Zacks Investment Research downgraded shares of Magic Software Enterprises (NASDAQ:MGIC) from a hold rating to a sell rating in a report published on Wednesday morning.

According to Zacks, “Magic Software Enterprises, a member of the Formula Group, develops, markets and supports software development and deployment technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems. Magic technology, applications and professional services are available through a global network of subsidiaries, distributors and Magic solutions partners. (PRESS RELEASE) “

Several other brokerages also recently commented on MGIC. BidaskClub downgraded shares of Magic Software Enterprises from a hold rating to a sell rating in a research report on Wednesday, October 24th. HC Wainwright set a $10.00 price objective on shares of Magic Software Enterprises and gave the company a buy rating in a research report on Wednesday, November 14th. Three investment analysts have rated the stock with a sell rating, one has assigned a hold rating and one has issued a buy rating to the company. The stock has an average rating of Hold and an average price target of $9.75.

Shares of Magic Software Enterprises stock opened at $7.86 on Wednesday. The firm has a market cap of $384.21 million, a PE ratio of 17.09 and a beta of 0.80. Magic Software Enterprises has a 1-year low of $7.75 and a 1-year high of $9.25. The company has a debt-to-equity ratio of 0.10, a quick ratio of 3.91 and a current ratio of 3.91.

Magic Software Enterprises (NASDAQ:MGIC) last issued its quarterly earnings results on Tuesday, November 13th. The software maker reported $0.14 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.16 by ($0.02). The business had revenue of $72.14 million for the quarter, compared to analysts’ expectations of $73.35 million. Magic Software Enterprises had a return on equity of 11.02% and a net margin of 6.88%. As a group, equities analysts expect that Magic Software Enterprises will post 0.57 EPS for the current fiscal year.

Several hedge funds have recently made changes to their positions in MGIC. Acadian Asset Management LLC bought a new stake in shares of Magic Software Enterprises during the 3rd quarter valued at $136,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Magic Software Enterprises during the 3rd quarter valued at $139,000. Jane Street Group LLC bought a new stake in shares of Magic Software Enterprises during the 2nd quarter valued at $259,000. Virtu Financial LLC bought a new stake in shares of Magic Software Enterprises during the 3rd quarter valued at $455,000. Finally, Ramsey Quantitative Systems raised its position in shares of Magic Software Enterprises by 54.4% during the 3rd quarter. Ramsey Quantitative Systems now owns 60,989 shares of the software maker’s stock valued at $518,000 after purchasing an additional 21,479 shares during the period. Hedge funds and other institutional investors own 14.73% of the company’s stock.

About Magic Software Enterprises

Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and IT outsourcing software services in Israel and internationally. The company's Software Services segment develops, markets, sells, and supports a proprietary and none proprietary application platform, software applications, and business and process integration solutions and related services.

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