Magic Software Enterprises (NASDAQ:MGIC) Trading Down 7.4% – What’s Next?

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC) traded down 7.4% during trading on Thursday . The stock traded as low as $26.37 and last traded at $24.8240. 30,928 shares traded hands during trading, a decline of 44% from the average session volume of 55,148 shares. The stock had previously closed at $26.81.

Analyst Upgrades and Downgrades

MGIC has been the topic of a number of research reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Magic Software Enterprises in a research note on Monday. Zacks Research downgraded shares of Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 13th. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $18.00.

Magic Software Enterprises Price Performance

The firm has a market cap of $1.21 billion, a P/E ratio of 30.43 and a beta of 0.71. The business’s fifty day simple moving average is $22.75 and its 200-day simple moving average is $20.67. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.11.

Magic Software Enterprises (NASDAQ:MGIC) last issued its quarterly earnings data 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 company had revenue of $161.70 million for the quarter, compared to analysts’ expectations of $154.80 million. Magic Software Enterprises had a return on equity of 16.28% and a net margin of 6.61%. As a group, analysts forecast that Magic Software Enterprises Ltd. will post 0.95 EPS for the current fiscal year.

Magic Software Enterprises Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th will be issued a $0.151 dividend. The ex-dividend date of this dividend is Monday, December 15th. This represents a $0.60 annualized dividend and a dividend yield of 2.5%. Magic Software Enterprises’s dividend payout ratio (DPR) is presently 74.07%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Acadian Asset Management LLC increased its holdings in shares of Magic Software Enterprises by 17.3% in the second quarter. Acadian Asset Management LLC now owns 184,925 shares of the software maker’s stock worth $3,525,000 after buying an additional 27,294 shares during the period. Y.D. More Investments Ltd lifted its position in Magic Software Enterprises by 8.6% in the second quarter. Y.D. More Investments Ltd now owns 189,327 shares of the software maker’s stock valued at $3,616,000 after purchasing an additional 14,961 shares during the last quarter. Corton Capital Inc. purchased a new stake in shares of Magic Software Enterprises during the second quarter valued at approximately $286,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Magic Software Enterprises in the second quarter worth approximately $377,000. Finally, Nuveen LLC bought a new stake in Magic Software Enterprises during the 1st quarter valued at $311,000. Institutional investors own 24.70% of the company’s stock.

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.