Magic Software Enterprises (NASDAQ:MGIC) Stock Price Passes Above 200 Day Moving Average - Time to Sell?

Key Points

• Magic Software Enterprises Ltd.'s stock price recently crossed above its 200-day moving average, trading at a high of $20.49, compared to the moving average of $15.60.
• Barclays has upgraded its rating on the stock to "overweight" with a price target increased to $18.00, while Wall Street Zen downgraded it from "strong-buy" to "buy."
• For its latest quarter, the company reported earnings of $0.26 per share, exceeding estimates and achieving revenue of $151.60 million.

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $15.60 and traded as high as $20.49. Magic Software Enterprises shares last traded at $20.49, with a volume of 101,646 shares traded.

Wall Street Analyst Weigh In

MGIC has been the topic of a number of research analyst reports. Wall Street Zen downgraded Magic Software Enterprises from a "buy" rating to a "hold" rating in a report on Saturday. Barclays reiterated an "overweight" rating and set a $18.00 target price (up previously from $16.00) on shares of Magic Software Enterprises in a report on Wednesday.

Magic Software Enterprises Price Performance

The business has a fifty day simple moving average of $19.51 and a two-hundred day simple moving average of $15.74. 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 stock has a market cap of $981.02 million, a PE ratio of 25.62 and a beta of 1.04.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last posted its earnings results on Wednesday, August 13th. The software maker reported $0.26 earnings per share for the quarter, topping 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 firm had revenue of $151.60 million for the quarter, compared to the consensus estimate of $143.06 million. Research analysts forecast that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current year.

Magic Software Enterprises Cuts Dividend

The business also recently declared a semi-annual dividend, which will be paid on Wednesday, October 22nd. Stockholders of record on Monday, October 6th will be given a $0.296 dividend. This represents a dividend yield of 290.0%. The ex-dividend date of this dividend is Monday, October 6th. Magic Software Enterprises's payout ratio is currently 83.33%.

Institutional Trading of Magic Software Enterprises

Hedge funds have recently made changes to their positions in the stock. Raymond James Financial Inc. bought a new stake in shares of Magic Software Enterprises in the 2nd quarter worth approximately $33,000. State of Tennessee Department of Treasury bought a new stake in shares of Magic Software Enterprises in the 2nd quarter worth approximately $46,000. Man Group plc bought a new stake in shares of Magic Software Enterprises in the 4th quarter worth approximately $145,000. Walleye Capital LLC bought a new position in Magic Software Enterprises in the 1st quarter valued at approximately $161,000. Finally, Ameriprise Financial Inc. bought a new position in Magic Software Enterprises in the 2nd quarter valued at approximately $260,000. 24.70% of the stock is owned by institutional investors.

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.