Open Text (NASDAQ:OTEX) Given New $28.00 Price Target at Citigroup

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target boosted by investment analysts at Citigroup from $25.00 to $28.00 in a research report issued to clients and investors on Friday,BayStreet.CA reports. The firm currently has a “neutral” rating on the software maker’s stock. Citigroup’s target price suggests a potential upside of 13.29% from the company’s previous close.

Other equities analysts have also issued research reports about the company. Scotia lowered their price target on Open Text from $40.00 to $33.00 and set a “sector outperform” rating on the stock in a report on Friday. Scotiabank set a $33.00 target price on Open Text in a research note on Friday. National Bank Financial dropped their target price on Open Text from $45.00 to $33.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. Weiss Ratings restated a “hold (c-)” rating on shares of Open Text in a research note on Wednesday, June 24th. Finally, Wall Street Zen downgraded Open Text from a “strong-buy” rating to a “buy” rating in a report on Tuesday, July 28th. Three research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Open Text has a consensus rating of “Hold” and an average price target of $32.29.

Open Text Stock Performance

OTEX stock traded down $0.94 on Friday, hitting $24.71. The company’s stock had a trading volume of 1,939,602 shares, compared to its average volume of 2,162,387. The stock has a market cap of $5.98 billion, a price-to-earnings ratio of 12.04 and a beta of 1.03. The firm has a 50 day moving average of $23.03 and a two-hundred day moving average of $23.60. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.56. Open Text has a 1 year low of $19.77 and a 1 year high of $39.90.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data 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. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.29 billion. Open Text had a net margin of 9.91% and a return on equity of 24.77%. Open Text’s revenue for the quarter was up 2.9% on a year-over-year basis. During the same period last year, the firm posted $0.97 EPS. Equities analysts predict that Open Text will post 4.05 EPS for the current fiscal year.

Institutional Trading of Open Text

A number of institutional investors have recently modified their holdings of the business. CIBC Private Wealth Group LLC acquired a new position in Open Text during the third quarter worth $33,000. Global Retirement Partners LLC acquired a new stake in Open Text in the second quarter valued at $34,000. WealthCollab LLC boosted 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 purchasing an additional 464 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted 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 purchasing an additional 1,580 shares in the last quarter. Finally, Osaic Holdings Inc. grew its stake in shares of Open Text by 108.8% during the 2nd quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker’s stock worth $52,000 after purchasing an additional 937 shares during the period. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Open Text

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

• Positive Sentiment: OpenText reported fourth-quarter revenue of $1.349 billion, up 2.9% year over year and above the $1.29 billion consensus estimate. Adjusted earnings per share of $1.23 exceeded expectations of $1.02. Cloud revenue increased 6.0% to $503 million, while fiscal-year cloud revenue reached $1.96 billion, up 5.5%. OpenText Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Profitability also improved: GAAP net income rose sharply, adjusted EBITDA reached $507 million with a 37.6% margin, and EPS increased from $0.97 in the prior-year quarter. These results may support the stock’s valuation and reinforce management’s focus on cloud and recurring revenue. Open Text Corporation 2026 Q4 Results Earnings Call Presentation
• Positive Sentiment: OpenText declared a quarterly dividend of $0.28 per share, payable September 18 to shareholders of record on September 4. The reported annualized yield is approximately 4.4%, which may appeal to income-oriented investors.
• Neutral Sentiment: The earnings presentation emphasized growing demand for trusted data and artificial-intelligence solutions. However, investors will likely look for evidence that AI-related demand translates into faster overall growth.
• Negative Sentiment: Fiscal 2027 revenue guidance of $5.1 billion to $5.2 billion was below the roughly $5.3 billion consensus estimate. First-quarter guidance of $1.2 billion to $1.3 billion was also at or below expectations, signaling limited near-term growth momentum.
• Negative Sentiment: Raymond James downgraded Open Text from “outperform” to “market perform,” adding pressure to the shares even after the quarterly earnings beat.

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.