Formula Systems (1985) (NASDAQ:FORTY) Shares Gap Down - Should You Sell?

Key Points

• Formula Systems shares dropped sharply: The stock opened at $115 after previously closing at $119.20 and most recently traded at $108.50 on volume of 1,642 shares.
• Analyst sentiment remains cautious: Weiss Ratings reaffirmed a “hold (C)” rating, and the lone analyst tracked by MarketBeat also rates the stock Hold.
• The company declared a special dividend: Shareholders of record on September 22 are scheduled to receive $1.63 per share on October 16, while institutional investors own 34.76% of the stock.

Formula Systems (1985) Ltd. (NASDAQ:FORTY - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $119.20, but opened at $115.00. Formula Systems (1985) shares last traded at $108.50, with a volume of 1,642 shares trading hands.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of Formula Systems (1985) in a report on Thursday, August 27th. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the stock has an average rating of "Hold".

Formula Systems (1985) Stock Performance

The stock's 50-day moving average is $115.62 and its 200-day moving average is $122.52. The company has a current ratio of 1.48, a quick ratio of 1.44 and a debt-to-equity ratio of 0.13. The stock has a market cap of $1.75 billion, a price-to-earnings ratio of 2.86 and a beta of 1.21.

Formula Systems (1985) (NASDAQ:FORTY - Get Free Report) last issued its earnings results on Wednesday, August 26th. The technology company reported $1.47 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 disclosed a special dividend, which will be paid on Friday, October 16th. Investors of record on Tuesday, September 22nd will be given a dividend of $1.63 per share. The ex-dividend date of this dividend is Tuesday, September 22nd. Formula Systems (1985)'s dividend payout ratio (DPR) is presently 4.87%.

Institutional Trading of Formula Systems (1985)

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Elevation Point Wealth Partners LLC bought a new position in shares of Formula Systems (1985) during the first quarter worth about $206,000. Altshuler Shaham Ltd raised its holdings in Formula Systems (1985) by 30.8% in the 4th quarter. Altshuler Shaham Ltd now owns 7,015 shares of the technology company's stock valued at $1,182,000 after acquiring an additional 1,650 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in shares of Formula Systems (1985) by 2.7% during the 1st 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 during the last quarter. 34.76% of the stock is currently owned by institutional investors and hedge funds.

Formula Systems (1985) Company Profile

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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