Open Text (NASDAQ:OTEX) Stock Rating Cut to Hold at Wall Street Zen

08 Nov 2026, 10:57 by Tristan Rich · The Markets Daily

Wall Street Zen cut shares of Open Text (NASDAQ:OTEX – Free Report) (TSE:OTC) from a buy rating to a hold rating in a research note issued to investors on Saturday,Wall Street Zen reports.

A number of other equities analysts have also recently commented on the company. Raymond James Financial cut Open Text from an “outperform” rating to a “market perform” rating and lowered their target price for the company from $35.00 to $29.50 in a report on Thursday, August 6th. Scotiabank cut their price target on shares of Open Text from $40.00 to $33.00 and set a “sector outperform” rating on the stock in a research note on Friday, August 7th. Citigroup increased their price target on shares of Open Text from $25.00 to $28.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Weiss Ratings raised shares of Open Text from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, October 14th. Finally, Scotia lowered their price objective on shares of Open Text from $40.00 to $33.00 and set a “sector outperform” rating for the company in a research note on Friday, August 7th. Three equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $30.72.

Read Our Latest Analysis on OTEX

Open Text Stock Down 4.9%

NASDAQ:OTEX opened at $24.85 on Friday. Open Text has a 52 week low of $19.77 and a 52 week high of $35.65. The stock’s fifty day moving average is $24.44 and its two-hundred day moving average is $23.84. The stock has a market capitalization of $6.00 billion, a price-to-earnings ratio of 9.41 and a beta of 0.98. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.43.

Open Text (NASDAQ:OTEX – Get Free Report) (TSE:OTC) last issued its quarterly earnings data on Thursday, November 5th. The software maker reported $1.05 earnings per share for the quarter, beating analysts’ consensus estimates of $0.94 by $0.11. The business had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.22 billion. Open Text had a return on equity of 25.39% and a net margin of 12.54%. The company’s revenue was down 4.0% on a year-over-year basis. During the same period in the previous year, the firm posted $1.05 earnings per share. Research analysts anticipate that Open Text will post 3.72 EPS for the current year.

Open Text Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, December 4th will be paid a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 4.5%. The ex-dividend date is Friday, December 4th. Open Text’s dividend payout ratio (DPR) is presently 43.41%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of OTEX. The Manufacturers Life Insurance Company acquired a new position in Open Text during the 2nd quarter worth $266,599,000. Royal Bank of Canada raised its position in Open Text by 10.9% in the 1st quarter. Royal Bank of Canada now owns 9,843,494 shares of the software maker’s stock valued at $218,920,000 after purchasing an additional 965,385 shares in the last quarter. Letko Brosseau & Associates Inc. raised its position in Open Text by 0.3% in the 3rd quarter. Letko Brosseau & Associates Inc. now owns 8,866,816 shares of the software maker’s stock valued at $199,289,000 after purchasing an additional 29,188 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Open Text by 24.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,142,610 shares of the software maker’s stock valued at $92,120,000 after buying an additional 802,276 shares during the period. Finally, Cibc World Market Inc. purchased a new position in shares of Open Text in the 2nd quarter valued at about $70,939,000. 70.37% of the stock is currently owned by hedge funds and other institutional investors.

More Open Text News

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

Positive Sentiment: Open Text earned $1.05 per share, ahead of the $0.94 consensus, and revenue of $1.24 billion topped estimates of $1.22 billion. Core revenue grew 2% year over year, core cloud revenue rose 11%, and adjusted EBITDA margin was 35.8%. OpenText first-quarter fiscal 2027 results
Positive Sentiment: Barclays raised its price target from $27 to $29, implying 16.6% upside from the cited share price. Its rating remains “equal weight,” however, signaling a broadly market-level view.
Positive Sentiment: The company declared a quarterly dividend of $0.28 per share, equivalent to $1.12 annually and a stated yield of about 4.3%.
Neutral Sentiment: Second-quarter revenue guidance of $1.3 billion is in line with analyst consensus.
Negative Sentiment: Fiscal 2027 revenue guidance of $5.1 billion–$5.2 billion has a midpoint below the $5.2 billion consensus, a modest forecast shortfall that could temper the earnings beat.
Negative Sentiment: Despite beating estimates, quarterly revenue declined 4% year over year, and EPS was unchanged from the same quarter last year. That weak growth comparison may limit the positive impact of the results.

About Open Text

(Get Free Report)

OpenText Corporation is a Canadian enterprise software company that develops solutions for managing, securing and exchanging business information. Its offerings help organizations organize content, automate business processes, connect with customers and partners, and manage information across cloud, on-premises and hybrid environments.