Raymond James Financial Has Lowered Expectations for Open Text (NASDAQ:OTEX) Stock Price

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price reduced by investment analysts at Raymond James Financial from $48.00 to $42.00 in a note issued to investors on Friday,BayStreet.CA reports. The brokerage presently has an “outperform” rating on the software maker’s stock. Raymond James Financial’s target price would suggest a potential upside of 67.53% from the stock’s current price.

A number of other equities analysts also recently issued reports on the company. Citigroup lowered their price objective on Open Text from $36.00 to $26.00 and set a “neutral” rating for the company in a research report on Friday. UBS Group set a $26.00 target price on shares of Open Text in a research report on Friday. Royal Bank Of Canada lowered their price target on shares of Open Text from $33.00 to $30.00 and set a “sector perform” rating for the company in a report on Friday. Zacks Research downgraded shares of Open Text from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Finally, Barclays decreased their price objective on shares of Open Text from $39.00 to $30.00 and set an “equal weight” rating for the company in a research report on Friday. Four equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $36.46.

Open Text Price Performance

Shares of NASDAQ:OTEX opened at $25.07 on Friday. 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 has a 52 week low of $22.44 and a 52 week high of $39.90. The firm has a market cap of $6.31 billion, a PE ratio of 14.75 and a beta of 1.08. The firm’s fifty day moving average is $31.11 and its 200-day moving average is $33.46.

Open Text (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Thursday, February 5th. The software maker reported $1.13 earnings per share for the quarter, beating analysts’ consensus estimates of $1.04 by $0.09. The business had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.29 billion. Open Text had a return on equity of 23.66% and a net margin of 8.42%.Open Text’s quarterly revenue was down .6% on a year-over-year basis. During the same period in the prior year, the business posted $1.11 earnings per share. Sell-side analysts predict that Open Text will post 3.45 earnings per share for the current year.

Institutional Investors Weigh In On Open Text

A number of large investors have recently bought and sold shares of the stock. Arkadios Wealth Advisors lifted its position in Open Text by 596.6% in the 3rd quarter. Arkadios Wealth Advisors now owns 83,192 shares of the software maker’s stock valued at $3,110,000 after acquiring an additional 71,249 shares in the last quarter. JARISLOWSKY FRASER Ltd increased its holdings in Open Text by 0.6% during the 3rd quarter. JARISLOWSKY FRASER Ltd now owns 21,150,154 shares of the software maker’s stock worth $790,736,000 after purchasing an additional 117,436 shares in the last quarter. Intact Investment Management Inc. raised its stake in shares of Open Text by 94.9% in the third quarter. Intact Investment Management Inc. now owns 1,175,680 shares of the software maker’s stock worth $43,950,000 after purchasing an additional 572,540 shares during the last quarter. Meritage Portfolio Management lifted its holdings in shares of Open Text by 34.4% in the third quarter. Meritage Portfolio Management now owns 131,407 shares of the software maker’s stock valued at $4,912,000 after purchasing an additional 33,667 shares in the last quarter. Finally, Brandes Investment Partners LP boosted its position in shares of Open Text by 42.7% during the second quarter. Brandes Investment Partners LP now owns 8,368,336 shares of the software maker’s stock valued at $244,356,000 after buying an additional 2,506,058 shares during the last quarter. 70.37% of the stock is currently owned by institutional investors and hedge funds.

Key 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

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.