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 significant decline in short interest during the month of August. As of August 31st, there was short interest totaling 199,700 shares, a decline of 50.2% from the August 15th total of 400,800 shares. Currently, 0.8% of the shares of the stock are short sold. Based on an average daily volume of 61,400 shares, the days-to-cover ratio is currently 3.3 days. Based on an average daily volume of 61,400 shares, the days-to-cover ratio is currently 3.3 days. Currently, 0.8% of the shares of the stock are short sold.

Wall Street Analysts Forecast Growth

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MGIC. Raymond James Financial Inc. acquired a new position in Magic Software Enterprises in the second quarter valued at $33,000. State of Tennessee Department of Treasury acquired a new position in Magic Software Enterprises in the second quarter valued at $46,000. Man Group plc acquired a new position in Magic Software Enterprises in the fourth quarter valued at $145,000. Walleye Capital LLC acquired a new position in Magic Software Enterprises in the first quarter valued at $161,000. Finally, Lazard Asset Management LLC boosted its holdings in Magic Software Enterprises by 45.5% in the fourth quarter. Lazard Asset Management LLC now owns 18,795 shares of the software maker's stock valued at $226,000 after acquiring an additional 5,878 shares during the last quarter. Institutional investors and hedge funds own 24.70% of the company's stock.

Magic Software Enterprises Price Performance

Shares of NASDAQ:MGIC opened at $20.43 on Friday. The company has a market cap of $1.00 billion, a P/E ratio of 26.19 and a beta of 0.95. 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 has a 52 week low of $10.42 and a 52 week high of $22.00. The business has a fifty day simple moving average of $20.49 and a 200-day simple moving average of $16.73.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last announced its quarterly earnings data on Wednesday, August 13th. The software maker reported $0.26 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.02. The business had revenue of $151.60 million during the quarter, compared to the consensus estimate of $143.06 million. Magic Software Enterprises had a return on equity of 15.85% and a net margin of 6.58%. Magic Software Enterprises has set its FY 2025 guidance at EPS. Equities research analysts forecast that Magic Software Enterprises will post 0.95 EPS for the current year.

Magic Software Enterprises Cuts Dividend

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

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.

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