Open Text Corporation (NASDAQ:OTEX) Receives $38.83 Average Target Price from Brokerages

Shares of Open Text Corporation (NASDAQ:OTEX) (TSE:OTC) have been assigned a consensus recommendation of “Hold” from the fifteen research firms that are currently covering the stock, Marketbeat Ratings reports. Eleven investment analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $36.4615.

Several equities analysts recently issued reports on the stock. TD Securities upgraded shares of Open Text to a “hold” rating in a research report on Monday, February 2nd. Canadian Imperial Bank of Commerce reduced their target price on Open Text from $40.00 to $37.00 and set a “neutral” rating on the stock in a report on Friday, January 16th. Jefferies Financial Group increased their target price on Open Text from $33.00 to $35.00 and gave the stock a “hold” rating in a research report on Thursday, November 6th. Citigroup dropped their price target on Open Text from $36.00 to $26.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Zacks Research downgraded Open Text from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th.

Open Text Trading Up 10.0%

NASDAQ OTEX opened at $25.07 on Thursday. The stock has a market cap of $6.31 billion, a P/E ratio of 14.75 and a beta of 1.08. Open Text has a fifty-two week low of $22.44 and a fifty-two week high of $39.90. The stock has a 50 day simple moving average of $31.11 and a two-hundred day simple moving average of $33.46. The company has a debt-to-equity ratio of 1.60, a quick ratio of 0.87 and a current ratio of 0.87.

Open Text (NASDAQ:OTEX) (TSE:OTC) last announced its quarterly earnings results on Thursday, February 5th. The software maker reported $1.13 EPS for the quarter, topping analysts’ consensus estimates of $1.04 by $0.09. The company had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.29 billion. Open Text had a return on equity of 23.66% and a net margin of 8.42%.The firm’s revenue was down .6% on a year-over-year basis. During the same quarter last year, the firm posted $1.11 earnings per share. On average, analysts forecast that Open Text will post 3.45 earnings per share for the current year.

Open Text Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be given a dividend of $0.275 per share. This represents a $1.10 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date of this dividend is Friday, March 6th. Open Text’s dividend payout ratio (DPR) is 64.71%.

More Open Text News

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

• Positive Sentiment: Q2 results beat expectations — EPS $1.13 vs. $1.04 est., revenue roughly $1.32–1.33B vs. $1.29B est.; Content Management cloud revenue grew ~18%, driving improved profitability metrics noted by management. These fundamentals are the main bullish catalyst. OpenText Reports Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Board declared a quarterly dividend of $0.275/share (ex-dividend March 6), implying a ~4.4% yield — supports income investors and can underpin the share price. (Record March 6; payment March 20.)
• Positive Sentiment: Analyst upgrade from TD Securities noted by coverage outlets — upgrades can attract buy-side interest and add momentum. Open Text Upgraded at TD Securities
• Neutral Sentiment: Company updated Q3 and FY-2026 guidance that reads broadly in line with consensus (FY revenue guidance ~ $5.2B–$5.3B); management signaled continued cloud focus but guidance itself was not a clear beat. Earnings Press Release / Slide Deck
• Neutral Sentiment: Raymond James cut its price target from $48 to $42 but retained an “Outperform” rating — a smaller target reduces some upside expectations but the maintained rating keeps institutional interest intact. (Raymond James’ new target was reported as implying significant upside from recent levels.) BayStreet.CA TickerReport
• Negative Sentiment: Analyst and commentary pieces highlight persistent leverage and strategic uncertainty (debt load and M&A integration risks), which could cap multiple expansion despite operational wins. This cautionary view is weighing on some investors. Seeking Alpha: A Different Picture Here

Institutional Investors Weigh In On Open Text

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Norges Bank bought a new stake in shares of Open Text in the 2nd quarter worth approximately $98,882,000. Brandes Investment Partners LP boosted its holdings in Open Text by 42.7% in the second quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker’s stock worth $244,356,000 after acquiring an additional 2,506,058 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. grew its stake in shares of Open Text by 456.0% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 2,312,755 shares of the software maker’s stock worth $86,429,000 after acquiring an additional 1,896,755 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Open Text by 48.9% during the third quarter. Dimensional Fund Advisors LP now owns 2,592,578 shares of the software maker’s stock valued at $96,914,000 after acquiring an additional 851,303 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Open Text by 11.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 7,730,470 shares of the software maker’s stock worth $225,898,000 after purchasing an additional 810,352 shares during the last quarter. Hedge funds and other institutional investors own 70.37% of the company’s stock.

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.