Open Text Corporation (OTEX) Stock Analysis
Technology · Software - Application
Hold if already holding. Not a fresh buy at $22.11, but acceptable to hold if already in. Reasons: Leverage penalty (D/E 1.6): -1.0; Negative momentum.
OpenText is an Information Management software company offering cloud and hybrid solutions across six platforms: Content (40% of FY2025 revenue), Cybersecurity (25%), Business Network (10%), DevOps (10%), Observability and Service Management (10%), and Analytics (5%). Revenue... Read more
Hold if already holding. Not a fresh buy at $22.11, but acceptable to hold if already in. Reasons: Leverage penalty (D/E 1.6): -1.0; Negative momentum. Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 6.0/10, moderate confidence.
Passes 5/8 gates (favorable risk/reward ratio, clean insider activity, earnings proximity 52d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.
Recent developments
updated 2026-06-15Recent Developments — Open Text Corporation
Latest news
- NEWS Open Text Corp. stock outperforms market despite losses on the day - MarketWatch — MarketWatch positive
- NEWS Open Text Corp. stock falls Wednesday, underperforms market - MarketWatch — MarketWatch negative
- NEWS Why OpenText Shares Are Sinking So Sharply - TipRanks — TipRanks negative
- NEWS OTEX Q1 2026 Earnings: EPS Beats Estimates by 7.46% as Stock Declines - ROE Trend Analysis - newsline.com — newsline.com positive
- NEWS OTEX Q1 2026 Earnings: EPS Beats Estimates by 7.46% Despite Stock Pullback - Earnings Manipulation Risk - newsline.com — newsline.com positive
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMProductContent Cloud40%10-K Item 1: 'For the year ended June 30, 2025, total revenues is comprised of 40% from Content Cloud'
Material Events(8-K, last 90d)
- 2026-04-20Item 5.02MEDIUMJames McGourlay transitioned from Interim CEO to President/Chief Client Officer effective April 20, 2026. Paul Duggan stepped down as President/Chief Customer Officer, remaining as EVP Special Advisor until July 1, 2026. No reason cited for Duggan's departure.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $22.11, but acceptable to hold if already in. Reasons: Leverage penalty (D/E 1.6): -1.0; Negative momentum. Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $25.23 (+14.1%), stop $20.63 (−7.2%), A.R:R 1.5:1. Score 6.0/10, moderate confidence.
Take-profit target: $25.23 (+14.0% upside). Target $25.23 (+14.1%), stop $20.63 (−7.2%), A.R:R 1.5:1. Stop-loss: $20.63.
Leverage penalty (D/E 1.6): -1.0; Negative momentum; Below 200-MA, MA slope -3.2%/30d (confirmed downtrend).
Open Text Corporation trades at a P/E of 10.8 (forward 5.0). TrendMatrix value score: 8.7/10. Verdict: Hold.
9 analysts cover OTEX with a consensus score of 4.0/5. Average price target: $29.
What does Open Text Corporation do?OpenText is an Information Management software company offering cloud and hybrid solutions across six platforms:...
OpenText is an Information Management software company offering cloud and hybrid solutions across six platforms: Content (40% of FY2025 revenue), Cybersecurity (25%), Business Network (10%), DevOps (10%), Observability and Service Management (10%), and Analytics (5%). Revenue from cloud subscriptions, managed services, licenses, and professional services serves global enterprises and governments.