Formula Systems (1985) (NASDAQ:FORTY) Sees Strong Trading Volume - Still a Buy?

Key Points

• Formula Systems (1985) Ltd. experienced a significant increase in trading volume of 89%, trading 1,381 shares on Tuesday, with the stock price rising to $111.89 from a previous close of $108.27.
• Wall Street analysts downgraded the company's rating from "strong-buy" to "buy", indicating a cautious outlook on the stock’s future performance.
• The firm recently announced a semi-annual dividend increase, raising it from $0.69 to $0.9728, resulting in a yield of 100.0%, with a relatively low payout ratio of 12.64%.

Shares of Formula Systems (1985) Ltd. (NASDAQ:FORTY - Get Free Report) saw unusually-strong trading volume on Tuesday . Approximately 1,381 shares were traded during mid-day trading, an increase of 89% from the previous session's volume of 732 shares.The stock last traded at $111.89 and had previously closed at $108.27.

Analyst Ratings Changes

Separately, Wall Street Zen cut shares of Formula Systems (1985) from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 21st.

Formula Systems (1985) Stock Down 3.6%

The firm's 50-day simple moving average is $120.26 and its 200 day simple moving average is $103.12. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.23 and a current ratio of 1.26. The stock has a market capitalization of $1.85 billion, a P/E ratio of 23.17 and a beta of 0.93.

Formula Systems (1985) (NASDAQ:FORTY - Get Free Report) last issued its earnings results on Thursday, May 22nd. The technology company reported $1.23 earnings per share (EPS) for the quarter. The company had revenue of $754.68 million for the quarter. Formula Systems (1985) had a net margin of 2.91% and a return on equity of 6.00%.

Formula Systems (1985) Increases Dividend

The business also recently declared a semi-annual dividend, which was paid on Friday, August 1st. Investors of record on Monday, July 7th were paid a $0.9728 dividend. This is an increase from Formula Systems (1985)'s previous semi-annual dividend of $0.69. The ex-dividend date was Monday, July 7th. This represents a yield of 100.0%. Formula Systems (1985)'s dividend payout ratio (DPR) is currently 12.64%.

Institutional Inflows and Outflows

An institutional investor recently bought a new position in Formula Systems (1985) stock. Elevation Point Wealth Partners LLC bought a new position in shares of Formula Systems (1985) Ltd. (NASDAQ:FORTY - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 1,740 shares of the technology company's stock, valued at approximately $222,000. 34.76% of the stock is owned by institutional investors.

Formula Systems (1985) Company Profile

Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions, IT professional services, software product marketing and support, computer infrastructure and integration solutions, and learning and integration worldwide. The company offers computer and telecommunication infrastructure solutions; and sells and markets computers and peripheral equipment, and cloud based solutions and services relating to databases and big data.