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

Wall Street Zen cut shares of Open Text (NASDAQ:OTEX) (TSE:OTC) from a buy rating to a hold rating in a report released on Saturday morning.

A number of other equities analysts also recently weighed in on the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Open Text in a research note on Wednesday, June 24th. Scotia lowered their target price on Open Text from $40.00 to $33.00 and set a “sector outperform” rating on the stock in a research note on Friday. Citigroup upped their target price on Open Text from $25.00 to $28.00 and gave the stock a “neutral” rating in a research report on Friday. Raymond James Financial downgraded Open Text from an “outperform” rating to a “market perform” rating and cut their price target for the stock from $35.00 to $29.50 in a research note on Thursday. Finally, Royal Bank Of Canada reduced their price target 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. Three equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat, Open Text currently has a consensus rating of “Hold” and a consensus price target of $32.46.

Open Text Stock Performance

Shares of OTEX opened at $24.94 on Friday. The company’s 50 day moving average price is $23.05 and its 200 day moving average price is $23.61. Open Text has a 52 week low of $19.77 and a 52 week high of $39.90. The company has a market capitalization of $6.04 billion, a PE ratio of 9.67 and a beta of 1.03. The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.94 and a current 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 (EPS) 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 net margin of 12.26% and a return on equity of 25.80%. The company’s revenue was up 2.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.97 EPS. Research analysts expect that Open Text will post 4.32 EPS for the current fiscal year.

Open Text Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be given a $0.28 dividend. This is a positive change from Open Text’s previous quarterly dividend of $0.28. This represents a $1.12 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date of this dividend is Friday, September 4th. Open Text’s payout ratio is 53.66%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. grew its position in shares of Open Text by 75.8% in the first quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker’s stock valued at $36,307,000 after purchasing an additional 619,527 shares during the last quarter. United Services Automobile Association bought a new position in Open Text during the first quarter worth $213,000. EverSource Wealth Advisors LLC raised its stake in Open Text by 39.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock valued at $59,000 after purchasing an additional 570 shares during the last quarter. Cerity Partners LLC raised its stake in Open Text by 3.4% during the 2nd quarter. Cerity Partners LLC now owns 49,003 shares of the software maker’s stock valued at $1,431,000 after purchasing an additional 1,612 shares during the last quarter. Finally, Qube Research & Technologies Ltd boosted its holdings in Open Text by 16.8% in the 2nd quarter. Qube Research & Technologies Ltd now owns 46,500 shares of the software maker’s stock valued at $1,360,000 after purchasing an additional 6,700 shares during the period. 70.37% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting 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.

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.