Magic Software Enterprises (NASDAQ:MGIC) Downgraded by StockNews.com to “Buy”

StockNews.com cut shares of Magic Software Enterprises (NASDAQ:MGIC) from a strong-buy rating to a buy rating in a research note released on Thursday morning.

Separately, Barclays upped their price target on shares of Magic Software Enterprises from $13.00 to $14.00 and gave the company an overweight rating in a report on Thursday, March 14th.

Magic Software Enterprises Stock Up 3.6 %

MGIC stock opened at $10.90 on Thursday. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.69 and a quick ratio of 1.69. Magic Software Enterprises has a 52-week low of $8.15 and a 52-week high of $13.47. The company has a 50-day moving average of $10.84 and a two-hundred day moving average of $10.92. The stock has a market capitalization of $535.19 million, a price-to-earnings ratio of 14.93 and a beta of 1.06.

Magic Software Enterprises (NASDAQ:MGIC) last released its quarterly earnings results on Thursday, May 16th. The software maker reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.02. Magic Software Enterprises had a net margin of 6.83% and a return on equity of 16.36%. The company had revenue of $130.72 million during the quarter, compared to analysts’ expectations of $126.80 million. As a group, equities research analysts anticipate that Magic Software Enterprises will post 0.95 EPS for the current year.

Magic Software Enterprises Cuts Dividend

The business also recently announced a Semi-Annual dividend, which was paid on Thursday, July 11th. Investors of record on Thursday, June 27th were paid a $0.204 dividend. This represents a dividend yield of 3.5%. The ex-dividend date was Thursday, June 27th. Magic Software Enterprises’s payout ratio is presently 56.16%.

Institutional Investors Weigh In On Magic Software Enterprises

Several hedge funds have recently made changes to their positions in the stock. Quadrature Capital Ltd bought a new stake in shares of Magic Software Enterprises in the first quarter valued at about $593,000. CANADA LIFE ASSURANCE Co lifted its stake in Magic Software Enterprises by 722.2% during the first quarter. CANADA LIFE ASSURANCE Co now owns 15,334 shares of the software maker’s stock worth $177,000 after purchasing an additional 13,469 shares during the period. Wellington Management Group LLP lifted its stake in Magic Software Enterprises by 1.6% during the fourth quarter. Wellington Management Group LLP now owns 683,357 shares of the software maker’s stock worth $6,622,000 after purchasing an additional 11,010 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in Magic Software Enterprises by 61.5% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,942 shares of the software maker’s stock worth $58,000 after purchasing an additional 2,263 shares during the period. Finally, Colonial River Wealth Management LLC bought a new position in Magic Software Enterprises during the fourth quarter worth about $127,000. Institutional investors 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. The company's Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services.