Magic Software Enterprises (NASDAQ:MGIC) Stock Price Passes Above 200-Day Moving Average - Here's What Happened

Key Points

• Magic Software Enterprises' stock price has surpassed its 200-day moving average of $18.05, reaching a high of $20.49 during trading.
• Recent research reports indicate a shift in ratings for the stock, with Wall Street Zen and Zacks Research downgrading it to a hold rating, while Barclays upgraded its price target to $18.00.
• The company has cut its dividend, announcing a payment of $0.296 per share, which reflects a dividend yield of 288.0% and a payout ratio of 75.64%.

Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report)'s share price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $18.05 and traded as high as $20.49. Magic Software Enterprises shares last traded at $20.28, with a volume of 33,936 shares traded.

Analyst Upgrades and Downgrades

MGIC has been the topic of several recent research reports. Wall Street Zen downgraded Magic Software Enterprises from a "buy" rating to a "hold" rating in a research note on Saturday, August 16th. Zacks Research downgraded Magic Software Enterprises from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 13th. Finally, Barclays upped their price target on Magic Software Enterprises from $16.00 to $18.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 13th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $18.00.

Magic Software Enterprises Trading Down 1.6%

The firm has a market cap of $995.73 million, a P/E ratio of 26.00 and a beta of 0.91. The stock has a fifty day simple moving average of $20.14 and a 200 day simple moving average of $18.05. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.61 and a current ratio of 1.61.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last issued its quarterly earnings data on Wednesday, August 13th. The software maker reported $0.26 EPS for the quarter, topping the consensus estimate 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 company had revenue of $151.60 million during the quarter, compared to analyst estimates of $143.06 million. Magic Software Enterprises has set its FY 2025 guidance at EPS. On average, research analysts expect that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current fiscal year.

Magic Software Enterprises Cuts Dividend

The company also recently disclosed a semi-annual dividend, which will be paid on Wednesday, October 22nd. Investors of record on Monday, October 6th will be issued a $0.296 dividend. The ex-dividend date of this dividend is Monday, October 6th. This represents a dividend yield of 288.0%. Magic Software Enterprises's payout ratio is presently 75.64%.

Institutional Trading of Magic Software Enterprises

Several large investors have recently modified their holdings of MGIC. Harel Insurance Investments & Financial Services Ltd. bought a new stake in shares of Magic Software Enterprises in the first quarter worth $35,911,000. Arrowstreet Capital Limited Partnership grew its holdings in shares of Magic Software Enterprises by 133.2% in the second quarter. Arrowstreet Capital Limited Partnership now owns 126,278 shares of the software maker's stock worth $2,415,000 after acquiring an additional 72,117 shares during the period. Y.D. More Investments Ltd grew its holdings in shares of Magic Software Enterprises by 22.1% in the first quarter. Y.D. More Investments Ltd now owns 174,366 shares of the software maker's stock worth $2,240,000 after acquiring an additional 31,527 shares during the period. Acadian Asset Management LLC lifted its position in Magic Software Enterprises by 17.3% during the second quarter. Acadian Asset Management LLC now owns 184,925 shares of the software maker's stock valued at $3,525,000 after purchasing an additional 27,294 shares in the last quarter. Finally, Nuveen LLC bought a new stake in Magic Software Enterprises during the first quarter valued at about $311,000. 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.

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