ARK Investment Management LLC Reduces Stake in Magic Software Enterprises Ltd. $MGIC

ARK Investment Management LLC lessened its position in Magic Software Enterprises Ltd. (NASDAQ:MGIC) by 18.8% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 124,911 shares of the software maker’s stock after selling 28,957 shares during the quarter. ARK Investment Management LLC’s holdings in Magic Software Enterprises were worth $2,388,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds also recently made changes to their positions in the company. Harel Insurance Investments & Financial Services Ltd. purchased a new position in shares of Magic Software Enterprises in the 1st quarter valued at approximately $35,911,000. Phoenix Financial Ltd. lifted its stake in shares of Magic Software Enterprises by 1.3% in the 1st quarter. Phoenix Financial Ltd. now owns 689,236 shares of the software maker’s stock valued at $8,953,000 after purchasing an additional 9,000 shares during the period. Y.D. More Investments Ltd lifted its stake in shares of Magic Software Enterprises by 22.1% in the 1st quarter. Y.D. More Investments Ltd now owns 174,366 shares of the software maker’s stock valued at $2,240,000 after purchasing an additional 31,527 shares during the period. GHP Investment Advisors Inc. lifted its stake in shares of Magic Software Enterprises by 16.9% in the 1st quarter. GHP Investment Advisors Inc. now owns 56,751 shares of the software maker’s stock valued at $737,000 after purchasing an additional 8,200 shares during the period. Finally, Jane Street Group LLC lifted its stake in shares of Magic Software Enterprises by 126.5% in the 1st quarter. Jane Street Group LLC now owns 32,028 shares of the software maker’s stock valued at $416,000 after purchasing an additional 17,887 shares during the period. Hedge funds and other institutional investors own 24.70% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Wall Street Zen cut Magic Software Enterprises from a “buy” rating to a “hold” rating in a research note on Saturday, August 16th. Barclays lifted their price objective on Magic Software Enterprises from $16.00 to $18.00 and gave the stock an “overweight” rating in a report on Wednesday, August 13th. Finally, Zacks Research lowered Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $18.00.

Magic Software Enterprises Stock Performance

NASDAQ:MGIC opened at $19.69 on Thursday. The stock has a 50-day simple moving average of $20.14 and a two-hundred day simple moving average of $18.07. Magic Software Enterprises Ltd. has a 52-week low of $10.42 and a 52-week high of $22.00. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.61 and a current ratio of 1.61. The firm has a market capitalization of $966.78 million, a PE ratio of 25.24 and a beta of 0.91.

Magic Software Enterprises (NASDAQ:MGIC) last released its quarterly earnings results on Wednesday, August 13th. The software maker reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.02. Magic Software Enterprises had a return on equity of 15.85% and a net margin of 6.58%.The business had revenue of $151.60 million during the quarter, compared to analyst estimates of $143.06 million. Magic Software Enterprises has set its FY 2025 guidance at EPS. Analysts forecast that Magic Software Enterprises Ltd. will post 0.95 EPS for the current year.

Magic Software Enterprises Cuts Dividend

The business also recently declared a semi-annual dividend, which was paid on Wednesday, October 22nd. Shareholders of record on Monday, October 6th were issued a dividend of $0.296 per share. This represents a yield of 288.0%. The ex-dividend date of this dividend was Monday, October 6th. Magic Software Enterprises’s payout ratio is currently 75.64%.

Magic Software Enterprises Company Profile

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.