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

Key Points

• Formula Systems shares opened sharply lower, falling from a prior close of $119.22 to $112.04 before recovering to $117.01; trading volume was light at 444 shares.
• Analyst sentiment remains cautious: Weiss Ratings reiterated a “hold (C)” rating, and the stock has a consensus “Hold” rating from the one analyst tracked by MarketBeat.
• The company reported quarterly EPS of $1.47 and recently paid a special dividend of $1.63 per share. Institutional investors own approximately 34.76% of the stock, while Formula Systems holds technology businesses including Matrix IT, Magic Software, and Sapiens International.

Formula Systems (1985) Ltd. (NASDAQ:FORTY - Get Free Report) shares gapped down prior to trading on Friday. The stock had previously closed at $119.22, but opened at $112.04. Formula Systems (1985) shares last traded at $117.01, with a volume of 444 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 equities research analyst has rated the stock with a Hold rating. According to MarketBeat, Formula Systems (1985) has a consensus rating of "Hold".

Formula Systems (1985) Stock Down 1.9%

The stock has a market capitalization of $1.79 billion, a P/E ratio of 2.94 and a beta of 1.25. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.48 and a quick ratio of 1.44. The stock has a fifty day moving average price of $118.84 and a 200 day moving average price of $120.86.

Formula Systems (1985) (NASDAQ:FORTY - Get Free Report) last released its quarterly earnings data 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 business also recently declared a special dividend, which was paid on Friday, October 16th. Stockholders of record on Tuesday, September 22nd were given a dividend of $1.63 per share. The ex-dividend date was Tuesday, September 22nd. Formula Systems (1985)'s dividend payout ratio is currently 6.03%.

Institutional Investors Weigh In On Formula Systems (1985)

A number of institutional investors and hedge funds have recently modified their holdings of the company. Altshuler Shaham Ltd grew its stake in Formula Systems (1985) by 10.4% during the first quarter. Altshuler Shaham Ltd now owns 7,742 shares of the technology company's stock valued at $926,000 after acquiring an additional 727 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake 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 valued at $391,000 after buying an additional 86 shares during the period. Finally, Elevation Point Wealth Partners LLC bought a new stake in Formula Systems (1985) during the first quarter valued at $206,000. 34.76% of the stock is owned by hedge funds and other institutional investors.

Formula Systems (1985) Company Profile

Formula Systems (1985) Ltd. is an Israel-based holding company that invests in and manages technology businesses. Established in 1985, the company focuses primarily on software, information technology services and technology-enabled business solutions through its principal operating subsidiaries.

Formula Systems' portfolio includes Matrix IT, an Israeli provider of systems integration, consulting, outsourcing, cloud, cybersecurity and other information technology services; Magic Software Enterprises, which provides software development, digital transformation, cloud, data and application integration services; and Sapiens International, a provider of software platforms and solutions for the insurance, financial services and retirement markets.

Through these businesses, Formula Systems serves customers in Israel and international markets, including North America, Europe and the Asia-Pacific region.

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