Magic Software Enterprises (NASDAQ:MGIC) Cut to "Hold" at Zacks Research

Key Points

• Magic Software Enterprises was downgraded from a "strong-buy" to a "hold" rating by Zacks Research, highlighting a shift in sentiment towards the stock.
• Barclays has increased its price target for the company from $16.00 to $18.00, while other analysts have also adjusted their ratings.
• The company reported a quarterly earnings per share of $0.26, exceeding analyst expectations and lifting its revenue to $151.60 million.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other research analysts have also issued reports on MGIC. Barclays boosted their price objective 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. Wall Street Zen lowered Magic Software Enterprises from a "buy" rating to a "hold" rating in a research report on Saturday, August 16th. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, Magic Software Enterprises has an average rating of "Hold" and an average target price of $18.00.

Magic Software Enterprises Price Performance

Shares of NASDAQ MGIC opened at $20.88 on Monday. Magic Software Enterprises has a twelve month low of $10.42 and a twelve month high of $22.00. 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 company has a market capitalization of $1.03 billion, a price-to-earnings ratio of 26.77 and a beta of 0.91. The business has a 50 day simple moving average of $20.09 and a 200-day simple moving average of $17.80.

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

Institutional Trading of Magic Software Enterprises

Several institutional investors have recently modified their holdings of MGIC. GHP Investment Advisors Inc. raised its position in shares of Magic Software Enterprises by 16.9% during the first quarter. GHP Investment Advisors Inc. now owns 56,751 shares of the software maker's stock worth $737,000 after purchasing an additional 8,200 shares during the period. Harel Insurance Investments & Financial Services Ltd. acquired a new stake in shares of Magic Software Enterprises during the first quarter worth $35,911,000. Phoenix Financial Ltd. raised its position in shares of Magic Software Enterprises by 1.3% during the first quarter. Phoenix Financial Ltd. now owns 689,236 shares of the software maker's stock worth $8,953,000 after purchasing an additional 9,000 shares during the period. Y.D. More Investments Ltd raised its position in shares of Magic Software Enterprises by 22.1% during the first quarter. Y.D. More Investments Ltd now owns 174,366 shares of the software maker's stock worth $2,240,000 after purchasing an additional 31,527 shares during the period. Finally, Nuveen LLC acquired a new stake in shares of Magic Software Enterprises during the first quarter worth $311,000. 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.

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