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

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC) gapped up prior to trading 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 changing hands.

Analysts Set New Price Targets

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

Magic Software Enterprises Stock Performance

The company has a fifty day moving average of $21.24 and a two-hundred day moving average of $19.78. The firm has a market capitalization of $1.20 billion, a price-to-earnings ratio of 31.44 and a beta of 0.90. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.61 and a current ratio of 1.61.

Magic Software Enterprises (NASDAQ:MGIC) last issued its quarterly earnings data on Tuesday, November 18th. The software maker reported $0.25 EPS for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.04). Magic Software Enterprises had a net margin of 6.58% and a return on equity of 15.85%. The firm had revenue of $161.70 million during the quarter, compared to analyst estimates of $154.80 million. Magic Software Enterprises has set its FY 2025 guidance at EPS. As a group, equities research analysts predict that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current fiscal year.

Magic Software Enterprises Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th will be paid a $0.151 dividend. The ex-dividend date is Monday, December 15th. This represents a $0.60 annualized dividend and a yield of 2.5%. Magic Software Enterprises’s payout ratio is 74.07%.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Alliancebernstein L.P. acquired a new stake in shares of Magic Software Enterprises in the third quarter valued at approximately $2,358,000. Arrowstreet Capital Limited Partnership increased its stake in Magic Software Enterprises by 133.2% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 126,278 shares of the software maker’s stock worth $2,415,000 after acquiring an additional 72,117 shares during the period. First Trust Advisors LP acquired a new position in Magic Software Enterprises in the 3rd quarter valued at $1,434,000. Susquehanna International Group LLP lifted its position in shares of Magic Software Enterprises by 145.3% during the 3rd quarter. Susquehanna International Group LLP now owns 14,589 shares of the software maker’s stock valued at $298,000 after acquiring an additional 46,789 shares during the period. Finally, Y.D. More Investments Ltd grew its holdings in shares of Magic Software Enterprises by 22.4% during the 3rd quarter. Y.D. More Investments Ltd now owns 231,768 shares of the software maker’s stock worth $4,719,000 after purchasing an additional 42,441 shares in the last quarter. 24.70% of the stock is owned by institutional investors.

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.