Open Text (NASDAQ:OTEX) Price Target Raised to $28.00

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

OTEX has been the subject of a number of other research reports. Raymond James Financial set a $29.50 price target on Open Text and gave the company a “market perform” rating in a research report on Thursday. National Bank Financial decreased their price objective on shares of Open Text from $45.00 to $33.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 27th. Royal Bank Of Canada lowered their price objective on shares of Open Text from $30.00 to $27.00 and set a “sector perform” rating on the stock in a research note on Friday, May 8th. Wall Street Zen downgraded shares of Open Text from a “strong-buy” rating to a “buy” rating in a report on Tuesday, July 28th. Finally, UBS Group set a $25.00 target price on shares of Open Text in a research report on Friday, May 8th. Three analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $32.29.

Open Text Price Performance

Shares of NASDAQ:OTEX traded down $0.94 during trading on Friday, hitting $24.71. 1,939,602 shares of the stock were exchanged, compared to its average volume of 2,162,387. The company has a market cap of $5.98 billion, a PE ratio of 12.04 and a beta of 1.03. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.56. The company has a fifty day moving average price of $23.03 and a two-hundred day moving average price of $23.60. Open Text has a 12-month low of $19.77 and a 12-month high of $39.90.

Open Text (NASDAQ:OTEX) (TSE:OTC) last released its quarterly earnings data on Thursday, August 6th. The software maker reported $1.23 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.21. The firm 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 24.77% and a net margin of 9.91%.Open Text’s quarterly revenue was up 2.9% on a year-over-year basis. During the same period last year, the business posted $0.97 EPS. On average, analysts forecast that Open Text will post 4.05 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Tidal Investments LLC grew its position in shares of Open Text by 2.6% in the second quarter. Tidal Investments LLC now owns 18,059 shares of the software maker’s stock valued at $527,000 after purchasing an additional 460 shares during the period. WealthCollab LLC lifted its position in Open Text by 39.5% during the second quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock worth $48,000 after buying an additional 464 shares during the period. Byrne Asset Management LLC boosted its stake in Open Text by 11.5% in the 2nd quarter. Byrne Asset Management LLC now owns 4,837 shares of the software maker’s stock worth $107,000 after buying an additional 500 shares during the last quarter. Vident Advisory LLC boosted its stake in Open Text by 3.7% in the 4th quarter. Vident Advisory LLC now owns 15,715 shares of the software maker’s stock worth $512,000 after buying an additional 555 shares during the last quarter. Finally, EverSource Wealth Advisors LLC grew its holdings in Open Text by 39.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,005 shares of the software maker’s stock valued at $59,000 after buying an additional 570 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: 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.