Open Text (OTEX) Stock Price, News & Analysis

Company Overview

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. It also provides cybersecurity cloud solutions to protect, prevent, detect, respond and quickly recover from threats across endpoints, network, applications, IT infrastructure and data, AI-led threat intelligence; and to protect critical information and processes through threat intelligence, forensics, identity, encryption, and cloud-based application security. In addition, the company offers business network cloud for digital supply chains and secure e-commerce ecosystems including digitize and automate procure-to-pay and order-to-cash processes; IT operations management cloud for automation and advancement of IT support and asset management; and analytics & AI cloud solutions that offers artificial intelligence with practical usage to provide organizations with actionable insights and better automation, such as visualizations, advanced natural language processing and understanding, and integrated computer vision capabilities. In addition, it provides application automation cloud, developers cloud, and services. Further, it has strategic partnerships with SAP SE, Google Cloud, Amazon AWS, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, DXC Technology Company, Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.

Key Stats

• Today's Range: $28.23 to $28.56
• 50-Day Range: $24.69 to $29.02
• 52-Week Range: $22.79 to $34.20
• Volume: 1.46 million shs
• Average Volume: 921,474 shs
• Market Capitalization: $7.32 billion
• P/E Ratio: 11.54
• Dividend Yield: 3.71%
• Price Target: $32.30
• Consensus Rating: Hold

Open Text Stock Analysis - MarketRank™

Open Text scored higher than 95% of companies evaluated by MarketBeat, and ranked 121st out of 1,338 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.0 / 5
• Analyst Rating: Hold

Consensus Rating

Open Text has received a consensus rating of Hold. The company's average rating score is 2.09, and is based on 2 buy ratings, 8 hold ratings, and 1 sell rating.

Amount of Analyst Coverage

Open Text has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 9.57%

Earnings Growth

Earnings for Open Text are expected to grow by 9.57% in the coming year, from $3.45 to $3.78 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Open Text is 11.54, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 23.35.

Price to Earnings Ratio vs. Sector

The P/E ratio of Open Text is 11.54, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 34.92.

Price to Book Value per Share Ratio

Open Text has a P/B Ratio of 1.81. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

3.20% of the float of Open Text has been sold short.

Short Interest Ratio / Days to Cover

Open Text has a short interest ratio ("days to cover") of 5.9.

Change versus previous month

Short interest in Open Text has recently increased by 0.50%, indicating that investor sentiment is decreasing.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Leadership

Open Text is a leading dividend payer. It pays a dividend yield of 3.72%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Open Text does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Open Text is 42.86%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Open Text will have a dividend payout ratio of 27.78% next year. This indicates that Open Text will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.9 / 5
• Environmental Score: -1.36

Percentage of Shares Shorted

3.20% of the float of Open Text has been sold short.

Short Interest Ratio / Days to Cover

Open Text has a short interest ratio ("days to cover") of 5.9.

Change versus previous month

Short interest in Open Text has recently increased by 0.50%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 3.2 / 5
• News Sentiment: 1.70

News Sentiment

Open Text has a news sentiment score of 1.70. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.84 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 6 news articles for Open Text this week, compared to 6 articles on an average week.

Search Interest

6 people have searched for OTEX on MarketBeat in the last 30 days. This is an increase of 20% compared to the previous 30 days.

MarketBeat Follows

Only 1 people have added Open Text to their MarketBeat watchlist in the last 30 days. This is a decrease of 0% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Open Text insiders have not sold or bought any company stock.

Percentage Held by Insiders

10.58% of the stock of Open Text is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

70.37% of the stock of Open Text is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

OTEX Stock Analysis - Frequently Asked Questions

How have OTEX shares performed this year?

Open Text's stock was trading at $28.32 at the beginning of the year. Since then, OTEX stock has decreased by 0.1% and is now trading at $28.28.
View the best growth stocks for 2025 here.

How were Open Text's earnings last quarter?

Open Text Corporation (NASDAQ:OTEX) announced its quarterly earnings data on Wednesday, April, 30th. The software maker reported $0.82 earnings per share for the quarter, beating analysts' consensus estimates of $0.81 by $0.01. The company's revenue was down 13.3% on a year-over-year basis.
Read the conference call transcript.

Does Open Text have any subsidiaries?

Open Text subsidiaries include these companies: XMedius, Carbonite, Catalyst Repository Systems, Liaison Technologies, Hightail, OpenText Security, Covisint, and more.

Who are Open Text's major shareholders?

Top institutional investors of Open Text include Vanguard Group Inc. (4.29%), Royal Bank of Canada (2.72%), Cooke & Bieler LP (2.35%) and Mackenzie Financial Corp (2.26%).

How do I buy shares of Open Text?

Shares of OTEX stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Open Text own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Open Text investors own include Intact Financial (IFC), Constellation Software (CSU), AutoCanada (ACQ), Alimentation Couche-Tard (ATD.B), AbbVie (ABBV), Wheaton Precious Metals (WPM) and NVIDIA (NVDA).

Company Calendar

• Record date for 3/21 Dividend: 3/07/2025
• Ex-Dividend for 3/21 Dividend: 3/07/2025
• Dividend Payable: 3/21/2025
• Last Earnings: 4/30/2025
• Record date for 6/20 Dividend: 6/06/2025
• Ex-Dividend for 6/20 Dividend: 6/06/2025
• Today: 6/17/2025
• Dividend Payable: 6/20/2025
• Fiscal Year End: 6/30/2025
• Next Earnings (Estimated): 7/30/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: COMP-SOFTWARE
• Sub-Industry: Computer Software
• Current Symbol: NASDAQ:OTEX
• CIK: 1002638
• Web: www.opentext.com
• Phone: (519) 888-7111
• Fax: 519-888-0677
• Employees: 22,900
• Year Founded: 1991

Price Target and Rating

• Average Stock Price Target: $32.30
• High Stock Price Target: $43.00
• Low Stock Price Target: $28.00
• Potential Upside/Downside: +14.2%
• Consensus Rating: Hold
• Rating Score (0-4): 2.09
• Research Coverage: 11 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $2.45
• Trailing P/E Ratio: 11.54
• Forward P/E Ratio: 8.20
• P/E Growth: N/A
• Net Income: $465.09 million
• Net Margins: 12.55%
• Pretax Margin: 18.36%
• Return on Equity: 22.49%
• Return on Assets: 6.77%

Debt

• Debt-to-Equity Ratio: 1.54
• Current Ratio: 0.86
• Quick Ratio: 0.86

Sales & Book Value

• Annual Sales: $5.77 billion
• Price / Sales: 1.27
• Cash Flow: $6.93 per share
• Price / Cash Flow: 4.08
• Book Value: $15.66 per share
• Price / Book: 1.81

Miscellaneous

• Outstanding Shares: 258,990,000
• Free Float: 231,587,000
• Market Cap: $7.32 billion
• Optionable: Optionable
• Beta: 1.13