Magic Software Enterprises (NASDAQ:MGIC) Shares Down 7.4% – Here’s Why

Magic Software Enterprises Ltd. (NASDAQ:MGIC)’s stock price was down 7.4% during trading on Thursday . The company traded as low as $26.37 and last traded at $24.8240. Approximately 30,928 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 55,148 shares. The stock had previously closed at $26.81.

Wall Street Analyst Weigh In

MGIC has been the topic of several research reports. Zacks Research cut Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 13th. Wall Street Zen upgraded Magic Software Enterprises from a “hold” rating to a “buy” rating in a report on Saturday. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Magic Software Enterprises in a research note on Monday. One 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.com, Magic Software Enterprises presently has a consensus 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 company’s 50-day moving average is $22.94 and its two-hundred day moving average is $20.77. The stock has a market capitalization of $1.29 billion, a P/E ratio of 32.46 and a beta of 0.71.

Magic Software Enterprises (NASDAQ:MGIC) last announced its quarterly earnings results on Tuesday, November 18th. The software maker reported $0.25 EPS 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 analyst estimates of $154.80 million. Magic Software Enterprises had a net margin of 6.61% and a return on equity of 16.28%. As a group, sell-side analysts anticipate that Magic Software Enterprises Ltd. will post 0.95 EPS for the current fiscal year.

Magic Software Enterprises Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th will be paid a dividend of $0.151 per share. The ex-dividend date of this dividend is Monday, December 15th. This represents a $0.60 annualized dividend and a yield of 2.3%. Magic Software Enterprises’s payout ratio is presently 74.07%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of MGIC. Alliancebernstein L.P. bought a new stake in shares of Magic Software Enterprises during the 3rd quarter worth $2,358,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Magic Software Enterprises by 133.2% during 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 last quarter. First Trust Advisors LP acquired a new position in shares of Magic Software Enterprises in the 3rd quarter valued at $1,434,000. Susquehanna International Group LLP increased its stake in Magic Software Enterprises by 145.3% in the 3rd quarter. Susquehanna International Group LLP now owns 14,589 shares of the software maker’s stock worth $298,000 after purchasing an additional 46,789 shares in the last quarter. Finally, Y.D. More Investments Ltd lifted its stake in 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 valued at $4,719,000 after buying an additional 42,441 shares in the last quarter. 24.70% of the stock is owned by institutional investors and hedge funds.

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.