Magic Software Enterprises (NASDAQ:MGIC) Stock Rating Lowered by Wall Street Zen

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 researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Separately, Barclays reaffirmed an "overweight" rating and issued a $18.00 price target (up from $16.00) on shares of Magic Software Enterprises in a research note on Wednesday.

Magic Software Enterprises Stock Up 1.8%

Shares of MGIC stock traded up $0.36 on Friday, hitting $20.36. The stock had a trading volume of 18,665 shares, compared to its average volume of 49,034. The stock's 50 day moving average is $19.51 and its 200-day moving average is $15.74. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.61 and a current ratio of 1.61. Magic Software Enterprises has a 52-week low of $10.24 and a 52-week high of $22.00. The firm has a market capitalization of $999.68 million, a price-to-earnings ratio of 26.10 and a beta of 1.04.

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

Institutional Trading of Magic Software Enterprises

A number of institutional investors have recently made changes to their positions in the business. Raymond James Financial Inc. purchased a new position in Magic Software Enterprises in the second quarter valued at $33,000. State of Tennessee Department of Treasury acquired a new position in shares of Magic Software Enterprises during the 2nd quarter valued at $46,000. Geode Capital Management LLC increased its stake in Magic Software Enterprises by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 58,105 shares of the software maker's stock worth $699,000 after buying an additional 2,587 shares during the period. Lazard Asset Management LLC increased its position in shares of Magic Software Enterprises by 45.5% in the 4th quarter. Lazard Asset Management LLC now owns 18,795 shares of the software maker's stock worth $226,000 after purchasing an additional 5,878 shares during the last quarter. Finally, GHP Investment Advisors Inc. boosted its holdings in shares of Magic Software Enterprises by 16.9% in the 1st quarter. GHP Investment Advisors Inc. now owns 56,751 shares of the software maker's stock valued at $737,000 after buying an additional 8,200 shares during the period. Institutional investors and hedge funds 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.