Magic Software Enterprises (MGIC) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Magic Software Enterprises (NASDAQ:MGIC) from a hold rating to a sell rating in a report published on Friday, Zacks.com reports.

According to Zacks, “Magic Software Enterprises, a member of the Formula Group, develops, markets and supports software development and deployment technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems. Magic technology, applications and professional services are available through a global network of subsidiaries, distributors and Magic solutions partners. (PRESS RELEASE) “

Several other brokerages also recently commented on MGIC. BidaskClub raised Magic Software Enterprises from a hold rating to a buy rating in a research note on Friday, March 1st. HC Wainwright set a $10.00 price objective on Magic Software Enterprises and gave the stock a buy rating in a research note on Tuesday, March 5th. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating and two have issued a buy rating to the stock. Magic Software Enterprises currently has a consensus rating of Hold and an average target price of $9.75.

Shares of Magic Software Enterprises stock opened at $9.28 on Friday. The company has a market capitalization of $452.67 million, a PE ratio of 16.87 and a beta of 0.85. Magic Software Enterprises has a 52 week low of $7.29 and a 52 week high of $9.44. The company has a debt-to-equity ratio of 0.08, a current ratio of 3.99 and a quick ratio of 3.91.

Magic Software Enterprises (NASDAQ:MGIC) last issued its quarterly earnings data on Monday, March 4th. The software maker reported $0.12 EPS for the quarter, missing the consensus estimate of $0.14 by ($0.02). The company had revenue of $72.29 million during the quarter, compared to analysts’ expectations of $73.75 million. Magic Software Enterprises had a return on equity of 11.06% and a net margin of 6.99%. On average, equities research analysts predict that Magic Software Enterprises will post 0.6 earnings per share for the current fiscal year.

The business also recently disclosed a Semi-Annual dividend, which was paid on Wednesday, March 27th. Stockholders of record on Thursday, March 14th were paid a $0.15 dividend. The ex-dividend date of this dividend was Wednesday, March 13th. This is an increase from Magic Software Enterprises’s previous Semi-Annual dividend of $0.09. Magic Software Enterprises’s dividend payout ratio is 54.55%.

Institutional investors have recently modified their holdings of the company. Van ECK Associates Corp raised its stake in shares of Magic Software Enterprises by 20.2% in the fourth quarter. Van ECK Associates Corp now owns 9,359 shares of the software maker’s stock worth $71,000 after purchasing an additional 1,571 shares during the last quarter. Advisors Asset Management Inc. purchased a new stake in shares of Magic Software Enterprises during the fourth quarter valued at approximately $124,000. Connor Clark & Lunn Investment Management Ltd. increased its position in shares of Magic Software Enterprises by 22.8% during the fourth quarter. Connor Clark & Lunn Investment Management Ltd. now owns 20,024 shares of the software maker’s stock valued at $153,000 after acquiring an additional 3,715 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Magic Software Enterprises by 8.0% during the fourth quarter. Dimensional Fund Advisors LP now owns 36,557 shares of the software maker’s stock valued at $279,000 after acquiring an additional 2,700 shares during the last quarter. Finally, ETF Managers Group LLC increased its position in shares of Magic Software Enterprises by 18.2% during the fourth quarter. ETF Managers Group LLC now owns 38,333 shares of the software maker’s stock valued at $295,000 after acquiring an additional 5,890 shares during the last quarter. 15.74% of the stock is owned by hedge funds and other institutional investors.

Magic Software Enterprises Company Profile

Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and IT outsourcing software services in Israel and internationally. The company's Software Services segment develops, markets, sells, and supports a proprietary and none proprietary application platform, software applications, and business and process integration solutions and related services.

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