Magic Software Enterprises (NASDAQ:MGIC) Hits New 1-Year High - Still a Buy?

Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report) reached a new 52-week high on Tuesday . The company traded as high as $16.50 and last traded at $16.15, with a volume of 131075 shares trading hands. The stock had previously closed at $15.84.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on MGIC. William Blair lowered Magic Software Enterprises from an "outperform" rating to a "market perform" rating in a research note on Wednesday, March 12th. Wall Street Zen cut Magic Software Enterprises from a "strong-buy" rating to a "buy" rating in a report on Saturday. Finally, Barclays lifted their price objective on Magic Software Enterprises from $15.00 to $16.00 and gave the stock an "overweight" rating in a report on Thursday, March 13th.

Magic Software Enterprises Trading Up 0.6%

The firm has a market capitalization of $741.89 million, a price-to-earnings ratio of 21.59 and a beta of 0.99. The company has a fifty day moving average price of $13.80 and a two-hundred day moving average price of $12.82. The company has a current ratio of 1.76, a quick ratio of 1.76 and a debt-to-equity ratio of 0.13.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last released its quarterly earnings results on Wednesday, May 21st. The software maker reported $0.25 EPS for the quarter, meeting the consensus estimate of $0.25. The firm had revenue of $147.34 million for the quarter, compared to analyst estimates of $143.80 million. Magic Software Enterprises had a net margin of 6.49% and a return on equity of 15.42%. As a group, research analysts forecast that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current fiscal year.

Magic Software Enterprises Increases Dividend

The company also recently declared a semi-annual dividend, which was paid on Wednesday, May 7th. Stockholders of record on Tuesday, April 22nd were given a dividend of $0.327 per share. This represents a dividend yield of 4.6%. The ex-dividend date was Tuesday, April 22nd. This is a positive change from Magic Software Enterprises's previous semi-annual dividend of $0.24. Magic Software Enterprises's payout ratio is presently 86.67%.

Institutional Trading of Magic Software Enterprises

Institutional investors have recently made changes to their positions in the company. IFP Advisors Inc raised its position in Magic Software Enterprises by 100.0% in the fourth quarter. IFP Advisors Inc now owns 4,000 shares of the software maker's stock valued at $48,000 after purchasing an additional 2,000 shares during the period. Barclays PLC raised its position in Magic Software Enterprises by 4,274.4% in the third quarter. Barclays PLC now owns 5,818 shares of the software maker's stock valued at $69,000 after purchasing an additional 5,685 shares during the period. Altshuler Shaham Ltd purchased a new stake in Magic Software Enterprises in the fourth quarter valued at approximately $138,000. Man Group plc purchased a new stake in Magic Software Enterprises in the fourth quarter valued at approximately $145,000. Finally, Walleye Capital LLC purchased a new stake in shares of Magic Software Enterprises during the first quarter worth $161,000. Hedge funds and other institutional investors own 24.70% of the company's stock.

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.