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 Tuesday . The stock had previously closed at $12.85, but opened at $13.88. Magic Software Enterprises shares last traded at $13.96, with a volume of 74,892 shares.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on MGIC. William Blair cut shares of Magic Software Enterprises from an “outperform” rating to a “market perform” rating in a report on Wednesday. StockNews.com downgraded shares of Magic Software Enterprises from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, February 26th. Finally, Barclays upped their price objective on shares of Magic Software Enterprises from $14.00 to $15.00 and gave the company an “overweight” rating in a research note on Tuesday, November 19th.

Magic Software Enterprises Price Performance

The company has a 50 day moving average of $12.58 and a 200-day moving average of $11.84. The stock has a market capitalization of $686.90 million, a P/E ratio of 19.99 and a beta of 1.11. The company has a quick ratio of 1.76, a current ratio of 1.76 and a debt-to-equity ratio of 0.13.

Magic Software Enterprises (NASDAQ:MGIC) last issued its quarterly earnings results on Tuesday, March 11th. The software maker reported $0.24 EPS for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.01). The business had revenue of $142.58 million for the quarter, compared to analyst estimates of $137.00 million. Magic Software Enterprises had a net margin of 6.49% and a return on equity of 15.42%. Sell-side analysts predict that Magic Software Enterprises Ltd. will post 0.95 EPS for the current year.

Institutional Investors Weigh In On Magic Software Enterprises

Institutional investors have recently bought and sold shares of the business. IFP Advisors Inc raised its stake in shares of Magic Software Enterprises by 100.0% in the 4th quarter. IFP Advisors Inc now owns 4,000 shares of the software maker’s stock valued at $48,000 after acquiring an additional 2,000 shares in the last quarter. Barclays PLC increased its position in shares of Magic Software Enterprises by 4,274.4% during the third quarter. Barclays PLC now owns 5,818 shares of the software maker’s stock valued at $69,000 after purchasing an additional 5,685 shares during the period. Public Employees Retirement System of Ohio bought a new stake in Magic Software Enterprises in the third quarter valued at $115,000. Altshuler Shaham Ltd bought a new stake in Magic Software Enterprises in the fourth quarter valued at $138,000. Finally, Man Group plc bought a new stake in Magic Software Enterprises in the fourth quarter valued at $145,000. 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.