Formula Systems (1985) (NASDAQ:FORTY) Sees Large Volume Increase - Time to Buy?

Key Points

• Trading volume surged 388% to approximately 3,868 shares, while Formula Systems’ stock fell to $113.50 from a prior close of $114.99.
• Analysts maintain a “Hold” consensus, with Weiss Ratings reiterating its “hold (c)” assessment.
• The company announced a $1.63-per-share special dividend, payable October 16 to shareholders of record September 22; its latest quarter included EPS of $1.47.

Formula Systems (1985) Ltd. (NASDAQ:FORTY - Get Free Report) shares saw unusually-high trading volume on Thursday. Approximately 3,868 shares traded hands during trading, an increase of 388% from the previous session's volume of 792 shares. The stock last traded at $113.50 and had previously closed at $114.99.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a "hold (c)" rating on shares of Formula Systems (1985) in a research note on Thursday, August 27th. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat, Formula Systems (1985) presently has a consensus rating of "Hold".

Formula Systems (1985) Price Performance

The stock has a market capitalization of $1.74 billion, a price-to-earnings ratio of 2.85 and a beta of 1.21. The company has a quick ratio of 1.44, a current ratio of 1.48 and a debt-to-equity ratio of 0.13. The business has a 50-day simple moving average of $116.47 and a two-hundred day simple moving average of $121.88.

Formula Systems (1985) (NASDAQ:FORTY - Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The technology company reported $1.47 earnings per share (EPS) for the quarter. Formula Systems (1985) had a return on equity of 4.38% and a net margin of 21.57%.

Formula Systems (1985) Announces Dividend

The company also recently announced a special dividend, which will be paid on Friday, October 16th. Investors of record on Tuesday, September 22nd will be issued a dividend of $1.63 per share. The ex-dividend date of this dividend is Tuesday, September 22nd. Formula Systems (1985)'s payout ratio is presently 4.87%.

Hedge Funds Weigh In On Formula Systems (1985)

Several large investors have recently made changes to their positions in the business. Elevation Point Wealth Partners LLC acquired a new position in shares of Formula Systems (1985) in the 1st quarter worth approximately $206,000. Dimensional Fund Advisors LP boosted its holdings in Formula Systems (1985) by 2.7% during the first quarter. Dimensional Fund Advisors LP now owns 3,315 shares of the technology company's stock worth $391,000 after buying an additional 86 shares in the last quarter. Finally, Altshuler Shaham Ltd grew its position in Formula Systems (1985) by 30.8% in the fourth quarter. Altshuler Shaham Ltd now owns 7,015 shares of the technology company's stock worth $1,182,000 after buying an additional 1,650 shares during the last quarter. Institutional investors own 34.76% of the company's stock.

About Formula Systems (1985)

Formula Systems (1985) Ltd. is an Israeli information technology holding company that invests in and manages businesses providing software, technology consulting and information technology services. The company operates primarily through its subsidiaries and serves enterprises, government organizations and other institutions across a range of industries.

Its principal subsidiaries include Matrix IT, which provides information technology services, systems integration, consulting, outsourcing and cybersecurity solutions; Magic Software Enterprises, which develops application software and provides digital transformation, cloud, data and professional services; and Sapiens International, which supplies software platforms and related services for the insurance industry, including solutions for property and casualty, life and retirement insurance.

Founded in 1985, Formula Systems has expanded its activities beyond Israel through subsidiaries and operating units serving customers in North America, Europe, Israel and other international markets.

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