Open Text (NASDAQ:OTEX) Given New $25.00 Price Target at Citigroup

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price trimmed by Citigroup from $26.00 to $25.00 in a research report released on Friday morning,BayStreet.CA reports. The brokerage currently has a neutral rating on the software maker’s stock.

A number of other brokerages have also commented on OTEX. Raymond James Financial decreased their price objective on Open Text from $48.00 to $42.00 and set an “outperform” rating on the stock in a report on Friday, February 6th. Barclays decreased their price objective on Open Text from $30.00 to $25.00 and set an “equal weight” rating on the stock in a report on Monday, April 20th. Royal Bank Of Canada decreased their price objective on Open Text from $30.00 to $27.00 and set a “sector perform” rating on the stock in a report on Friday. UBS Group set a $25.00 price objective on Open Text in a report on Friday. Finally, Canadian Imperial Bank of Commerce decreased their price objective on Open Text from $40.00 to $37.00 and set a “neutral” rating on the stock in a report on Friday, January 16th. Four investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $34.50.

Open Text Stock Performance

Shares of NASDAQ OTEX opened at $24.73 on Friday. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.94 and a quick ratio of 0.94. The stock’s fifty day moving average price is $23.08 and its two-hundred day moving average price is $28.75. Open Text has a one year low of $20.00 and a one year high of $39.90. The firm has a market cap of $5.99 billion, a price-to-earnings ratio of 12.06 and a beta of 1.04.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings data on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, beating analysts’ consensus estimates of $0.94 by $0.07. Open Text had a return on equity of 24.76% and a net margin of 9.91%.The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the firm posted $0.82 EPS. The company’s revenue for the quarter was up 2.2% on a year-over-year basis. On average, equities analysts forecast that Open Text will post 3.98 EPS for the current year.

Open Text Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be issued a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 4.4%. The ex-dividend date of this dividend is Friday, June 5th. Open Text’s dividend payout ratio is 64.71%.

Institutional Trading of Open Text

Large investors have recently modified their holdings of the stock. CIBC Private Wealth Group LLC acquired a new stake in shares of Open Text during the 3rd quarter worth $33,000. WealthCollab LLC grew its holdings 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 grew its holdings 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. Osaic Holdings Inc. grew its holdings 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 in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in Open Text by 39.7% in the second 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 in the last quarter. 70.37% of the stock is owned by institutional investors and hedge funds.

Open Text News Roundup

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

• Positive Sentiment: Open Text reported fiscal Q3 results that beat expectations, with EPS of $0.95 vs. $0.94 expected and revenue of $1.28 billion vs. $1.26 billion expected. Revenue rose 2.2% year over year, which can help reassure investors about business stability. Open Text earnings report
• Positive Sentiment: The company also highlighted cloud revenue growth of 6.6% and strong profitability metrics, including a 34.1% adjusted EBITDA margin and $0.70 of diluted EPS, which support the view that core operations remain healthy. OpenText Q3 financial results
• Positive Sentiment: Open Text declared a quarterly dividend of $0.275 per share, signaling continued shareholder returns and helping attract income-oriented investors.
• Neutral Sentiment: The company updated FY2026 revenue guidance to $5.2 billion-$5.3 billion, roughly in line with consensus, suggesting management is not seeing a major change in the outlook.
• Neutral Sentiment: Open Text also announced that Ayman Antoun officially joined as CEO, which adds a leadership-change angle that investors may watch but has not yet clearly changed the fundamentals.
• Negative Sentiment: Several analysts lowered price targets on Open Text, including Raymond James to $35 from $42, Scotia to $40 from $50, and Citigroup to $25 from $26. While ratings were not cut broadly, the target reductions may pressure sentiment near term. Analyst ratings update
• Negative Sentiment: Investors may also be weighing mixed underlying cash flow trends from the quarter, including weaker operating cash flow and higher capital spending, which could limit enthusiasm despite the 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.