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Open Text Corp. (NASDAQ:OTEX) shares were in a bit of a tailspin last week, as investors took some profits on fears the stock may be overpriced.

"We like Open Text, the company, but are increasingly uneasy with OTEX, the stock," said Tom Liston in a note to clients on Thursday.

The analyst said he is downgrading his Open Text rating from "neutral" to "sell" because the share price is building in expectations that are unreasonable given the current economic maelstrom. He added that he is also concerned by recent and "significant" insider selling. Mr. Liston's C$34 price target remains unchanged.

Mr. Liston wrote:

While we continue to believe Open Text will fare better than most software vendors, we cannot ignore the eroding economic environment and no longer give the company the benefit of the doubt given the stock’s fulsome valuation.

Investors with a long term view will likely benefit over time, but investors should be rewarded by taking profits in the short term at this near all-time share price high.

Since hitting a 52-week high of C$44.60 on Feb. 11, shares in Open Text have given up 6% and trade around C$41.77 on Friday morning.

Source: Open Text: Analyst Uneasiness Over Seemingly Overpriced Stock