Magic Software Enterprises (NASDAQ:MGIC) Shares Gap Down – Here’s What Happened

Magic Software Enterprises Ltd. (NASDAQ:MGIC)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $26.81, but opened at $25.12. Magic Software Enterprises shares last traded at $25.37, with a volume of 6,753 shares trading hands.

Wall Street Analysts Forecast Growth

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

Magic Software Enterprises Trading Up 5.8%

The stock has a market capitalization of $1.28 billion, a PE ratio of 32.19 and a beta of 0.71. The stock’s 50 day moving average price is $22.82 and its 200-day moving average price is $20.70. The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 0.11.

Magic Software Enterprises (NASDAQ:MGIC) last issued its earnings results on Tuesday, November 18th. The software maker reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.29 by ($0.04). Magic Software Enterprises had a return on equity of 16.28% and a net margin of 6.61%.The firm had revenue of $161.70 million during the quarter, compared to the consensus estimate of $154.80 million. On average, sell-side analysts expect that Magic Software Enterprises Ltd. will post 0.95 earnings per share 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 paid a $0.151 dividend. This represents a $0.60 annualized dividend and a yield of 2.3%. The ex-dividend date is Monday, December 15th. Magic Software Enterprises’s dividend payout ratio is presently 74.07%.

Hedge Funds Weigh In On Magic Software Enterprises

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Raymond James Financial Inc. purchased a new position in Magic Software Enterprises during the second quarter valued at $33,000. Quent Capital LLC purchased a new position in shares of Magic Software Enterprises during the third quarter valued at about $41,000. State of Tennessee Department of Treasury bought a new stake in shares of Magic Software Enterprises in the second quarter worth about $46,000. CWM LLC lifted its position in shares of Magic Software Enterprises by 1,045.5% in the third quarter. CWM LLC now owns 2,291 shares of the software maker’s stock worth $47,000 after buying an additional 2,091 shares in the last quarter. Finally, IFP Advisors Inc boosted its stake in Magic Software Enterprises by 38.8% during the third quarter. IFP Advisors Inc now owns 2,775 shares of the software maker’s stock valued at $57,000 after buying an additional 775 shares during the last quarter. Institutional investors 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.