Magic Software Enterprises (NASDAQ:MGIC) Sets New 1-Year High – What’s Next?

Magic Software Enterprises Ltd. (NASDAQ:MGIC) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $22.66 and last traded at $22.23, with a volume of 11283 shares. The stock had previously closed at $21.95.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on MGIC. Wall Street Zen downgraded Magic Software Enterprises from a “buy” rating to a “hold” rating in a report on Saturday, August 16th. Zacks Research lowered shares of Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. Finally, Barclays boosted their target price on shares of Magic Software Enterprises from $16.00 to $18.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 13th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $18.00.

Magic Software Enterprises Stock Performance

The firm has a market capitalization of $1.10 billion, a price-to-earnings ratio of 28.65 and a beta of 0.90. The firm’s fifty day moving average is $20.32 and its 200 day moving average is $18.84. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.61 and a quick ratio of 1.61.

Magic Software Enterprises (NASDAQ:MGIC) last issued its quarterly earnings data on Wednesday, August 13th. The software maker reported $0.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.02. The firm had revenue of $151.60 million during the quarter, compared to analysts’ expectations of $143.06 million. Magic Software Enterprises had a net margin of 6.58% and a return on equity of 15.85%. Magic Software Enterprises has set its FY 2025 guidance at EPS. On average, analysts predict that Magic Software Enterprises Ltd. will post 0.95 EPS for the current fiscal 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 given a $0.296 dividend. This represents a yield of 288.0%. The ex-dividend date was Monday, October 6th. Magic Software Enterprises’s dividend payout ratio is 75.64%.

Hedge Funds Weigh In On Magic Software Enterprises

Several hedge funds have recently added to or reduced their stakes in MGIC. Corton Capital Inc. acquired a new position in Magic Software Enterprises in the 2nd quarter worth $286,000. Menora Mivtachim Holdings LTD. acquired a new stake in Magic Software Enterprises in the first quarter valued at approximately $273,000. Y.D. More Investments Ltd raised its stake in shares of Magic Software Enterprises by 22.1% during the first quarter. Y.D. More Investments Ltd now owns 174,366 shares of the software maker’s stock valued at $2,240,000 after acquiring an additional 31,527 shares during the last quarter. Nuveen LLC acquired a new position in Magic Software Enterprises in the first quarter valued at $311,000. Finally, Ashton Thomas Private Wealth LLC bought a new position in Magic Software Enterprises in the second quarter worth approximately $298,000. Institutional investors and hedge funds own 24.70% of the company’s stock.

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.