Wall Street Zen Downgrades Magic Software Enterprises (NASDAQ:MGIC) to Hold

Key Points

• Magic Software Enterprises has been downgraded to a "hold" rating by Wall Street Zen, moving down from a previous "buy" rating.
• Barclays maintains an "overweight" rating for the company, increasing its price target from $16.00 to $18.00.
• In its recent earnings report, Magic Software posted a net margin of 6.58% and revenue of $151.60 million, which surpassed analysts' expectations.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

Separately, Barclays upped their price target on Magic Software Enterprises from $16.00 to $18.00 and gave the company an "overweight" rating in a research report on Wednesday, August 13th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Buy" and an average target price of $18.00.

Magic Software Enterprises Price Performance

Shares of MGIC traded down $0.53 during midday trading on Friday, reaching $19.75. The stock had a trading volume of 50,305 shares, compared to its average volume of 46,669. The firm's 50 day moving average price is $19.75 and its 200-day moving average price is $15.85. The company has a market capitalization of $969.71 million, a P/E ratio of 25.32 and a beta of 1.04. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.61 and a quick ratio of 1.61. 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, topping analysts' consensus estimates of $0.24 by $0.02. The company had revenue of $151.60 million for the quarter, compared to analyst estimates of $143.06 million. Magic Software Enterprises had a return on equity of 15.85% and a net margin of 6.58%. Magic Software Enterprises has set its FY 2025 guidance at EPS. On average, analysts forecast that Magic Software Enterprises will post 0.95 earnings per share for the current fiscal year.

Institutional Trading of Magic Software Enterprises

Several large investors have recently made changes to their positions in MGIC. Harel Insurance Investments & Financial Services Ltd. bought a new stake in shares of Magic Software Enterprises during the 1st quarter worth about $35,911,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of Magic Software Enterprises by 133.2% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 126,278 shares of the software maker's stock worth $2,415,000 after acquiring an additional 72,117 shares in the last quarter. Y.D. More Investments Ltd boosted its stake in shares of Magic Software Enterprises by 22.1% during the 1st quarter. Y.D. More Investments Ltd now owns 174,366 shares of the software maker's stock worth $2,240,000 after acquiring an additional 31,527 shares in the last quarter. Acadian Asset Management LLC boosted its stake in shares of Magic Software Enterprises by 17.3% during the 2nd quarter. Acadian Asset Management LLC now owns 184,925 shares of the software maker's stock worth $3,525,000 after acquiring an additional 27,294 shares in the last quarter. Finally, Nuveen LLC bought a new stake in shares of Magic Software Enterprises during the 1st quarter worth about $311,000. Institutional investors own 24.70% of the company's stock.

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.