Magic Software Enterprises (NASDAQ:MGIC) Stock Price Passes Above 200 Day Moving Average – Here’s Why

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $17.12 and traded as high as $19.64. Magic Software Enterprises shares last traded at $19.49, with a volume of 18,411 shares traded.

Analyst Upgrades and Downgrades

A number of research firms recently commented on MGIC. Zacks Research raised shares of Magic Software Enterprises from a “hold” rating to a “strong-buy” rating in a research report on Friday, August 15th. Wall Street Zen lowered shares of Magic Software Enterprises from a “buy” rating to a “hold” rating in a research report on Saturday, August 16th. Finally, Barclays raised their target price on shares of Magic Software Enterprises from $16.00 to $18.00 and gave the stock an “overweight” rating in a report on Wednesday, August 13th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, Magic Software Enterprises currently has a consensus rating of “Buy” and an average price target of $18.00.

Magic Software Enterprises Trading Down 0.4%

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 stock has a market capitalization of $956.96 million, a P/E ratio of 24.99 and a beta of 0.95. The firm’s fifty day simple moving average is $20.28 and its 200 day simple moving average is $17.12.

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

Magic Software Enterprises Cuts Dividend

The company also recently disclosed a semi-annual dividend, which will be paid on Wednesday, October 22nd. Investors of record on Monday, October 6th will be paid a $0.296 dividend. This represents a yield of 290.0%. The ex-dividend date of this dividend is Monday, October 6th. Magic Software Enterprises’s dividend payout ratio (DPR) is 83.33%.

Hedge Funds Weigh In On Magic Software Enterprises

Several hedge funds and other institutional investors have recently modified their holdings of MGIC. Raymond James Financial Inc. bought a new position in shares of Magic Software Enterprises in the 2nd quarter valued at $33,000. State of Tennessee Department of Treasury bought a new position in Magic Software Enterprises in the second quarter valued at about $46,000. Man Group plc bought a new position in Magic Software Enterprises in the fourth quarter valued at about $145,000. Walleye Capital LLC bought a new stake in shares of Magic Software Enterprises during the first quarter worth $161,000. Finally, Ameriprise Financial Inc. bought a new stake in shares of Magic Software Enterprises during the second quarter worth about $260,000. Institutional investors 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.