Magic Software Enterprises (NASDAQ:MGIC) Stock Price Down 3.3% - Here's Why

Key Points

• Magic Software Enterprises stock price fell by 3.3% to $19.51, with trading volume down 80% compared to its average.
• Analyst ratings are mixed, with Barclays upgrading the stock to "overweight," while Wall Street Zen lowered its rating to "hold," and Zacks upgraded it to "strong-buy," reflecting varying market sentiment.
• The company recently announced a semi-annual dividend of $0.296, representing a significant dividend yield of 290.0%, with a payout ratio of 83.33%.

Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report)'s share price dropped 3.3% on Wednesday . The company traded as low as $19.51 and last traded at $19.51. Approximately 12,652 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 62,094 shares. The stock had previously closed at $20.17.

Wall Street Analysts Forecast Growth

MGIC has been the topic of a number of research reports. Barclays boosted their target price on shares of Magic Software Enterprises from $16.00 to $18.00 and gave the stock an "overweight" rating in a report on Wednesday, August 13th. Zacks Research upgraded shares of Magic Software Enterprises from a "hold" rating to a "strong-buy" rating in a report on Friday, August 15th. Finally, Wall Street Zen downgraded shares of 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 given a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $18.00.

Magic Software Enterprises Price Performance

The stock has a market cap of $977.07 million, a price-to-earnings ratio of 25.51 and a beta of 0.95. The stock's 50 day moving average price is $20.35 and its two-hundred day moving average price is $16.99. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.14.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last released its quarterly earnings data 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. The firm had revenue of $151.60 million for 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. Equities research analysts forecast 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. Shareholders of record on Monday, October 6th will be paid a dividend of $0.296 per share. The ex-dividend date of this dividend is Monday, October 6th. This represents a yield of 290.0%. Magic Software Enterprises's payout ratio is 75.64%.

Institutional Investors Weigh In On Magic Software Enterprises

Institutional investors and hedge funds have recently made changes to their positions in the stock. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in shares of Magic Software Enterprises in the 1st quarter valued at approximately $35,911,000. Menora Mivtachim Holdings LTD. purchased a new stake in shares of Magic Software Enterprises in the 1st quarter valued at approximately $273,000. 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 valued at $2,240,000 after purchasing an additional 31,527 shares in the last quarter. Nuveen LLC acquired a new position in shares of Magic Software Enterprises in the first quarter valued at approximately $311,000. Finally, Millennium Management LLC grew its holdings in shares of Magic Software Enterprises by 66.7% in the fourth quarter. Millennium Management LLC now owns 28,599 shares of the software maker's stock valued at $344,000 after purchasing an additional 11,442 shares in the last quarter. 24.70% of the stock is owned by hedge funds and other 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.