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

Magic Software Enterprises Ltd. (NASDAQ:MGIC) gapped up before the market opened on Monday . The stock had previously closed at $24.65, but opened at $26.41. Magic Software Enterprises shares last traded at $26.3590, with a volume of 1,653 shares.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on MGIC. Weiss Ratings reissued a “hold (c)” rating on shares of Magic Software Enterprises in a report on Monday, December 15th. Wall Street Zen upgraded shares of Magic Software Enterprises from a “hold” rating to a “buy” rating in a research note on Saturday. Finally, Zacks Research lowered shares of Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 13th. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Magic Software Enterprises presently has a consensus rating of “Hold” and an average price target of $18.00.

Magic Software Enterprises Stock Down 0.4%

The firm has a 50 day simple moving average of $22.94 and a two-hundred day simple moving average of $20.83. The stock has a market capitalization of $1.29 billion, a P/E ratio of 32.31 and a beta of 0.71. The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 0.11.

Magic Software Enterprises (NASDAQ:MGIC) last posted its quarterly earnings results 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 return on equity of 16.28% and a net margin of 6.61%.The business had revenue of $161.70 million for the quarter, compared to analyst estimates of $154.80 million. On average, equities research analysts expect that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current year.

Magic Software Enterprises Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 30th. Investors of record on Monday, December 15th will be issued 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 dividend yield of 2.3%. Magic Software Enterprises’s payout ratio is 74.07%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. IFP Advisors Inc increased its holdings in Magic Software Enterprises by 38.8% in the 3rd quarter. IFP Advisors Inc now owns 2,775 shares of the software maker’s stock worth $57,000 after purchasing an additional 775 shares in the last quarter. Susquehanna International Group LLP grew its holdings 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 worth $298,000 after purchasing an additional 46,789 shares during the last quarter. Alliancebernstein L.P. acquired a new position in shares of Magic Software Enterprises in the third quarter valued at approximately $2,358,000. Ameriprise Financial Inc. raised its holdings in Magic Software Enterprises by 5.6% in the 3rd quarter. Ameriprise Financial Inc. now owns 14,361 shares of the software maker’s stock valued at $293,000 after buying an additional 768 shares during the last quarter. Finally, Lazard Asset Management LLC boosted its position in Magic Software Enterprises by 8.9% during the 3rd quarter. Lazard Asset Management LLC now owns 23,779 shares of the software maker’s stock worth $485,000 after buying an additional 1,938 shares during the period. 24.70% of the stock is currently owned by institutional investors.

About Magic Software Enterprises

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.