Magic Software Enterprises Ltd. Declares Semi-annual Dividend of $0.30 (NASDAQ:MGIC)

Key Points

• Magic Software Enterprises Ltd. declared a semi-annual dividend of $0.30, with an ex-dividend date of October 6th, and will pay the dividend on October 22nd.
• The company's stock experienced a 2.4% decline, reaching $20.00, while its market capitalization stands at approximately $981.98 million.
• Magic Software reported a net margin of 6.60% and surpassed earnings expectations with a quarterly EPS of $0.26, beating the consensus estimate of $0.24.

Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report) announced a semi-annual dividend on Thursday, August 14th, Wall Street Journal reports. Investors of record on Monday, October 6th will be paid a dividend of 0.296 per share by the software maker on Wednesday, October 22nd. This represents a yield of 290.0%. The ex-dividend date of this dividend is Monday, October 6th.

Magic Software Enterprises has a payout ratio of 59.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Magic Software Enterprises to earn $0.99 per share next year, which means the company should continue to be able to cover its $0.65 annual dividend with an expected future payout ratio of 65.7%.

Magic Software Enterprises Stock Performance

NASDAQ MGIC traded up $0.11 during trading hours on Tuesday, hitting $20.28. 30,355 shares of the company's stock traded hands, compared to its average volume of 48,848. The business's fifty day moving average price is $19.68 and its two-hundred day moving average price is $15.83. The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $995.75 million, a P/E ratio of 26.00 and a beta of 1.04. Magic Software Enterprises has a 52 week low of $10.24 and a 52 week high of $22.00.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last announced its earnings results on Wednesday, August 13th. The software maker reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.02. The company had revenue of $151.60 million during the quarter, compared to analyst estimates of $143.06 million. Magic Software Enterprises had a net margin of 6.58% and a return on equity of 15.85%. Magic Software Enterprises has set its FY 2025 guidance at EPS. Equities research analysts predict that Magic Software Enterprises will post 0.95 EPS for the current year.

About Magic Software Enterprises

Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services in Israel and internationally. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services.