Magic Software Enterprises (NASDAQ:MGIC) Shares Cross Above 200-Day Moving Average - Should You 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 traded.

Analysts Set New Price Targets

A number of research firms recently issued reports on MGIC. Zacks Research raised shares of Magic Software Enterprises from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 15th. Barclays increased their target price on shares of 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, Wall Street Zen lowered Magic Software Enterprises from a "buy" rating to a "hold" rating in a report on Saturday, August 16th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $18.00.

Magic Software Enterprises Stock Up 0.4%

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 company has a market capitalization of $964.32 million, a PE ratio of 25.18 and a beta of 0.95. The business's 50-day simple moving average is $20.48 and its 200-day simple moving average is $16.44.

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, beating the consensus estimate of $0.24 by $0.02. The firm had revenue of $151.60 million during the quarter, compared to analyst estimates of $143.06 million. Magic Software Enterprises had a net margin of 6.58% and a return on equity of 15.85%. Magic Software Enterprises has set its FY 2025 guidance at EPS. As a group, equities research analysts anticipate that Magic Software Enterprises Ltd. will post 0.95 EPS for the current fiscal year.

Magic Software Enterprises Cuts Dividend

The company also recently announced a semi-annual dividend, which will be paid on Wednesday, October 22nd. Stockholders of record on Monday, October 6th will be issued a dividend of $0.296 per share. 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 83.33%.

Institutional Investors Weigh In On Magic Software Enterprises

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Raymond James Financial Inc. acquired a new stake in Magic Software Enterprises during the 2nd quarter worth $33,000. State of Tennessee Department of Treasury purchased a new stake in Magic Software Enterprises in the 2nd quarter valued at about $46,000. Lazard Asset Management LLC raised its holdings in Magic Software Enterprises by 45.5% in the 4th quarter. Lazard Asset Management LLC now owns 18,795 shares of the software maker's stock valued at $226,000 after buying an additional 5,878 shares during the period. GHP Investment Advisors Inc. increased its stake in Magic Software Enterprises by 16.9% during the first quarter. GHP Investment Advisors Inc. now owns 56,751 shares of the software maker's stock worth $737,000 after purchasing an additional 8,200 shares during the period. Finally, Legal & General Group Plc increased its stake in Magic Software Enterprises by 34.6% during the second quarter. Legal & General Group Plc now owns 32,220 shares of the software maker's stock worth $616,000 after purchasing an additional 8,289 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.