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

Company Overview

Magic Software Enterprises Ltd. is a global provider of enterprise software solutions that enable organizations to develop, integrate and manage business applications across cloud and on-premises environments. Serving clients in industries such as financial services, healthcare, manufacturing and distribution, the company’s platforms are designed to accelerate digital transformation by streamlining the creation of web, desktop and mobile applications while ensuring seamless data flow between disparate systems.

The company’s flagship offering, the Magic xpa Application Platform, provides a low-code development environment that simplifies the design, deployment and maintenance of enterprise applications. Complementing this, the Magic xpi Integration Platform delivers prebuilt connectors and orchestration tools that facilitate real-time data exchange between ERP, CRM, databases and cloud services. In addition, Magic Cloud offers a secure, managed infrastructure on which customers can host their Magic-based applications, reducing the operational burden associated with hardware and system administration.

Beyond software licenses, Magic Software supports its solutions with consulting, implementation and managed-services engagements. Its professional services teams work closely with clients to tailor integrations, perform custom development and deliver ongoing support, helping organizations maximize return on investment and adapt to evolving business requirements. The company also fosters a global partner network that includes system integrators and independent software vendors, further extending its market reach and service capabilities.

Founded in 1983 and headquartered in Israel, Magic Software Enterprises maintains regional offices and development centers across North America, Europe and Asia Pacific. The company is publicly traded on the Nasdaq Stock Market under the ticker symbol MGIC and is led by a management team with deep expertise in enterprise software development, integration technology and cloud services.

Key Stats

• Today's Range: $19.33 to $19.63
• 50-Day Range: $18.21 to $21.68
• 52-Week Range: $10.24 to $22.00
• Volume: 42,129 shs
• Average Volume: 42,655 shs
• Market Capitalization: $960.89 million
• P/E Ratio: 25.09
• Dividend Yield: 3.32%
• Price Target: $18.00
• Consensus Rating: Buy

Magic Software Enterprises Stock Analysis - MarketRank™

Magic Software Enterprises scored higher than 28% of companies evaluated by MarketBeat, and ranked 553rd out of 651 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: 1.5 / 5
• Analyst Rating: Buy

Consensus Rating

Magic Software Enterprises has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 1 buy rating, 1 hold rating, and no sell ratings.

Amount of Analyst Coverage

Magic Software Enterprises has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 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 25.09, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 276.59.

Price to Earnings Ratio vs. Sector

The P/E ratio of Magic Software Enterprises is 25.09, 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 436.84.

Price to Book Value per Share Ratio

Magic Software Enterprises has a P/B Ratio of 3.19. 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

1.55% 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 6.2.

Change versus previous month

Short interest in Magic Software Enterprises has recently increased by 20.80%, 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 3.36%, 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 83.33%. 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

1.55% 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 6.2.

Change versus previous month

Short interest in Magic Software Enterprises has recently increased by 20.80%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.1 / 5
• News Sentiment: N/A

News Sentiment

Magic Software Enterprises has a news sentiment score of 0.72. 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 news sentiment score is similar to the average news sentiment 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

1 people have searched for MGIC on MarketBeat in the last 30 days.

MarketBeat Follows

Only 1 people have added Magic Software Enterprises to their MarketBeat watchlist in the last 30 days. This is a decrease of -83% 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 on January 1st, 2025. Since then, MGIC shares have increased by 62.7% and is now trading at $19.57.

How were Magic Software Enterprises' earnings last quarter?

Magic Software Enterprises Ltd. (NASDAQ:MGIC) released its quarterly earnings results on Wednesday, August, 13th. The software maker reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.02. The software maker earned $151.60 million during the quarter, compared to analysts' expectations of $143.06 million. Magic Software Enterprises had a trailing twelve-month return on equity of 15.85% and a net margin of 6.58%.
Read the conference call transcript.

Who are Magic Software Enterprises' major shareholders?

Top institutional shareholders of Magic Software Enterprises include Phoenix Financial Ltd. (1.38%), Y.D. More Investments Ltd (0.39%), Acadian Asset Management LLC (0.38%) and Truffle Hound Capital LLC (0.36%).

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

• Last Earnings: 8/13/2025
• Today: 9/05/2025
• Record date for 10/22 Dividend: 10/06/2025
• Ex-Dividend for 10/22 Dividend: 10/06/2025
• Dividend Payable: 10/22/2025
• Next Earnings (Estimated): 11/17/2025
• 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: $18.00
• High Price Target: $18.00
• Low Price Target: $18.00
• Potential Upside/Downside: -8.0%
• Consensus Rating: Buy
• Rating Score (0-4): 3.00
• Research Coverage: 3 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.78
• Trailing P/E Ratio: 25.09
• Forward P/E Ratio: 20.60
• P/E Growth: N/A
• Net Income: $36.88 million
• Net Margins: 6.58%
• Pretax Margin: 9.86%
• Return on Equity: 15.85%
• Return on Assets: 8.89%

Debt

• Debt-to-Equity Ratio: 0.14
• Current Ratio: 1.61
• Quick Ratio: 1.61

Sales & Book Value

• Annual Sales: $552.52 million
• Price / Sales: 1.74
• Cash Flow: $1.36 per share
• Price / Cash Flow: 14.41
• Book Value: $6.13 per share
• Price / Book: 3.19

Miscellaneous

• Outstanding Shares: 49,100,000
• Free Float: 46,894,000
• Market Cap: $960.89 million
• Optionable: Optionable
• Beta: 0.95