Magic Software Enterprises Ltd. (MGIC) to Issue Semi-annual Dividend of $0.33 on May 7th

Magic Software Enterprises Ltd. (NASDAQ:MGIC) declared a semi-annual dividend on Tuesday, March 11th, Wall Street Journal reports. Investors of record on Tuesday, April 22nd will be given a dividend of 0.327 per share by the software maker on Wednesday, May 7th. This represents a yield of 4.6%. The ex-dividend date of this dividend is Tuesday, April 22nd. This is a 38.6% increase from Magic Software Enterprises’s previous semi-annual dividend of $0.24.

Magic Software Enterprises has decreased its dividend payment by an average of 0.3% per year over the last three years. Magic Software Enterprises has a dividend payout ratio of 56.5% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Magic Software Enterprises to earn $0.99 per share next year, which means the company should continue to be able to cover its $0.65 annual dividend with an expected future payout ratio of 65.7%.

Magic Software Enterprises Price Performance

NASDAQ MGIC opened at $13.30 on Friday. The company has a market cap of $653.02 million, a PE ratio of 19.00 and a beta of 1.01. The company has a quick ratio of 1.76, a current ratio of 1.76 and a debt-to-equity ratio of 0.13. The firm’s 50-day simple moving average is $13.00 and its two-hundred day simple moving average is $12.25. Magic Software Enterprises has a 52 week low of $9.51 and a 52 week high of $14.24.

Magic Software Enterprises (NASDAQ:MGIC) last released its quarterly earnings results on Tuesday, March 11th. The software maker reported $0.24 EPS for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.01). The firm had revenue of $142.58 million for the quarter, compared to analysts’ expectations of $137.00 million. Magic Software Enterprises had a net margin of 6.49% and a return on equity of 15.42%. Research analysts predict that Magic Software Enterprises will post 0.95 earnings per share for the current year.

Analyst Ratings Changes

Several research firms have weighed in on MGIC. William Blair cut Magic Software Enterprises from an “outperform” rating to a “market perform” rating in a research report on Wednesday, March 12th. StockNews.com upgraded shares of Magic Software Enterprises from a “buy” rating to a “strong-buy” rating in a research note on Thursday, March 13th. Finally, Barclays lifted their target price on Magic Software Enterprises from $15.00 to $16.00 and gave the stock an “overweight” rating in a report on Thursday, March 13th.

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.