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

Magic Software Enterprises Ltd. (NASDAQ:MGIC) shares hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $26.00 and last traded at $25.6110, with a volume of 17574 shares changing hands. The stock had previously closed at $25.15.

Analyst Ratings Changes

Several brokerages have recently commented on MGIC. Wall Street Zen downgraded shares of Magic Software Enterprises from a “buy” rating to a “hold” rating in a research report on Saturday, August 16th. Zacks Research lowered shares of Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 13th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Magic Software Enterprises in a research note on Monday, November 24th. Finally, Barclays upped their price objective on shares of Magic Software Enterprises from $16.00 to $18.00 and gave the company an “overweight” rating in a report on Wednesday, August 13th. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Magic Software Enterprises currently has an average rating of “Hold” and a consensus target price of $18.00.

Magic Software Enterprises Stock Performance

The company has a debt-to-equity ratio of 0.11, a current ratio of 1.48 and a quick ratio of 1.48. The company’s fifty day moving average price is $21.78 and its 200 day moving average price is $20.10. The company has a market cap of $1.26 billion, a PE ratio of 31.60 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 EPS 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 for the quarter, compared to the consensus estimate of $154.80 million. On average, equities research analysts predict 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 will be paid on Tuesday, December 30th. Investors of record on Monday, December 15th will be paid a $0.151 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Monday, December 15th. Magic Software Enterprises’s payout ratio is currently 72.84%.

Hedge Funds Weigh In On Magic Software Enterprises

A number of large investors have recently modified their holdings of MGIC. IFP Advisors Inc raised its position in shares of Magic Software Enterprises by 38.8% in the third quarter. IFP Advisors Inc now owns 2,775 shares of the software maker’s stock worth $57,000 after buying an additional 775 shares in the last quarter. Susquehanna International Group LLP raised its holdings in shares of Magic Software Enterprises by 145.3% in the 3rd quarter. Susquehanna International Group LLP now owns 14,589 shares of the software maker’s stock valued at $298,000 after acquiring an additional 46,789 shares in the last quarter. Alliancebernstein L.P. purchased a new stake in shares of Magic Software Enterprises in the 3rd quarter valued at about $2,358,000. Ameriprise Financial Inc. boosted its position in shares of Magic Software Enterprises by 5.6% during the 3rd quarter. Ameriprise Financial Inc. now owns 14,361 shares of the software maker’s stock valued at $293,000 after acquiring an additional 768 shares during the last quarter. Finally, Lazard Asset Management LLC grew its holdings in shares of Magic Software Enterprises by 8.9% during the third quarter. Lazard Asset Management LLC now owns 23,779 shares of the software maker’s stock worth $485,000 after purchasing an additional 1,938 shares in the last quarter. 24.70% of the stock is currently owned by institutional investors.

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.