Magic Software Enterprises (NASDAQ:MGIC) Hits New 12-Month High - Should You Buy?

Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $15.32 and last traded at $15.20, with a volume of 84202 shares changing hands. The stock had previously closed at $14.43.

Analysts Set New Price Targets

MGIC has been the topic of several recent analyst reports. William Blair lowered shares of Magic Software Enterprises from an "outperform" rating to a "market perform" rating in a research note on Wednesday, March 12th. Barclays lifted their price target on Magic Software Enterprises from $15.00 to $16.00 and gave the stock an "overweight" rating in a research note on Thursday, March 13th. Finally, StockNews.com upgraded Magic Software Enterprises from a "buy" rating to a "strong-buy" rating in a report on Thursday, March 13th.

Magic Software Enterprises Stock Up 2.3%

The company has a quick ratio of 1.76, a current ratio of 1.76 and a debt-to-equity ratio of 0.13. The stock has a market cap of $795.40 million, a price-to-earnings ratio of 23.14 and a beta of 0.99. The business's fifty day moving average is $13.65 and its two-hundred day moving average is $12.67.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last posted its earnings results on Tuesday, March 11th. The software maker reported $0.24 EPS for the quarter, missing the consensus estimate of $0.25 by ($0.01). Magic Software Enterprises had a net margin of 6.49% and a return on equity of 15.42%. The business had revenue of $142.58 million during the quarter, compared to analysts' expectations of $137.00 million. Equities 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 announced a semi-annual dividend, which was paid on Wednesday, May 7th. Stockholders of record on Tuesday, April 22nd were issued a $0.327 dividend. This is an increase from Magic Software Enterprises's previous semi-annual dividend of $0.24. The ex-dividend date was Tuesday, April 22nd. This represents a dividend yield of 4.6%. Magic Software Enterprises's payout ratio is presently 86.67%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Barclays PLC grew its holdings in Magic Software Enterprises by 4,274.4% during the 3rd quarter. Barclays PLC now owns 5,818 shares of the software maker's stock valued at $69,000 after buying an additional 5,685 shares during the last quarter. JPMorgan Chase & Co. increased its stake in shares of Magic Software Enterprises by 77.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 93,166 shares of the software maker's stock valued at $1,101,000 after acquiring an additional 40,642 shares during the last quarter. Truist Financial Corp purchased a new position in shares of Magic Software Enterprises during the 4th quarter worth about $189,000. IFP Advisors Inc boosted its position in shares of Magic Software Enterprises by 100.0% in the fourth quarter. IFP Advisors Inc now owns 4,000 shares of the software maker's stock worth $48,000 after acquiring an additional 2,000 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Magic Software Enterprises during the fourth quarter worth approximately $1,392,000. 24.70% of the stock is owned by hedge funds and other institutional investors.

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.