Magic Software Enterprises (NASDAQ:MGIC) Reaches New 52-Week High – Here’s Why

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC) hit a new 52-week high on Friday . The stock traded as high as $27.45 and last traded at $27.39, with a volume of 16976 shares trading hands. The stock had previously closed at $26.89.

Analysts Set New Price Targets

Several brokerages have commented on MGIC. Wall Street Zen upgraded shares of Magic Software Enterprises from a “hold” rating to a “buy” rating in a research report on Saturday, December 20th. Zacks Research downgraded shares of Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Magic Software Enterprises in a research note on Monday, December 29th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Magic Software Enterprises has an average rating of “Hold” and a consensus target price of $18.00.

Magic Software Enterprises Stock Up 1.7%

The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.48 and a current ratio of 1.48. The stock has a market cap of $1.33 billion, a price-to-earnings ratio of 33.78 and a beta of 0.72. The business’s 50 day moving average is $24.63 and its 200 day moving average is $21.77.

Magic Software Enterprises (NASDAQ:MGIC) last released its earnings results on Tuesday, November 18th. The software maker reported $0.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.04). The business had revenue of $161.70 million during the quarter, compared to analysts’ expectations of $154.80 million. Magic Software Enterprises had a net margin of 6.61% and a return on equity of 16.28%. Equities analysts expect that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current year.

Magic Software Enterprises Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th were given a dividend of $0.151 per share. The ex-dividend date was Monday, December 15th. This represents a $0.60 dividend on an annualized basis and a yield of 2.2%. Magic Software Enterprises’s dividend payout ratio (DPR) is presently 74.07%.

Hedge Funds Weigh In On Magic Software Enterprises

Large investors have recently made changes to their positions in the business. Raymond James Financial Inc. acquired a new stake in shares of Magic Software Enterprises during the second quarter worth approximately $33,000. Quent Capital LLC purchased a new stake in Magic Software Enterprises in the 3rd quarter worth approximately $41,000. State of Tennessee Department of Treasury acquired a new stake in shares of Magic Software Enterprises during the 2nd quarter valued at $46,000. CWM LLC boosted its stake in shares of Magic Software Enterprises by 1,045.5% during the 3rd quarter. CWM LLC now owns 2,291 shares of the software maker’s stock valued at $47,000 after buying an additional 2,091 shares during the period. Finally, IFP Advisors Inc grew its holdings in shares of Magic Software Enterprises by 38.8% during the 3rd quarter. IFP Advisors Inc now owns 2,775 shares of the software maker’s stock valued at $57,000 after acquiring an additional 775 shares in the last quarter. Institutional investors and hedge funds own 24.70% of the company’s stock.

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.