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

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC) 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 changing hands.

Analyst Ratings Changes

Several equities research analysts have issued reports on MGIC shares. Weiss Ratings reissued a “hold (c)” rating on shares of Magic Software Enterprises in a research note on Monday, December 15th. Wall Street Zen upgraded Magic Software Enterprises from a “hold” rating to a “buy” rating in a report on Saturday. Finally, Zacks Research lowered shares of Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, Magic Software Enterprises has an average rating of “Hold” and an average price target of $18.00.

Magic Software Enterprises Stock Performance

The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 0.11. The firm has a 50-day moving average price of $22.94 and a 200 day moving average price of $20.80. The firm has a market capitalization of $1.29 billion, a PE ratio of 32.46 and a beta of 0.71.

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

Magic Software Enterprises Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 30th. Investors of record on Monday, December 15th will be issued a $0.151 dividend. The ex-dividend date is Monday, December 15th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.3%. Magic Software Enterprises’s payout ratio is 74.07%.

Hedge Funds Weigh In On Magic Software Enterprises

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Acadian Asset Management LLC raised its stake 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 valued at $3,525,000 after acquiring an additional 27,294 shares in the last quarter. Y.D. More Investments Ltd increased its holdings in Magic Software Enterprises by 8.6% during the 2nd quarter. Y.D. More Investments Ltd now owns 189,327 shares of the software maker’s stock worth $3,616,000 after purchasing an additional 14,961 shares during the period. Corton Capital Inc. acquired a new stake in Magic Software Enterprises in the 2nd quarter valued at about $286,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Magic Software Enterprises in the 2nd quarter valued at about $377,000. Finally, Nuveen LLC acquired a new position in shares of Magic Software Enterprises during the first quarter worth about $311,000. Hedge funds and other 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.