Magic Software Enterprises (NASDAQ:MGIC) Shares Pass Above 200-Day Moving Average - Time to Sell?

Key Points

• Magic Software Enterprises' stock price recently soared above its 200-day moving average, with recent trading peaks at $19.62.
• Analysts have mixed ratings on the stock, with Barclays upgrading its price target to $18.00 and Zacks Research upgrading to a "strong-buy," while Wall Street Zen lowered its rating to "hold."
• The company reported earnings of $0.26 per share for the last quarter, exceeding expectations, and has set its FY 2025 guidance targeting $0.95 EPS.

Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of $16.33 and traded as high as $19.62. Magic Software Enterprises shares last traded at $19.30, with a volume of 67,762 shares trading hands.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on MGIC shares. Wall Street Zen lowered Magic Software Enterprises from a "buy" rating to a "hold" rating in a research note on Saturday, August 16th. Barclays boosted their price objective 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 research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $18.00.

Magic Software Enterprises Price Performance

The firm has a market capitalization of $964.32 million, a P/E ratio of 25.18 and a beta of 0.95. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.61 and a current ratio of 1.61. The business has a 50 day simple moving average of $20.48 and a two-hundred day simple moving average of $16.49.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 13th. The software maker reported $0.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.24 by $0.02. The firm had revenue of $151.60 million during the quarter, compared to analysts' expectations of $143.06 million. Magic Software Enterprises had a return on equity of 15.85% and a net margin of 6.58%. Magic Software Enterprises has set its FY 2025 guidance at EPS. On average, sell-side analysts expect that Magic Software Enterprises Ltd. will post 0.95 EPS for the current fiscal year.

Magic Software Enterprises Cuts Dividend

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

Institutional Investors Weigh In On Magic Software Enterprises

Several institutional investors have recently bought and sold shares of the stock. Raymond James Financial Inc. purchased a new stake in Magic Software Enterprises in the 2nd quarter worth approximately $33,000. State of Tennessee Department of Treasury bought a new position in Magic Software Enterprises during the 2nd quarter valued at approximately $46,000. Man Group plc bought a new position in Magic Software Enterprises during the 4th quarter valued at approximately $145,000. Walleye Capital LLC bought a new stake in shares of Magic Software Enterprises in the 1st quarter worth $161,000. Finally, Ameriprise Financial Inc. bought a new stake in shares of Magic Software Enterprises in the 2nd quarter worth $260,000. 24.70% of the stock is currently 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.