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

Key Points

• Magic Software Enterprises' stock price has exceeded its 200-day moving average of $16.04, trading at $20.47 on Monday, indicating potential upward momentum.
• Zacks Research upgraded the stock from a "hold" to a "strong-buy" rating, while Barclays raised its target price from $16.00 to $18.00, suggesting positive sentiment among analysts.
• The company recently announced a semi-annual dividend of $0.296 per share, despite a high payout ratio of 83.33%, reflecting its commitment to returning value to shareholders.

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $16.04 and traded as high as $20.87. Magic Software Enterprises shares last traded at $20.47, with a volume of 39,455 shares trading hands.

Analyst Ratings Changes

A number of equities research analysts have issued reports on MGIC shares. Wall Street Zen cut Magic Software Enterprises from a "buy" rating to a "hold" rating in a research note on Saturday, August 16th. Barclays raised their target price on Magic Software Enterprises from $16.00 to $18.00 and gave the company an "overweight" rating in a research note on Wednesday, August 13th. Finally, Zacks Research upgraded Magic Software Enterprises from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $18.00.

Magic Software Enterprises Trading Down 0.9%

The business's 50 day moving average is $20.31 and its two-hundred day moving average is $16.25. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $996.73 million, a P/E ratio of 26.03 and a beta of 0.95.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last issued its quarterly earnings data 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 net margin of 6.58% and a return on equity of 15.85%. The business had revenue of $151.60 million for the quarter, compared to analysts' expectations of $143.06 million. Magic Software Enterprises has set its FY 2025 guidance at EPS. Analysts expect that Magic Software Enterprises Ltd. will post 0.95 EPS for the current year.

Magic Software Enterprises Cuts Dividend

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

Institutional Investors Weigh In On Magic Software Enterprises

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Harel Insurance Investments & Financial Services Ltd. bought a new stake in Magic Software Enterprises in the first quarter worth about $35,911,000. Phoenix Financial Ltd. raised its position in Magic Software Enterprises by 1.3% in the first quarter. Phoenix Financial Ltd. now owns 689,236 shares of the software maker's stock worth $8,953,000 after acquiring an additional 9,000 shares in the last quarter. Dimensional Fund Advisors LP raised its position in Magic Software Enterprises by 4.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 240,841 shares of the software maker's stock worth $2,896,000 after acquiring an additional 9,752 shares in the last quarter. Y.D. More Investments Ltd raised its position in Magic Software Enterprises by 8.6% in the second quarter. Y.D. More Investments Ltd now owns 189,327 shares of the software maker's stock worth $3,616,000 after acquiring an additional 14,961 shares in the last quarter. Finally, Acadian Asset Management LLC raised its position in Magic Software Enterprises by 17.3% in the second quarter. Acadian Asset Management LLC now owns 184,925 shares of the software maker's stock worth $3,525,000 after acquiring an additional 27,294 shares in the last quarter. 24.70% of the stock is currently 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.