Magic Software Enterprises (NASDAQ:MGIC) Trading Up 4% - Still a Buy?

Key Points

• Magic Software Enterprises' share price rose by 4% on Tuesday, closing at $20.34, despite a significant drop in trading volume.
• Analysts have mixed reviews on the stock; Zacks Research upgraded it to a "strong-buy," while Wall Street Zen lowered it to a "hold."
• The company recently announced a semi-annual dividend of $0.296 per share, which reflects a payout ratio of 75.64%.

Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report)'s share price was up 4% on Tuesday . The stock traded as high as $20.42 and last traded at $20.34. Approximately 7,521 shares were traded during mid-day trading, a decline of 88% from the average daily volume of 60,889 shares. The stock had previously closed at $19.55.

Wall Street Analyst Weigh In

Several research firms have commented on MGIC. Wall Street Zen lowered Magic Software Enterprises from a "buy" rating to a "hold" rating in a research note on Saturday, August 16th. Zacks Research upgraded Magic Software Enterprises from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 15th. Finally, Barclays upped their price target on Magic Software Enterprises from $16.00 to $18.00 and gave the company an "overweight" rating in a research report on Wednesday, August 13th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, Magic Software Enterprises has an average rating of "Buy" and an average target price of $18.00.

Magic Software Enterprises Stock Up 3.8%

The business has a fifty day moving average of $20.17 and a 200 day moving average of $17.29. The stock has a market capitalization of $996.22 million, a price-to-earnings ratio of 26.01 and a beta of 0.95. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.61 and a quick ratio of 1.61.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last released its quarterly earnings results on Wednesday, August 13th. The software maker reported $0.26 EPS for the quarter, topping the consensus estimate of $0.24 by $0.02. The business had revenue of $151.60 million during the quarter, compared to analyst estimates 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. As a group, equities analysts predict that Magic Software Enterprises Ltd. will post 0.95 earnings per share 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. Stockholders of record on Monday, October 6th will be paid a $0.296 dividend. This represents a dividend yield of 290.0%. The ex-dividend date is Monday, October 6th. Magic Software Enterprises's dividend payout ratio (DPR) is presently 75.64%.

Institutional Trading of Magic Software Enterprises

A number of hedge funds and other institutional investors have recently bought and sold shares of MGIC. Raymond James Financial Inc. acquired a new stake in Magic Software Enterprises in the second quarter valued at $33,000. State of Tennessee Department of Treasury purchased a new position in shares of Magic Software Enterprises during the second quarter worth about $46,000. Walleye Capital LLC purchased a new position in shares of Magic Software Enterprises during the first quarter worth about $161,000. Ameriprise Financial Inc. purchased a new position in shares of Magic Software Enterprises during the second quarter worth about $260,000. Finally, Menora Mivtachim Holdings LTD. purchased a new position in shares of Magic Software Enterprises during the first quarter worth about $273,000. 24.70% of the stock is currently owned by institutional investors and hedge funds.

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.

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