Short Interest in Magic Software Enterprises Ltd. (NASDAQ:MGIC) Drops By 50.2%

Key Points

• Short interest in Magic Software Enterprises Ltd. (NASDAQ:MGIC) saw a significant decline of 50.2% in August, dropping from 400,800 shares to 199,700 shares.
• Wall Street analysts have mixed ratings for MGIC, with Barclays increasing the price target from $16.00 to $18.00 and Zacks upgrading it to a strong-buy rating.
• The company reported quarterly earnings of $0.26 EPS, surpassing estimates, and announced a semi-annual dividend of $0.296 with a payout ratio of 83.33%.

Magic Software Enterprises Ltd. (NASDAQ:MGIC - Get Free Report) was the recipient of a large decrease in short interest during the month of August. As of August 31st, there was short interest totaling 199,700 shares, a decrease of 50.2% from the August 15th total of 400,800 shares. Based on an average trading volume of 61,400 shares, the days-to-cover ratio is presently 3.3 days. Approximately 0.8% of the company's shares are sold short. Approximately 0.8% of the company's shares are sold short. Based on an average trading volume of 61,400 shares, the days-to-cover ratio is presently 3.3 days.

Wall Street Analysts Forecast Growth

MGIC has been the topic of several research reports. Wall Street Zen downgraded shares of Magic Software Enterprises from a "buy" rating to a "hold" rating in a research report on Saturday, August 16th. Zacks Research upgraded shares of Magic Software Enterprises from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 15th. Finally, Barclays lifted their price target on shares of Magic Software Enterprises from $16.00 to $18.00 and gave the stock an "overweight" rating in a report on Wednesday, August 13th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $18.00.

Magic Software Enterprises Stock Performance

MGIC stock traded down $0.05 during midday trading on Friday, hitting $19.76. 15,520 shares of the company traded hands, compared to its average volume of 61,988. The stock has a market capitalization of $970.22 million, a price-to-earnings ratio of 25.33 and a beta of 0.95. Magic Software Enterprises has a twelve month low of $10.42 and a twelve month high of $22.00. The business has a 50 day simple moving average of $20.38 and a 200-day simple moving average of $16.90. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.14.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last issued its earnings results on Wednesday, August 13th. The software maker reported $0.26 EPS for the quarter, topping the consensus estimate of $0.24 by $0.02. Magic Software Enterprises had a return on equity of 15.85% and a net margin of 6.58%.The firm had revenue of $151.60 million during the quarter, compared to analysts' expectations of $143.06 million. Magic Software Enterprises has set its FY 2025 guidance at EPS. As a group, equities research analysts predict that Magic Software Enterprises will post 0.95 earnings per share for the current year.

Magic Software Enterprises Cuts Dividend

The company also recently announced a semi-annual dividend, which will be paid on Wednesday, October 22nd. Shareholders of record on Monday, October 6th will be paid a $0.296 dividend. The ex-dividend date is Monday, October 6th. This represents a yield of 290.0%. Magic Software Enterprises's payout ratio is presently 83.33%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Harel Insurance Investments & Financial Services Ltd. bought a new position in Magic Software Enterprises in the first quarter valued at about $35,911,000. Menora Mivtachim Holdings LTD. bought a new stake in shares of Magic Software Enterprises during the first quarter valued at approximately $273,000. Y.D. More Investments Ltd increased its holdings in shares of Magic Software Enterprises by 22.1% during the first quarter. Y.D. More Investments Ltd now owns 174,366 shares of the software maker's stock valued at $2,240,000 after acquiring an additional 31,527 shares in the last quarter. Nuveen LLC purchased a new position in shares of Magic Software Enterprises during the first quarter valued at approximately $311,000. Finally, Millennium Management LLC boosted its position in shares of Magic Software Enterprises by 66.7% during the fourth quarter. Millennium Management LLC now owns 28,599 shares of the software maker's stock valued at $344,000 after buying an additional 11,442 shares during the last quarter. 24.70% of the stock is owned by institutional investors and hedge funds.

Magic Software Enterprises Company Profile

Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services in Israel and internationally. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services.