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

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) declared a semi-annual dividend on Thursday, August 14th, Wall Street Journal reports. Stockholders of record on Monday, October 6th will be given a dividend of 0.296 per share by the software maker on Wednesday, October 22nd. This represents a dividend yield of 290.0%. The ex-dividend date of this dividend is Monday, October 6th.

Magic Software Enterprises has a dividend payout ratio of 59.1% indicating that 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 Down 2.4%

Shares of MGIC traded down $0.49 on Thursday, reaching $20.00. The company's stock had a trading volume of 70,417 shares, compared to its average volume of 65,401. The stock has a market capitalization of $981.98 million, a PE ratio of 26.32 and a beta of 1.04. The firm has a fifty day moving average of $19.36 and a 200-day moving average of $15.60. Magic Software Enterprises has a twelve month low of $10.24 and a twelve month high of $22.00. The company has a current ratio of 1.51, a quick ratio of 1.51 and a debt-to-equity ratio of 0.11.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last announced its quarterly earnings results on Wednesday, August 13th. The software maker reported $0.26 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.02. Magic Software Enterprises had a net margin of 6.60% and a return on equity of 15.62%. The company had revenue of $151.60 million for the quarter, compared to analysts' expectations of $143.06 million. Equities analysts predict that Magic Software Enterprises will post 0.95 EPS for the current year.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on MGIC shares. Wall Street Zen downgraded shares of Magic Software Enterprises from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 24th. Barclays reissued an "overweight" rating and issued a $18.00 target price (up previously from $16.00) on shares of Magic Software Enterprises in a report on Wednesday.

Magic Software Enterprises Company Profile

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.

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