Open Text (NASDAQ:OTEX) Given New $27.00 Price Target at UBS Group

Key Points

• UBS raised Open Text’s price target to $27 from $25 while maintaining a “neutral” rating, implying about 8.3% upside from the $24.94 share price. The broader analyst consensus remains “Hold,” with an average target of $32.46.
• Open Text’s latest quarterly results exceeded expectations: EPS was $1.23 versus the $1.02 consensus, while revenue reached $1.33 billion and rose 2.9% year over year.
• Shares fell 2.8% in Friday trading, while institutional ownership remained high at 70.37%; several major investors, including Royal Bank of Canada and Value Partners Investments, increased their positions.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC had its price objective lifted by research analysts at UBS Group from $25.00 to $27.00 in a report released on Friday,Benzinga reports. The firm presently has a "neutral" rating on the software maker's stock. UBS Group's price objective indicates a potential upside of 8.26% from the stock's current price.

Several other brokerages have also recently issued reports on OTEX. Raymond James Financial cut shares of Open Text from an "outperform" rating to a "market perform" rating and reduced their price target for the stock from $35.00 to $29.50 in a research report on Thursday. Wall Street Zen cut shares of Open Text from a "strong-buy" rating to a "buy" rating in a report on Tuesday, July 28th. Royal Bank Of Canada cut their target price on shares of Open Text from $30.00 to $27.00 and set a "sector perform" rating on the stock in a research note on Friday, May 8th. Scotiabank set a $33.00 target price on shares of Open Text in a report on Friday. Finally, National Bank Financial decreased their price target on shares of Open Text from $45.00 to $33.00 and set an "outperform" rating for the company in a research report on Wednesday, May 27th. Three analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $32.46.

Open Text Trading Down 2.8%

Shares of NASDAQ OTEX traded down $0.72 during trading on Friday, reaching $24.94. The stock had a trading volume of 3,148,540 shares, compared to its average volume of 2,170,946. The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.94 and a current ratio of 0.94. The company has a market cap of $6.04 billion, a P/E ratio of 12.17 and a beta of 1.03. Open Text has a fifty-two week low of $19.77 and a fifty-two week high of $39.90. The business's 50-day moving average price is $23.05 and its 200-day moving average price is $23.61.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.21. Open Text had a return on equity of 24.77% and a net margin of 9.91%.The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the prior year, the company earned $0.97 EPS. Open Text's revenue was up 2.9% on a year-over-year basis. On average, equities research analysts predict that Open Text will post 4.05 EPS for the current fiscal year.

Institutional Trading of Open Text

A number of large investors have recently made changes to their positions in OTEX. Royal Bank of Canada raised its position in shares of Open Text by 10.9% during the 1st quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker's stock worth $218,920,000 after acquiring an additional 965,385 shares in the last quarter. Brandes Investment Partners LP lifted its stake in Open Text by 1.2% during the fourth quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker's stock worth $296,679,000 after purchasing an additional 106,766 shares during the last quarter. Sei Investments Co. boosted its holdings in Open Text by 47.3% in the first quarter. Sei Investments Co. now owns 255,601 shares of the software maker's stock valued at $5,684,000 after purchasing an additional 82,049 shares in the last quarter. Value Partners Investments Inc. boosted its holdings in Open Text by 30.0% in the first quarter. Value Partners Investments Inc. now owns 2,413,989 shares of the software maker's stock valued at $53,687,000 after purchasing an additional 556,534 shares in the last quarter. Finally, Montrusco Bolton Investments Inc. purchased a new position in Open Text in the fourth quarter valued at approximately $7,140,000. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Open Text

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

• Positive Sentiment: Fiscal Q4 EPS of $1.23 exceeded the $1.02 consensus estimate, while revenue of $1.33 billion topped expectations of $1.29 billion. Revenue increased 2.9% year over year, cloud revenue rose 6.0% to $503 million, and adjusted EBITDA increased 26.8%. OpenText Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Scotia maintained a “sector outperform” rating and sees substantial potential upside, although it reduced its price target to $33 from $40. Citigroup also raised its target to $28 from $25, implying more modest upside, while retaining a “neutral” rating. Analyst Ratings
• Positive Sentiment: OpenText announced a quarterly dividend of $0.28 per share, representing an approximately 4.4% annualized yield. The dividend may support the stock’s appeal to income-focused investors.

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.

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