Scotia Cuts Open Text (NASDAQ:OTEX) Price Target to $40.00

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price objective trimmed by Scotia from $50.00 to $40.00 in a report released on Friday morning,BayStreet.CA reports. The brokerage currently has a sector outperform rating on the software maker’s stock.

Other equities research analysts also recently issued reports about the stock. Royal Bank Of Canada cut their price target on shares of Open Text from $30.00 to $27.00 and set a “sector perform” rating for the company in a report on Friday. TD Securities raised shares of Open Text to a “hold” rating in a report on Monday, February 2nd. Barclays cut their price target on shares of Open Text from $30.00 to $25.00 and set an “equal weight” rating for the company in a report on Monday, April 20th. Raymond James Financial cut their price target on shares of Open Text from $48.00 to $42.00 and set an “outperform” rating for the company in a report on Friday, February 6th. Finally, Scotiabank cut their price target on shares of Open Text from $50.00 to $40.00 and set a “sector outperform” rating for the company in a report on Friday. Four analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $34.50.

Open Text Stock Performance

OTEX stock opened at $24.73 on Friday. The company has a market capitalization of $6.00 billion, a P/E ratio of 12.06 and a beta of 1.04. The company has a 50-day simple moving average of $23.08 and a 200 day simple 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 quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.56.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, May 7th. The software maker reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.07. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the prior year, the company posted $0.82 earnings per share. The company’s quarterly revenue was up 2.2% compared to the same quarter last year. Sell-side analysts predict that Open Text will post 3.98 earnings per share for the current fiscal year.

Open Text Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Shareholders 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 yield of 4.4%. The ex-dividend date is Friday, June 5th. Open Text’s payout ratio is presently 53.66%.

Institutional Trading of Open Text

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Tidal Investments LLC raised its holdings in Open Text by 2.6% during the 2nd quarter. Tidal Investments LLC now owns 18,059 shares of the software maker’s stock worth $527,000 after buying an additional 460 shares during the period. WealthCollab LLC raised its holdings in 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 buying an additional 464 shares during the period. Vident Advisory LLC raised its holdings in Open Text by 3.7% during 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 period. EverSource Wealth Advisors LLC raised its holdings 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 worth $59,000 after buying an additional 570 shares during the period. Finally, State of Tennessee Department of Treasury raised its holdings in Open Text by 0.4% during the 4th quarter. State of Tennessee Department of Treasury now owns 147,862 shares of the software maker’s stock worth $4,817,000 after buying an additional 584 shares during the period. Institutional investors and hedge funds own 70.37% of the company’s stock.

Key Open Text News

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.

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.