Magic Software Enterprises (NASDAQ:MGIC) Sees Large Volume Increase - Should You Buy?

Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report) shares saw an uptick in trading volume on Tuesday . 49,098 shares traded hands during mid-day trading, a decline of 11% from the previous session's volume of 55,456 shares.The stock last traded at $16.03 and had previously closed at $15.11.

Analyst Ratings Changes

Several brokerages recently weighed in on MGIC. Wall Street Zen downgraded shares of Magic Software Enterprises from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 24th. Barclays boosted their target price on shares of Magic Software Enterprises from $15.00 to $16.00 and gave the company an "overweight" rating in a research note on Thursday, March 13th. Finally, William Blair downgraded shares of Magic Software Enterprises from an "outperform" rating to a "market perform" rating in a research note on Wednesday, March 12th.

Magic Software Enterprises Stock Up 1.5%

The firm's 50 day moving average is $14.03 and its two-hundred day moving average is $12.97. The stock has a market cap of $783.13 million, a price-to-earnings ratio of 22.79 and a beta of 0.99. 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 posted 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 company had revenue of $147.34 million during the quarter, compared to analysts' expectations of $143.80 million. Magic Software Enterprises had a return on equity of 15.42% and a net margin of 6.49%. On average, sell-side analysts predict that Magic Software Enterprises Ltd. will post 0.95 EPS for the current year.

Magic Software Enterprises Increases Dividend

The firm also recently declared a semi-annual dividend, which was paid on Wednesday, May 7th. Shareholders of record on Tuesday, April 22nd were issued a $0.327 dividend. This is a boost from Magic Software Enterprises's previous semi-annual dividend of $0.24. The ex-dividend date was Tuesday, April 22nd. This represents a yield of 4.6%. Magic Software Enterprises's payout ratio is 85.53%.

Institutional Trading of Magic Software Enterprises

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in Magic Software Enterprises in the 1st quarter valued at about $35,911,000. Phoenix Financial Ltd. grew its holdings in Magic Software Enterprises by 1.3% in the 1st quarter. Phoenix Financial Ltd. now owns 689,236 shares of the software maker's stock valued at $8,953,000 after buying an additional 9,000 shares during the period. Truffle Hound Capital LLC purchased a new stake in Magic Software Enterprises in the 4th quarter valued at about $5,173,000. Dimensional Fund Advisors LP grew its holdings in Magic Software Enterprises by 4.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 240,841 shares of the software maker's stock valued at $2,896,000 after buying an additional 9,752 shares during the period. Finally, Y.D. More Investments Ltd grew its holdings in Magic Software Enterprises by 22.1% in the 1st quarter. Y.D. More Investments Ltd now owns 174,366 shares of the software maker's stock valued at $2,240,000 after buying an additional 31,527 shares during the period. 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.