Formula Systems (1985) (NASDAQ:FORTY) Shares Gap Up - Time to Buy?

Key Points

• Formula Systems shares opened higher but later traded lower: The stock opened at $128.49 versus a prior close of $122.61, then last traded at $119.88 on light volume. Its market capitalization was approximately $1.84 billion.
• Analysts maintain a cautious outlook: Weiss Ratings reaffirmed a “Hold (C)” rating, and the company has an overall “Hold” consensus rating from the one analyst tracked. Formula Systems reported quarterly EPS of $1.47, with a 21.57% net margin and 4.38% return on equity.
• A special dividend is scheduled: Shareholders of record on September 22 are set to receive a $1.63 per-share dividend on October 16. Institutional investors and hedge funds own 34.76% of the company.

Formula Systems (1985) Ltd. (NASDAQ:FORTY - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $122.61, but opened at $128.49. Formula Systems (1985) shares last traded at $119.88, with a volume of 550 shares.

Analyst Ratings Changes

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

Formula Systems (1985) Stock Down 2.2%

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 firm's 50-day moving average price is $114.49 and its 200 day moving average price is $122.49. The firm has a market capitalization of $1.84 billion, a price-to-earnings ratio of 3.01 and a beta of 1.21.

Formula Systems (1985) (NASDAQ:FORTY - Get Free Report) last announced 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) Dividend Announcement

The company also recently announced a special dividend, which will be paid on Friday, October 16th. Shareholders of record on Tuesday, September 22nd will be issued a $1.63 dividend. This represents a yield of 259.0%. The ex-dividend date is Tuesday, September 22nd. Formula Systems (1985)'s dividend payout ratio is 1.86%.

Hedge Funds Weigh In On Formula Systems (1985)

A number of institutional investors have recently modified their holdings of the company. Altshuler Shaham Ltd boosted its position 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 worth $926,000 after acquiring an additional 727 shares during the last quarter. Dimensional Fund Advisors LP raised 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 valued at $391,000 after acquiring an additional 86 shares during the last quarter. Elevation Point Wealth Partners LLC purchased a new position in shares of Formula Systems (1985) during the 1st quarter worth $206,000. Finally, Raymond James Financial Inc. acquired a new stake in shares of Formula Systems (1985) during the second quarter worth $73,000. Institutional investors and hedge funds own 34.76% of the company's stock.

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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