Formula Systems (1985) (NASDAQ:FORTY) Shares Gap Up - Still a Buy?

Key Points

• Formula Systems shares jumped 8.5%, opening at $126 after previously closing at $117 and later trading at $127.12 on relatively light volume.
• Analysts maintain a cautious outlook: Weiss Ratings reiterated a “Hold (C)” rating, while the sole analyst covering the stock also rates it Hold.
• The company reported quarterly earnings of $1.47 per share, a 21.57% net margin, and recently paid a special dividend of $1.63 per share; institutional investors own 34.76% of the stock.

Formula Systems (1985) Ltd. (NASDAQ:FORTY - Get Free Report) shares gapped up before the market opened on Monday. The stock had previously closed at $117.00, but opened at $126.00. Formula Systems (1985) shares last traded at $127.12, with a volume of 605 shares.

Wall Street Analysts Forecast Growth

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

Formula Systems (1985) Stock Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.44 and a current ratio of 1.48. The stock has a market cap of $1.95 billion, a P/E ratio of 3.19 and a beta of 1.25. The company's 50 day moving average price is $118.99 and its 200-day moving average price is $120.81.

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

Formula Systems (1985) Announces Dividend

The company also recently announced a special dividend, which was paid on Friday, October 16th. Shareholders of record on Tuesday, September 22nd were given a dividend of $1.63 per share. The ex-dividend date of this dividend was Tuesday, September 22nd. Formula Systems (1985)'s dividend payout ratio (DPR) is currently 6.03%.

Hedge Funds Weigh In On Formula Systems (1985)

Several institutional investors have recently modified their holdings of FORTY. Altshuler Shaham Ltd lifted its position in shares of Formula Systems (1985) by 10.4% during the 1st quarter. Altshuler Shaham Ltd now owns 7,742 shares of the technology company's stock valued at $926,000 after buying an additional 727 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Formula Systems (1985) by 2.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,315 shares of the technology company's stock worth $391,000 after acquiring an additional 86 shares during the last quarter. Finally, Elevation Point Wealth Partners LLC purchased a new stake in Formula Systems (1985) in the 1st quarter worth about $206,000. 34.76% of the stock is owned by 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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