Open Text (NASDAQ:OTEX) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Open Text to “Hold” from “Buy,” adding to a broader analyst consensus of “Hold.” The average price target is $32.46, with recent targets ranging from $27 to $33.
• Open Text reported better-than-expected quarterly results, with EPS of $1.23 versus the $1.02 estimate and revenue of $1.33 billion versus $1.29 billion expected. Revenue rose 2.9% year over year, while cloud revenue increased 6.0%.
• Shares opened at $24.94 after a reported 2.8% decline, while the company announced a quarterly dividend of $0.28 per share, representing an approximately 4.4% annualized yield.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other research analysts have also recently issued reports on the company. Scotiabank set a $33.00 target price on Open Text in a research note on Friday. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Open Text in a research report on Wednesday, June 24th. Scotia cut their price objective on Open Text from $40.00 to $33.00 and set a "sector outperform" rating on the stock in a report on Friday. Royal Bank Of Canada decreased their price objective on 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, UBS Group increased their target price on Open Text from $25.00 to $27.00 and gave the stock a "neutral" rating in a research note on Friday. Three investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $32.46.

Open Text Trading Down 2.8%

Shares of NASDAQ OTEX opened at $24.94 on Friday. The company's fifty day moving average is $23.05 and its 200-day moving average is $23.61. The stock has a market cap of $6.04 billion, a price-to-earnings ratio of 9.67 and a beta of 1.03. Open Text has a twelve month low of $19.77 and a twelve month high of $39.90. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.56.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last released its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 EPS for the quarter, beating analysts' consensus estimates of $1.02 by $0.21. The business had revenue of $1.33 billion during the quarter, compared to analysts' expectations of $1.29 billion. Open Text had a net margin of 12.26% and a return on equity of 25.80%. The firm's quarterly revenue was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.97 EPS. Equities research analysts predict that Open Text will post 4.32 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of OTEX. CIBC Private Wealth Group LLC acquired a new stake in Open Text in the 3rd quarter valued at approximately $33,000. Global Retirement Partners LLC acquired a new position in Open Text during the 2nd quarter worth approximately $34,000. Caitong International Asset Management Co. Ltd grew its stake 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 acquiring an additional 1,580 shares in the last quarter. WealthCollab LLC grew its stake 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 acquiring an additional 464 shares in the last quarter. Finally, Osaic Holdings Inc. raised its holdings in shares of Open Text by 108.8% in the second 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 last quarter. 70.37% of the stock is currently owned by institutional investors.

Open Text News Roundup

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.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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