Magic Software Enterprises (NASDAQ:MGIC) Shares Gap Down – Should You Sell?

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC) gapped down before the market opened on Wednesday . The stock had previously closed at $25.91, but opened at $25.18. Magic Software Enterprises shares last traded at $25.3550, with a volume of 20,428 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. Zacks Research cut Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 13th. Wall Street Zen upgraded shares of Magic Software Enterprises from a “hold” rating to a “buy” rating in a research report on Saturday, December 20th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Magic Software Enterprises in a report on Monday, December 29th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $18.00.

Magic Software Enterprises Price Performance

The firm has a market cap of $1.32 billion, a PE ratio of 33.30 and a beta of 0.72. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.11. The company has a 50 day moving average price of $25.67 and a 200 day moving average price of $22.36.

Magic Software Enterprises (NASDAQ:MGIC) last released its quarterly earnings data on Tuesday, November 18th. The software maker reported $0.25 EPS for the quarter, missing the consensus estimate of $0.29 by ($0.04). Magic Software Enterprises had a return on equity of 16.28% and a net margin of 6.61%.The business had revenue of $161.70 million during the quarter, compared to analysts’ expectations of $154.80 million. On average, sell-side analysts expect that Magic Software Enterprises Ltd. will post 0.95 EPS for the current year.

Magic Software Enterprises Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Monday, December 15th were paid a $0.151 dividend. This represents a $0.60 annualized dividend and a yield of 2.2%. The ex-dividend date was Monday, December 15th. Magic Software Enterprises’s dividend payout ratio is presently 74.07%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Raymond James Financial Inc. acquired a new position in shares of Magic Software Enterprises in the 2nd quarter valued at approximately $33,000. Quent Capital LLC bought a new stake in shares of Magic Software Enterprises in the third quarter worth $41,000. State of Tennessee Department of Treasury acquired a new stake in Magic Software Enterprises in the second quarter valued at $46,000. CWM LLC boosted its stake in Magic Software Enterprises by 1,045.5% during the 3rd quarter. CWM LLC now owns 2,291 shares of the software maker’s stock valued at $47,000 after acquiring an additional 2,091 shares during the last quarter. Finally, IFP Advisors Inc boosted its stake in Magic Software Enterprises by 38.8% during the 3rd quarter. IFP Advisors Inc now owns 2,775 shares of the software maker’s stock valued at $57,000 after acquiring an additional 775 shares during the last quarter. Hedge funds and other institutional investors own 24.70% of the company’s stock.

Magic Software Enterprises Company Profile

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.