Open Text (NASDAQ:OTEX) Cut to Market Perform at Raymond James Financial

Raymond James Financial cut shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from an outperform rating to a market perform rating in a research note published on Thursday, Marketbeat reports.

Several other brokerages have also weighed in on OTEX. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Open Text in a research report on Wednesday, June 24th. Royal Bank Of Canada decreased their target price on shares of 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. Scotia dropped their price target on shares of Open Text from $50.00 to $40.00 and set a “sector outperform” rating on the stock in a research note on Friday, May 8th. National Bank Financial cut their price target on shares of Open Text from $45.00 to $33.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. Finally, Citigroup reduced their price objective on shares of Open Text from $26.00 to $25.00 and set a “neutral” rating for the company in a research note on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $32.46.

Open Text Stock Performance

Shares of NASDAQ OTEX opened at $24.94 on Thursday. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.94 and a quick ratio of 0.94. Open Text has a one year low of $19.77 and a one year high of $39.90. The business’s 50-day moving average price is $23.05 and its two-hundred day moving average price is $23.61. The company has a market capitalization of $6.04 billion, a P/E ratio of 9.67 and a beta of 1.03.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings results on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, topping analysts’ consensus estimates of $1.02 by $0.21. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.29 billion. Open Text had a return on equity of 25.80% and a net margin of 12.26%.The business’s quarterly revenue was up 2.9% on a year-over-year basis. During the same period last year, the business earned $0.97 EPS. Analysts anticipate that Open Text will post 4.32 earnings per share for the current fiscal year.

Open Text Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be issued a $0.28 dividend. This is an increase from Open Text’s previous quarterly dividend of $0.28. The ex-dividend date is Friday, September 4th. This represents a $1.12 annualized dividend and a yield of 4.5%. Open Text’s dividend payout ratio is presently 53.66%.

Institutional Investors Weigh In On Open Text

A number of large investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada grew its stake in Open Text by 10.9% in the 1st quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker’s stock valued at $218,920,000 after buying an additional 965,385 shares during the last quarter. Brandes Investment Partners LP lifted its position in Open Text by 1.2% during the 4th quarter. Brandes Investment Partners LP now owns 9,106,157 shares of the software maker’s stock worth $296,679,000 after acquiring an additional 106,766 shares during the last quarter. Sei Investments Co. lifted its position in Open Text by 47.3% during the 1st quarter. Sei Investments Co. now owns 255,601 shares of the software maker’s stock worth $5,684,000 after acquiring an additional 82,049 shares during the last quarter. Value Partners Investments Inc. boosted its holdings in Open Text by 30.0% during 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 acquiring an additional 556,534 shares during the period. Finally, Montrusco Bolton Investments Inc. bought a new stake in Open Text during the fourth quarter valued at about $7,140,000. Institutional investors own 70.37% of the company’s stock.

More Open Text News

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.