Open Text (NASDAQ:OTEX) Given New $40.00 Price Target at Scotia

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price target decreased by analysts at Scotia from $50.00 to $40.00 in a report issued on Friday,BayStreet.CA reports. The firm presently has a “sector outperform” rating on the software maker’s stock. Scotia’s price target indicates a potential upside of 64.23% from the company’s current price.

A number of other research firms also recently commented on OTEX. Canadian Imperial Bank of Commerce dropped their price target on Open Text from $40.00 to $37.00 and set a “neutral” rating for the company in a research note on Friday, January 16th. Raymond James Financial decreased their target price on shares of Open Text from $48.00 to $42.00 and set an “outperform” rating for the company in a research report on Friday, February 6th. Royal Bank Of Canada decreased 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. TD Securities upgraded Open Text to a “hold” rating in a report on Monday, February 2nd. Finally, UBS Group set a $25.00 price target on Open Text in a report on Friday. Four investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, Open Text has a consensus rating of “Hold” and a consensus target price of $34.50.

Open Text Stock Performance

Open Text stock traded up $0.67 during trading hours on Friday, hitting $24.36. The company had a trading volume of 3,251,427 shares, compared to its average volume of 1,993,040. 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 firm has a market cap of $5.90 billion, a PE ratio of 14.37 and a beta of 1.04. The firm has a 50-day moving average of $23.08 and a 200 day moving average of $28.75. Open Text has a one year low of $20.00 and a one year high of $39.90.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its earnings results on Thursday, February 5th. The software maker reported $1.13 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts’ expectations of $1.29 billion. During the same period last year, the firm earned $1.11 earnings per share. The business’s revenue for the quarter was down .6% on a year-over-year basis. On average, sell-side analysts expect that Open Text will post 3.98 earnings per share for the current year.

Hedge Funds Weigh In On Open Text

A number of hedge funds have recently added to or reduced their stakes in the stock. CIBC Private Wealth Group LLC purchased a new position in Open Text during the 3rd quarter worth $33,000. WealthCollab LLC boosted its stake in shares of Open Text by 39.5% in 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 last quarter. Caitong International Asset Management Co. Ltd boosted its stake in shares of Open Text by 5,096.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker’s stock worth $52,000 after buying an additional 1,580 shares during the last quarter. Osaic Holdings Inc. boosted its stake in shares of Open Text by 108.8% in the 2nd quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker’s stock worth $52,000 after buying an additional 937 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of Open Text by 39.7% in 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 last quarter. Institutional investors and hedge funds own 70.37% of the company’s stock.

Open Text News Summary

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.