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TSE:OTEX

Open Text (OTEX.TO)

31.06
+0.54 (1.77%)
as of Jun 12, 2026, 8:00:00 pm Market Open.
501 watching
0
Investor Insights
star iconJun 14, 2026, 12:00 am

This summary was created by AI, based on 20 opinions in the last 12 months.

Open Text (OTEX) faces significant challenges as the company navigates a disruptive AI landscape that is reshaping software pricing models and contract renewals. Experts highlight a recent selloff, with concerns about its growth strategy, predominantly driven by acquisitions that have not yielded substantial success. The stock has experienced technical breakdowns, slipping below key support levels, and the company's management changes add to investor uncertainty. Despite some potential for recovery, many experts suggest exploring higher-quality software companies with better execution and growth prospects. Overall, OTEX is perceived as struggling with organic growth while competing with stronger players in the industry.

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Consensus
Avoid
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Valuation
Overvalued
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DON'T BUY
Recently bought Hummingbird. Stock has had a pretty good move. Couldn't see the long-term sustainability of this business.
COMMENT
Great little company. Everyone is focusing on their Hummingbird acquisition. Hummingbird's margins are smaller so there will be problems down the road. Trading at 14 X next year's earnings, which is tremendously cheap.
COMMENT
Looks like the stock has a lot of momentum behind it. If it gets up to $26, you are doing well. Use a stop loss of $22.
DON'T BUY
When 2 companies that are really not leaders get together, typically, the sum is not greater than the parts. They did a phenomenal job filling a niche when the Internet/network was first happening. No long-term opportunity.
WEAK BUY
Recently acquired Hummingbird. In the top 20% of his database. Earnings have been bumped up about 4% in the last 90 days. Could be an acquisition target. Doesn’t own, but is seriously considering.
SELL
Has had a nice move off the Hummingbird acquisition. Have been able to get some nice synergies. However, both companies were selling software that was not killer applications.
DON'T BUY
Has had a good run. Acquired Hummingbird (HUM-T) and would give it a quarter or two to see if management has spent too much time on the acquisition trail.
DON'T BUY
Their acquisition of Hummingbird doesn't really do anything for them. It's one sleepy company buying another. They don't have a great track record on acquisitions.
WATCH
The deal with Hummingbird will allow them into areas where they have not been. Have some very interesting software. Ranks 172 which is on the borderline of the top 25%. Watching it closely.
COMMENT
Acquiring Hummingbird (HUM-T) which should be positive. Open Text could also be acquired. Rents neutral in his model at 284. Earnings are expected to grow by the year end June ‘07 from $1.14 to $1.28 against a 13 P/E So it is not terribly expensive.
DON'T BUY
This company has to see licensed growth. Their main source of revenue is off their legacy installed base.
DON'T BUY
They have been on the downside in the trend in technology. They were in a niche for information sharing but the need for that niche is disappearing.
DON'T BUY
Having a little rebound. His sense is that the company is showing that it is turning the corner after stumblig with their European acquisition. Still concerned about their ability to grow. Growth rate going forward is single digits, not double digits.
DON'T BUY
Not growing. Markets are tough. They are looking at making it a more efficient operation. A competitive environment and not sure they can grow their revenue.
PAST TOP PICK
(Past Top Pick April 18/05. Down 17%.) Made a wrong call on this one. It is attractive at the current level. One of the cheapest softwares you can find around. It has problems that he had underestimated. Didn't sell. Believes there is some potential here, but only for people who like risks.
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