Magic Software Enterprises (NASDAQ:MGIC) Sets New 1-Year High – Here’s What Happened

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC) hit a new 52-week high during trading on Tuesday . The company traded as high as $27.16 and last traded at $27.1840, with a volume of 3743 shares traded. The stock had previously closed at $26.74.

Analysts Set New Price Targets

A number of analysts have weighed in on MGIC shares. Zacks Research cut Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 13th. Weiss Ratings reiterated a “hold (c)” rating on shares of Magic Software Enterprises in a report on Monday, December 8th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $18.00.

Magic Software Enterprises Stock Performance

The firm has a fifty day simple moving average of $22.49 and a 200-day simple moving average of $20.55. The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 0.11. The company has a market cap of $1.34 billion, a PE ratio of 33.57 and a beta of 0.71.

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

Magic Software Enterprises Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 30th. Stockholders of record on Monday, December 15th will be issued a $0.151 dividend. This represents a $0.60 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Monday, December 15th. Magic Software Enterprises’s dividend payout ratio is presently 72.84%.

Hedge Funds Weigh In On Magic Software Enterprises

Institutional investors have recently modified their holdings of the business. Alliancebernstein L.P. purchased a new stake in Magic Software Enterprises in the 3rd quarter valued at $2,358,000. Arrowstreet Capital Limited Partnership increased its stake in Magic Software Enterprises by 133.2% in the second quarter. Arrowstreet Capital Limited Partnership now owns 126,278 shares of the software maker’s stock valued at $2,415,000 after purchasing an additional 72,117 shares during the period. First Trust Advisors LP purchased a new stake in shares of Magic Software Enterprises in the third quarter valued at about $1,434,000. Susquehanna International Group LLP raised its holdings in shares of Magic Software Enterprises by 145.3% in the third quarter. Susquehanna International Group LLP now owns 14,589 shares of the software maker’s stock valued at $298,000 after buying an additional 46,789 shares during the last quarter. Finally, Y.D. More Investments Ltd boosted its stake in shares of Magic Software Enterprises by 22.4% during the third quarter. Y.D. More Investments Ltd now owns 231,768 shares of the software maker’s stock worth $4,719,000 after buying an additional 42,441 shares during the period. 24.70% of the stock is 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.