Formula Systems (1985) (NASDAQ:FORTY) Trading Up 11.9% - Time to Buy?

Key Points

• Shares jumped 11.9% to $148.20 mid-day on Wednesday on very light trading (113 shares, roughly an 80% drop from average daily volume), after closing at $132.48 the prior session.
• Formula Systems reported strong quarterly results—EPS of $35.03 on $708.38M revenue with a 20.89% net margin—and the stock trades at a low P/E of 3.87 with a $2.27B market cap (50-day/200-day moving averages: $126.59 / $146.60).
• Analyst and ownership backdrop: Weiss Ratings reissued a "Hold" and MarketBeat's consensus is "Hold," while institutional investors own about 34.76% of the stock and several funds have recently initiated or increased positions.

Shares of Formula Systems (1985) Ltd. (NASDAQ:FORTY - Get Free Report) were up 11.9% during mid-day trading on Wednesday . The company traded as high as $148.20 and last traded at $148.20. Approximately 113 shares changed hands during trading, a decline of 80% from the average daily volume of 558 shares. The stock had previously closed at $132.48.

Analyst Ratings Changes

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of Formula Systems (1985) in a report on Friday, March 27th. One equities research analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the company has a consensus rating of "Hold".

Formula Systems (1985) Trading Up 4.3%

The firm has a market cap of $2.27 billion, a P/E ratio of 3.87 and a beta of 1.17. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.63 and a quick ratio of 1.61. The stock has a 50 day moving average of $126.59 and a 200 day moving average of $146.60.

Formula Systems (1985) (NASDAQ:FORTY - Get Free Report) last released its earnings results on Thursday, March 26th. The technology company reported $35.03 EPS for the quarter. Formula Systems (1985) had a return on equity of 3.24% and a net margin of 20.89%.The business had revenue of $708.38 million for the quarter.

Institutional Trading of Formula Systems (1985)

A number of institutional investors have recently modified their holdings of FORTY. Raymond James Financial Inc. purchased a new stake in shares of Formula Systems (1985) during the second quarter worth about $73,000. Elevation Point Wealth Partners LLC purchased a new stake in shares of Formula Systems (1985) during the first quarter worth about $206,000. CX Institutional purchased a new stake in shares of Formula Systems (1985) during the third quarter worth about $398,000. GHP Investment Advisors Inc. boosted its holdings in shares of Formula Systems (1985) by 10.8% during the third quarter. GHP Investment Advisors Inc. now owns 7,716 shares of the technology company's stock worth $1,082,000 after purchasing an additional 755 shares during the period. Finally, Altshuler Shaham Ltd boosted its holdings in shares of Formula Systems (1985) by 30.8% during the fourth quarter. Altshuler Shaham Ltd now owns 7,015 shares of the technology company's stock worth $1,182,000 after purchasing an additional 1,650 shares during the period. 34.76% of the stock is currently owned by hedge funds and other institutional investors.

About Formula Systems (1985)

Formula Systems (1985) Ltd is an Israeli publicly traded holding company specializing in the software and information technology sectors. Founded in 1985 and listed on NASDAQ under the ticker FORTY, the company focuses on acquiring, investing in and developing independent software firms. Its core mission is to foster innovation in enterprise software, cybersecurity and digital transformation solutions.

The company's principal activities center on holding controlling and significant equity stakes in several market-leading software enterprises.

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