Open Text (NASDAQ:OTEX) Price Target Lowered to $33.00 at Scotia

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target trimmed by Scotia from $40.00 to $33.00 in a report issued on Friday morning,BayStreet.CA reports. The brokerage currently has a sector outperform rating on the software maker’s stock.

Several other analysts have also weighed in on OTEX. Royal Bank Of Canada cut their price objective on Open Text from $30.00 to $27.00 and set a “sector perform” rating for the company in a report on Friday, May 8th. Barclays lifted their target price on Open Text from $25.00 to $27.00 and gave the stock an “equal weight” rating in a report on Monday, May 11th. Weiss Ratings reissued a “hold (c-)” rating on shares of Open Text in a report on Wednesday, June 24th. Wall Street Zen lowered shares of Open Text from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, July 28th. Finally, National Bank Financial reduced their price objective 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 equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, Open Text presently has a consensus rating of “Hold” and an average target price of $32.46.

Open Text Price Performance

NASDAQ OTEX opened at $24.94 on Friday. Open Text has a 12 month low of $19.77 and a 12 month high of $39.90. The firm has a market capitalization of $6.04 billion, a PE ratio of 9.67 and a beta of 1.03. The company’s 50 day simple moving average is $23.05 and its 200 day simple moving average is $23.61. 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 (NASDAQ:OTEX) (TSE:OTC) last released its 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. Open Text had a return on equity of 25.80% and a net margin of 12.26%.The firm had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the prior year, the firm posted $0.97 earnings per share. The firm’s revenue for the quarter was up 2.9% compared to the same quarter last year. As a group, equities research analysts forecast that Open Text will post 4.32 EPS 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 represents a $1.12 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date is Friday, September 4th. This is a positive change from Open Text’s previous quarterly dividend of $0.28. Open Text’s payout ratio is presently 53.66%.

Hedge Funds Weigh In On Open Text

A number of hedge funds and other institutional investors have recently modified their holdings of OTEX. Norges Bank purchased a new stake in Open Text during the fourth quarter valued at about $106,700,000. First Trust Advisors LP increased its position in shares of Open Text by 27.3% in the fourth quarter. First Trust Advisors LP now owns 11,493,714 shares of the software maker’s stock worth $374,394,000 after acquiring an additional 2,466,264 shares in the last quarter. BlackRock Inc. purchased a new position in shares of Open Text in the second quarter worth approximately $46,144,000. Morgan Stanley raised its holdings in shares of Open Text by 76.8% during the fourth quarter. Morgan Stanley now owns 2,884,381 shares of the software maker’s stock valued at $93,973,000 after acquiring an additional 1,253,405 shares during the period. Finally, The Manufacturers Life Insurance Company raised its holdings in shares of Open Text by 11.7% during the fourth quarter. The Manufacturers Life Insurance Company now owns 10,734,420 shares of the software maker’s stock valued at $349,978,000 after acquiring an additional 1,122,320 shares during the period. Institutional investors and hedge funds own 70.37% of the company’s stock.

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.

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.