Magic Software Enterprises (NASDAQ:MGIC) Hits New 52-Week High – Time to Buy?

Magic Software Enterprises Ltd. (NASDAQ:MGIC) shares hit a new 52-week high during trading on Wednesday . The company traded as high as $15.32 and last traded at $15.20, with a volume of 84202 shares trading hands. The stock had previously closed at $14.43.

Analyst Upgrades and Downgrades

MGIC has been the subject of a number of research analyst reports. Barclays upped their price objective on shares of Magic Software Enterprises from $15.00 to $16.00 and gave the company an “overweight” rating in a research report on Thursday, March 13th. StockNews.com raised shares of Magic Software Enterprises from a “buy” rating to a “strong-buy” rating in a research report on Thursday, March 13th. Finally, William Blair lowered shares of Magic Software Enterprises from an “outperform” rating to a “market perform” rating in a research report on Wednesday, March 12th.

Magic Software Enterprises Price Performance

The company has a quick ratio of 1.76, a current ratio of 1.76 and a debt-to-equity ratio of 0.13. The stock has a market cap of $771.84 million, a price-to-earnings ratio of 22.46 and a beta of 0.99. The company’s 50-day moving average is $13.60 and its 200-day moving average is $12.62.

Magic Software Enterprises (NASDAQ:MGIC) last posted its quarterly earnings results on Tuesday, March 11th. The software maker reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.01). Magic Software Enterprises had a return on equity of 15.42% and a net margin of 6.49%. The business had revenue of $142.58 million during the quarter, compared to analyst estimates of $137.00 million. Equities research analysts expect that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current fiscal year.

Magic Software Enterprises Increases Dividend

The firm also recently declared a semi-annual dividend, which was paid on Wednesday, May 7th. Investors of record on Tuesday, April 22nd were given a $0.327 dividend. This represents a yield of 4.6%. The ex-dividend date was Tuesday, April 22nd. This is a positive change from Magic Software Enterprises’s previous semi-annual dividend of $0.24. Magic Software Enterprises’s dividend payout ratio is 86.67%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Barclays PLC grew its stake in Magic Software Enterprises by 4,274.4% during the third quarter. Barclays PLC now owns 5,818 shares of the software maker’s stock worth $69,000 after buying an additional 5,685 shares during the last quarter. JPMorgan Chase & Co. grew its stake in Magic Software Enterprises by 77.4% during the third quarter. JPMorgan Chase & Co. now owns 93,166 shares of the software maker’s stock worth $1,101,000 after buying an additional 40,642 shares during the last quarter. Truist Financial Corp bought a new stake in Magic Software Enterprises during the fourth quarter worth about $189,000. IFP Advisors Inc grew its stake in Magic Software Enterprises by 100.0% during the fourth quarter. IFP Advisors Inc now owns 4,000 shares of the software maker’s stock worth $48,000 after buying an additional 2,000 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Magic Software Enterprises during the fourth quarter worth about $1,392,000. Institutional investors and hedge funds 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.