Open Text (NASDAQ:OTEX) Given New $35.00 Price Target at Raymond James Financial

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target lowered by research analysts at Raymond James Financial from $42.00 to $35.00 in a research report issued to clients and investors on Friday,BayStreet.CA reports. The firm currently has an “outperform” rating on the software maker’s stock. Raymond James Financial’s price objective would indicate a potential upside of 43.70% from the stock’s previous close.

Several other brokerages also recently issued reports on OTEX. Scotia cut their price target on Open Text from $50.00 to $40.00 and set a “sector outperform” rating for the company in a report on Friday. Scotiabank set a $40.00 price target on Open Text in a report on Friday. Canadian Imperial Bank of Commerce cut their price objective on shares of Open Text from $40.00 to $37.00 and set a “neutral” rating for the company in a research report on Friday, January 16th. Citigroup dropped their target price on Open Text from $26.00 to $25.00 and set a “neutral” rating for the company in a report on Friday. Finally, TD Securities upgraded shares of Open Text to a “hold” rating in a research report on Monday, February 2nd. Four investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $34.50.

Open Text Stock Up 2.8%

Shares of Open Text stock traded up $0.67 during trading hours on Friday, reaching $24.36. 3,251,427 shares of the company’s stock were exchanged, compared to its average volume of 1,993,040. The company has a 50 day moving average of $23.08 and a two-hundred day moving average of $28.75. Open Text has a fifty-two week low of $20.00 and a fifty-two week high of $39.90. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.57. The stock has a market cap of $5.90 billion, a P/E ratio of 14.37 and a beta of 1.04.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, February 5th. The software maker reported $1.13 EPS for the quarter, topping analysts’ consensus estimates of $1.04 by $0.09. Open Text had a net margin of 8.42% and a return on equity of 23.60%. The company had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the prior year, the business posted $1.11 EPS. The company’s quarterly revenue was down .6% on a year-over-year basis. On average, sell-side analysts forecast that Open Text will post 3.98 EPS for the current fiscal year.

Institutional Trading of Open Text

A number of institutional investors and hedge funds have recently bought and sold shares of OTEX. CIBC Private Wealth Group LLC acquired a new stake in Open Text during the 3rd quarter valued at approximately $33,000. Caitong International Asset Management Co. Ltd lifted its holdings in Open Text by 5,096.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker’s stock valued at $52,000 after purchasing an additional 1,580 shares during the last quarter. WealthCollab LLC lifted its position in shares of 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 acquiring an additional 464 shares in the last quarter. Osaic Holdings Inc. lifted its holdings in shares of Open Text by 108.8% in the second quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker’s stock worth $52,000 after buying an additional 937 shares in the last quarter. Finally, Barclays PLC raised its position in shares of Open Text by 55.5% in the fourth quarter. Barclays PLC now owns 1,854 shares of the software maker’s stock worth $60,000 after buying an additional 662 shares in the last quarter. 70.37% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Open Text

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

• Positive Sentiment: Q3 results showed an earnings beat and revenue growth: Open Text reported roughly $1.28B in revenue (≈+2.2% Y/Y) and EPS above consensus, with net income and EPS rising sharply year-over-year. Investors view the beat as validation of the recovery in profitability. Read More.
• Positive Sentiment: CEO transition finalized: Ayman Antoun officially joined as CEO (effective April 20), which the company and markets framed positively as new leadership to drive strategy and execution. Read More.
• Positive Sentiment: Dividend maintained and investor yield appeal: Open Text declared a quarterly dividend of $0.275 (annualized yield ~4.6%), reinforcing the cash-return profile that supports income-focused holders and can stabilize the share price.
• Positive Sentiment: Institutional activity and analyst targets show buyer interest: Several large managers added to positions recently and median analyst targets sit above the current price, providing potential upside if execution continues. Read More.
• Neutral Sentiment: FY‑2026 revenue guidance roughly in line with Street expectations: Management updated fiscal 2026 revenue guidance to about $5.2B–$5.3B, which essentially confirms consensus and removes a near‑term catalyst for large upgrades.
• Neutral Sentiment: Earnings call materials and transcript available for detail: Management provided the earnings slide deck and call transcript for deeper read-throughs on strategy, cloud growth and margin drivers. Read More. Read More.
• Negative Sentiment: Operating cash flow and free cash flow weakness: Reported operating cash flow declined sharply and capex rose, reducing free-cash-flow generation and limiting immediate capacity for buybacks or M&A—a key concern for valuation and dividend sustainability. Read More.
• Negative Sentiment: Operating profit and some margins slipped Y/Y despite revenue growth, signaling margin pressure that could temper upside until cost structure and cloud mix improve.

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.