Magic Software Enterprises (NASDAQ:MGIC) Shares Gap Down – Time to Sell?

Magic Software Enterprises Ltd. (NASDAQ:MGIC)’s share price gapped down prior to trading 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 trading hands.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on MGIC. Wall Street Zen upgraded Magic Software Enterprises from a “hold” rating to a “buy” rating in a report on Saturday, December 20th. Zacks Research downgraded Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Magic Software Enterprises in a report on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $18.00.

Magic Software Enterprises Stock Performance

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 stock’s 50-day simple moving average is $25.53 and its 200-day simple moving average is $22.27. The stock has a market cap of $1.34 billion, a price-to-earnings ratio of 31.56 and a beta of 0.72.

Magic Software Enterprises (NASDAQ:MGIC) last posted 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). The company had revenue of $161.70 million for the quarter, compared to the consensus estimate of $154.80 million. Magic Software Enterprises had a return on equity of 16.28% and a net margin of 6.61%. Analysts forecast that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current fiscal year.

Magic Software Enterprises Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th were issued a $0.151 dividend. This represents a $0.60 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Monday, December 15th. Magic Software Enterprises’s dividend payout ratio (DPR) is currently 74.07%.

Hedge Funds Weigh In On Magic Software Enterprises

A number of institutional investors have recently modified their holdings of MGIC. Alliancebernstein L.P. bought a new position in Magic Software Enterprises in the third quarter valued at about $2,358,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Magic Software Enterprises by 133.2% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 126,278 shares of the software maker’s stock valued at $2,415,000 after acquiring an additional 72,117 shares during the last quarter. First Trust Advisors LP acquired a new position in Magic Software Enterprises in the 3rd quarter worth about $1,434,000. Susquehanna International Group LLP boosted its stake in shares of 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 in the last quarter. Finally, Y.D. More Investments Ltd grew its holdings 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 purchasing an additional 42,441 shares during the last quarter. Institutional investors and hedge funds 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.