Open Text (NASDAQ:OTEX) Given New $29.00 Price Target at Barclays

Open Text (NASDAQ:OTEX) (TSE:OTC) had its price objective boosted by Barclays from $27.00 to $29.00 in a research note issued to investors on Friday,Benzinga reports. Barclays currently has an equal weight rating on the software maker’s stock.

OTEX has been the topic of several other reports. Zacks Research raised Open Text from a “strong sell” rating to a “hold” rating in a research note on Monday, October 5th. Weiss Ratings raised Open Text from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, October 14th. 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 research note on Thursday, August 6th. Wall Street Zen raised shares of Open Text from a “hold” rating to a “buy” rating in a research report on Saturday, September 5th. Finally, 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. Three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $30.72.

Open Text Trading Down 4.9%

Shares of NASDAQ:OTEX traded down $1.27 during mid-day trading on Friday, hitting $24.85. The stock had a trading volume of 2,120,515 shares, compared to its average volume of 1,399,378. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.81 and a current ratio of 0.81. The company has a market cap of $6.00 billion, a PE ratio of 9.41 and a beta of 0.98. Open Text has a 12-month low of $19.77 and a 12-month high of $35.65. The company’s 50 day moving average is $24.44 and its 200-day moving average is $23.84.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, November 5th. The software maker reported $1.05 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.11. Open Text had a net margin of 12.26% and a return on equity of 25.76%. The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the previous year, the company posted $1.05 EPS. The company’s quarterly revenue was down 4.0% compared to the same quarter last year. On average, sell-side analysts predict that Open Text will post 3.72 EPS for the current year.

Open Text Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Friday, December 4th will be paid a $0.28 dividend. The ex-dividend date is Friday, December 4th. This represents a $1.12 dividend on an annualized basis and a yield of 4.5%. Open Text’s payout ratio is 43.41%.

Institutional Investors Weigh In On Open Text

Institutional investors have recently made changes to their positions in the company. The Manufacturers Life Insurance Company bought a new position in Open Text during the second quarter valued at approximately $266,599,000. Cibc World Market Inc. bought a new stake in Open Text in the second quarter worth approximately $70,939,000. BlackRock Inc. bought a new stake in Open Text in the second quarter worth approximately $46,144,000. Canada Pension Plan Investment Board acquired a new position in shares of Open Text during the 2nd quarter worth $40,559,000. Finally, Legal & General Group Plc acquired a new position in shares of Open Text during the 2nd quarter worth $31,319,000. 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: 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.

Open Text Company Profile

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.

The company’s portfolio includes enterprise content management, business network and integration services, customer experience tools, cybersecurity and information governance solutions, and software for managing enterprise applications and information technology operations.