Magic Software Enterprises (MGIC) Stock Price, News & Analysis

Company Overview

Magic Software Enterprises Ltd. (NASDAQ: MGIC) is a global technology company specializing in integration platform as a service (iPaaS) and low-code application development solutions. Founded in 1983 and headquartered in Or Yehuda, Israel, the company has built its reputation on enabling businesses to connect disparate systems, automate processes and accelerate the delivery of enterprise-grade applications. Its offerings cater to organizations seeking to modernize legacy systems, streamline data flows and enhance operational agility across diverse IT environments.

The company’s flagship product, Magic xpi Integration Platform, provides a unified framework for real-time data exchange between on-premises and cloud applications. Complementing xpi, Magic’s application development suite—including Magic xpa Application Platform and mobile app tools—allows non-technical users and professional developers alike to design, build and deploy custom workflows, dashboards and mobile solutions with minimal coding. These platforms support a broad range of use cases, from order management and supply chain automation to customer relationship management and field service operations.

In addition to its software portfolio, Magic Software offers professional services that encompass technical consulting, implementation, training and ongoing support. The company’s global services teams work closely with clients in industries such as manufacturing, healthcare, insurance, retail, telecommunications and public sector to ensure successful project delivery and rapid return on investment. Magic’s emphasis on customer-driven modernizations has earned it long-standing partnerships with organizations spanning North America, Europe, Asia-Pacific and Latin America.

Over the years, Magic Software has expanded through organic growth and targeted acquisitions to broaden its integration, analytics and application development capabilities. A member of the Nasdaq stock exchange since 2018, it is steered by a seasoned executive leadership team with deep expertise in enterprise software, digital transformation and international markets. This leadership continues to oversee Magic’s strategy of innovation, platform enhancement and global expansion to meet evolving enterprise IT requirements.

Key Stats

• Today's Range: $21.04 to $21.37
• 50-Day Range: $14.43 to $21.67
• 52-Week Range: $9.64 to $22.00
• Volume: 38,593 shs
• Average Volume: 60,100 shs
• Market Capitalization: $1.04 billion
• P/E Ratio: 27.80
• Dividend Yield: 3.08%
• Price Target: $16.00
• Consensus Rating: Moderate Buy

Magic Software Enterprises Stock Analysis - MarketRank™

Magic Software Enterprises scored higher than 25% of companies evaluated by MarketBeat, and ranked 552nd out of 666 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Magic Software Enterprises has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 1 buy rating, 1 hold rating, and no sell ratings.

Amount of Analyst Coverage

Magic Software Enterprises has received no research coverage in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: 4.21%

Earnings Growth

Earnings for Magic Software Enterprises are expected to grow by 4.21% in the coming year, from $0.95 to $0.99 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Magic Software Enterprises is 27.80, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 26.51.

Price to Earnings Ratio vs. Sector

The P/E ratio of Magic Software Enterprises is 27.80, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 33.59.

Price to Book Value per Share Ratio

Magic Software Enterprises has a P/B Ratio of 3.45. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

1.24% of the float of Magic Software Enterprises has been sold short.

Short Interest Ratio / Days to Cover

Magic Software Enterprises has a short interest ratio ("days to cover") of 5.

Change versus previous month

Short interest in Magic Software Enterprises has recently increased by 22.44%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Magic Software Enterprises pays a meaningful dividend of 3.14%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Magic Software Enterprises has only been increasing its dividend for 1 years.

Dividend Coverage

The dividend payout ratio of Magic Software Enterprises is 85.53%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on earnings estimates, Magic Software Enterprises will have a dividend payout ratio of 65.66% next year. This indicates that Magic Software Enterprises will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

1.24% of the float of Magic Software Enterprises has been sold short.

Short Interest Ratio / Days to Cover

Magic Software Enterprises has a short interest ratio ("days to cover") of 5.

Change versus previous month

Short interest in Magic Software Enterprises has recently increased by 22.44%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 3.6 / 5
• News Sentiment: N/A

News Sentiment

Magic Software Enterprises has a news sentiment score of 1.50. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.83 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 1 news article for Magic Software Enterprises this week, compared to 2 articles on an average week.

Search Interest

4 people have searched for MGIC on MarketBeat in the last 30 days. This is an increase of 33% compared to the previous 30 days.

MarketBeat Follows

3 people have added Magic Software Enterprises to their MarketBeat watchlist in the last 30 days. This is an increase of 200% compared to the previous 30 days.

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Magic Software Enterprises insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 4.49% of the stock of Magic Software Enterprises is held by insiders.

Percentage Held by Institutions

Only 24.70% of the stock of Magic Software Enterprises is held by institutions.

MGIC Stock Analysis - Frequently Asked Questions

How have MGIC shares performed this year?

Magic Software Enterprises' stock was trading at $12.03 at the start of the year. Since then, MGIC shares have increased by 75.6% and is now trading at $21.13.

How were Magic Software Enterprises' earnings last quarter?

Magic Software Enterprises Ltd. (NASDAQ:MGIC) posted its earnings results on Wednesday, May, 21st. The software maker reported $0.25 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.25. The software maker had revenue of $147.34 million for the quarter, compared to analysts' expectations of $143.80 million. Magic Software Enterprises had a trailing twelve-month return on equity of 15.62% and a net margin of 6.60%.
Read the conference call transcript.

Who are Magic Software Enterprises' major shareholders?

Magic Software Enterprises' top institutional shareholders include Public Employees Retirement System of Ohio (0.02%).

How do I buy shares of Magic Software Enterprises?

Shares of MGIC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Magic Software Enterprises own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Magic Software Enterprises investors own include YETI (YETI), Enterprise Products Partners (EPD), Innovative Industrial Properties (IIPR), Academy Sports and Outdoors (ASO), AbbVie (ABBV) and NVIDIA (NVDA).

Company Calendar

• Record date for 5/7 Dividend: 4/22/2025
• Ex-Dividend for 5/7 Dividend: 4/22/2025
• Dividend Payable: 5/07/2025
• Last Earnings: 5/21/2025
• Today: 7/18/2025
• Next Earnings (Estimated): 8/13/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: COMP - SOFTWARE
• Sub-Industry: Computer Software
• Current Symbol: NASDAQ:MGIC
• CIK: 876779
• Web: www.magicsoftware.com
• Phone: (723) 538-9292
• Fax: 972-3538-9333
• Employees: 3,787
• Year Founded: 1983

Price Target and Rating

• Average Price Target for Magic Software Enterprises: $16.00
• High Price Target: $16.00
• Low Price Target: $16.00
• Potential Upside/Downside: -24.1%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 2 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.76
• Trailing P/E Ratio: 27.75
• Forward P/E Ratio: 22.18
• P/E Growth: N/A
• Net Income: $36.88 million
• Net Margins: 6.60%
• Pretax Margin: 9.93%
• Return on Equity: 15.62%
• Return on Assets: 8.76%

Debt

• Debt-to-Equity Ratio: 0.11
• Current Ratio: 1.51
• Quick Ratio: 1.51

Sales & Book Value

• Annual Sales: $552.52 million
• Price / Sales: 1.87
• Cash Flow: $1.37 per share
• Price / Cash Flow: 15.39
• Book Value: $6.13 per share
• Price / Book: 3.44

Miscellaneous

• Outstanding Shares: 49,100,000
• Free Float: 46,894,000
• Market Cap: $1.03 billion
• Optionable: Optionable
• Beta: 1.04