229 shares of the software maker’s stock valued at $229,000 after buying an additional 1,062 shares during the period. Hedge funds and other institutional investors own 70.37% of the company’s stock.

Key Headlines Impacting Open Text

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

• Positive Sentiment: Open Text earned $1.05 per share, ahead of the $0.94 consensus, and revenue of $1.24 billion topped estimates of $1.22 billion. Core revenue grew 2% year over year, core cloud revenue rose 11%, and adjusted EBITDA margin was 35.8%. OpenText first-quarter fiscal 2027 results
• Positive Sentiment: Barclays raised its price target from $27 to $29, implying 16.6% upside from the cited share price. Its rating remains “equal weight,” however, signaling a broadly market-level view.
• Positive Sentiment: The company declared a quarterly dividend of $0.28 per share, equivalent to $1.12 annually and a stated yield of about 4.3%.
• Neutral Sentiment: Second-quarter revenue guidance of $1.3 billion is in line with analyst consensus.
• Negative Sentiment: Fiscal 2027 revenue guidance of $5.1 billion–$5.2 billion has a midpoint below the $5.2 billion consensus, a modest forecast shortfall that could temper the earnings beat.
• Negative Sentiment: Despite beating estimates, quarterly revenue declined 4% year over year, and EPS was unchanged from the same quarter last year. That weak growth comparison may limit the positive impact of the results.

About Open Text

OpenText Corporation is a Canadian enterprise software company that develops solutions for managing, securing and exchanging business information. Its offerings help organizations organize content, automate business processes, connect with customers and partners, and manage information across cloud, on-premises and hybrid environments.

The company’s portfolio includes enterprise content management, business network and integration services, customer experience tools, cybersecurity and information governance solutions, and software for managing enterprise applications and information technology operations.