Magic Software Enterprises (NASDAQ:MGIC) Shares Gap Up – Time to Buy?

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC) gapped up before the market opened on Monday . The stock had previously closed at $23.08, but opened at $24.19. Magic Software Enterprises shares last traded at $24.3950, with a volume of 12,195 shares.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Magic Software Enterprises in a report on Monday, November 24th. Wall Street Zen downgraded shares of Magic Software Enterprises from a “buy” rating to a “hold” rating in a research note on Saturday, August 16th. Barclays upped their target price on shares of Magic Software Enterprises from $16.00 to $18.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 13th. Finally, Zacks Research lowered shares of Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $18.00.

Magic Software Enterprises Stock Performance

The stock’s 50 day moving average is $21.24 and its two-hundred day moving average is $19.78. The firm has a market capitalization of $1.20 billion, a P/E ratio of 31.44 and a beta of 0.90. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.61 and a quick ratio of 1.61.

Magic Software Enterprises (NASDAQ:MGIC) last released its earnings results on Tuesday, November 18th. The software maker reported $0.25 EPS for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.04). The business had revenue of $161.70 million for the quarter, compared to analyst estimates of $154.80 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. As a group, equities analysts anticipate that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current fiscal year.

Magic Software Enterprises Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th will be issued a dividend of $0.151 per share. The ex-dividend date is Monday, December 15th. This represents a $0.60 dividend on an annualized basis and a yield of 2.5%. Magic Software Enterprises’s dividend payout ratio (DPR) is 74.07%.

Institutional Investors Weigh In On Magic Software Enterprises

Several hedge funds have recently bought and sold shares of MGIC. Susquehanna International Group LLP boosted its position in Magic Software Enterprises by 145.3% during the third quarter. Susquehanna International Group LLP now owns 14,589 shares of the software maker’s stock valued at $298,000 after purchasing an additional 46,789 shares during the last quarter. Alliancebernstein L.P. bought a new stake in shares of Magic Software Enterprises during the 3rd quarter worth approximately $2,358,000. Ameriprise Financial Inc. boosted its holdings in shares of Magic Software Enterprises by 5.6% in the 3rd quarter. Ameriprise Financial Inc. now owns 14,361 shares of the software maker’s stock valued at $293,000 after buying an additional 768 shares during the last quarter. Lazard Asset Management LLC grew its stake in shares of Magic Software Enterprises by 8.9% in the third quarter. Lazard Asset Management LLC now owns 23,779 shares of the software maker’s stock valued at $485,000 after buying an additional 1,938 shares in the last quarter. Finally, UBS Group AG increased its holdings in Magic Software Enterprises by 78.1% during the third quarter. UBS Group AG now owns 91,081 shares of the software maker’s stock worth $1,859,000 after buying an additional 39,940 shares during the last quarter. 24.70% of the stock is currently owned by institutional investors and hedge funds.

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.