Formula Systems (1985) (NASDAQ:FORTY) Shares Gap Up - Here's Why

Key Points

• Formula Systems (1985) Ltd. shares gapped up significantly, opening at $118.36 after a previous close of $108.27, indicating bullish market sentiment.
• Wall Street analysts downgraded the stock from a "strong-buy" to a "buy" rating, suggesting a tempered outlook on growth.
• The company declared a semi-annual dividend of $0.9728 per share, a notable increase from its previous dividend, reflecting a positive cash position and shareholder return strategy.

Formula Systems (1985) Ltd. (NASDAQ:FORTY - Get Free Report) shares gapped up before the market opened on Monday . The stock had previously closed at $108.27, but opened at $118.36. Formula Systems (1985) shares last traded at $118.68, with a volume of 636 shares traded.

Analysts Set New Price Targets

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

Formula Systems (1985) Stock Performance

The firm's 50-day simple moving average is $120.26 and its two-hundred day simple moving average is $103.12. The company has a market cap of $1.85 billion, a PE ratio of 23.17 and a beta of 0.93. The company has a current ratio of 1.26, a quick ratio of 1.23 and a debt-to-equity ratio of 0.16.

Formula Systems (1985) (NASDAQ:FORTY - Get Free Report) last announced its quarterly earnings data on Thursday, May 22nd. The technology company reported $1.23 earnings per share (EPS) for the quarter. The firm had revenue of $754.68 million during 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 disclosed a semi-annual dividend, which was paid on Friday, August 1st. Stockholders of record on Monday, July 7th were issued a dividend of $0.9728 per share. This represents a dividend yield of 100.0%. The ex-dividend date was Monday, July 7th. This is an increase from Formula Systems (1985)'s previous semi-annual dividend of $0.69. Formula Systems (1985)'s payout ratio is currently 12.64%.

Hedge Funds Weigh In On Formula Systems (1985)

Large investors have recently added to or reduced their stakes in the company. Elevation Point Wealth Partners LLC bought a new position in Formula Systems (1985) in the 2nd quarter worth approximately $222,000. Raymond James Financial Inc. bought a new stake in shares of Formula Systems (1985) in the second quarter worth about $73,000. Finally, Altshuler Shaham Ltd grew its holdings in shares of Formula Systems (1985) by 7.6% during the fourth quarter. Altshuler Shaham Ltd now owns 6,385 shares of the technology company's stock worth $536,000 after buying an additional 450 shares in the last quarter. 34.76% of the stock is currently owned by institutional investors.

About Formula Systems (1985)

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.