Magic Software Enterprises (NASDAQ:MGIC) Shares Gap Up – Should You Buy?

Magic Software Enterprises Ltd. (NASDAQ:MGIC)’s share price gapped up prior to trading on Monday . The stock had previously closed at $15.23, but opened at $16.19. Magic Software Enterprises shares last traded at $16.37, with a volume of 36,863 shares trading hands.

Analyst Ratings Changes

MGIC has been the subject of several recent analyst reports. Wall Street Zen lowered shares of Magic Software Enterprises from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 24th. Barclays boosted their target price on Magic Software Enterprises from $15.00 to $16.00 and gave the stock an “overweight” rating in a research report on Thursday, March 13th. Finally, William Blair lowered Magic Software Enterprises from an “outperform” rating to a “market perform” rating in a research note on Wednesday, March 12th.

Magic Software Enterprises Price Performance

The firm has a market cap of $798.84 million, a P/E ratio of 23.24 and a beta of 1.00. The business has a 50-day simple moving average of $14.64 and a 200 day simple moving average of $13.32. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.76 and a current ratio of 1.76.

Magic Software Enterprises (NASDAQ:MGIC) last announced its quarterly earnings results on Wednesday, May 21st. The software maker reported $0.25 EPS for the quarter, hitting analysts’ consensus estimates of $0.25. Magic Software Enterprises had a return on equity of 15.42% and a net margin of 6.49%. The company had revenue of $147.34 million during the quarter, compared to analyst estimates of $143.80 million. On average, analysts anticipate that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Magic Software Enterprises

Several hedge funds have recently bought and sold shares of MGIC. IFP Advisors Inc lifted its stake in shares of Magic Software Enterprises by 100.0% during the 4th quarter. IFP Advisors Inc now owns 4,000 shares of the software maker’s stock valued at $48,000 after buying an additional 2,000 shares in the last quarter. Geode Capital Management LLC lifted its position in Magic Software Enterprises by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 58,105 shares of the software maker’s stock valued at $699,000 after purchasing an additional 2,587 shares during the last quarter. Lazard Asset Management LLC grew its position 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 worth $226,000 after acquiring an additional 5,878 shares in the last quarter. GHP Investment Advisors Inc. boosted its stake in Magic Software Enterprises by 16.9% during the first quarter. GHP Investment Advisors Inc. now owns 56,751 shares of the software maker’s stock worth $737,000 after buying an additional 8,200 shares during the period. Finally, Phoenix Financial Ltd. raised its position in Magic Software Enterprises by 1.3% in the 1st quarter. Phoenix Financial Ltd. now owns 689,236 shares of the software maker’s stock worth $8,953,000 after purchasing an additional 9,000 shares during the period. Institutional investors own 24.70% of the company’s stock.

About Magic Software Enterprises

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.