Magic Software Enterprises Ltd (NASDAQ:MGIC) Sees Large Increase in Short Interest

Magic Software Enterprises Ltd (NASDAQ:MGIC) was the recipient of a significant increase in short interest during the month of August. As of August 31st, there was short interest totalling 51,600 shares, an increase of 356.6% from the July 31st total of 11,300 shares. Based on an average daily volume of 20,100 shares, the days-to-cover ratio is currently 2.6 days. Currently, 0.2% of the shares of the stock are short sold.

Hedge funds have recently bought and sold shares of the stock. Harel Insurance Investments & Financial Services Ltd. grew its holdings in Magic Software Enterprises by 4.3% during the 2nd quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,854,066 shares of the software maker’s stock valued at $16,631,000 after buying an additional 75,615 shares during the last quarter. Delek Group Ltd. lifted its position in shares of Magic Software Enterprises by 15.4% in the first quarter. Delek Group Ltd. now owns 555,755 shares of the software maker’s stock valued at $4,623,000 after acquiring an additional 73,978 shares in the last quarter. Aptus Capital Advisors LLC purchased a new stake in shares of Magic Software Enterprises in the second quarter valued at $516,000. Sphera Funds Management LTD. acquired a new stake in shares of Magic Software Enterprises during the first quarter valued at $324,000. Finally, Seizert Capital Partners LLC acquired a new stake in shares of Magic Software Enterprises during the first quarter valued at $228,000. 16.07% of the stock is currently owned by hedge funds and other institutional investors.

A number of research firms have commented on MGIC. ValuEngine downgraded Magic Software Enterprises from a “buy” rating to a “hold” rating in a research report on Thursday, July 11th. HC Wainwright reissued a “buy” rating and issued a $10.00 target price on shares of Magic Software Enterprises in a report on Thursday, May 23rd. Zacks Investment Research upgraded Magic Software Enterprises from a “hold” rating to a “buy” rating and set a $10.00 price target for the company in a research report on Saturday, August 17th. Finally, BidaskClub raised Magic Software Enterprises from a “sell” rating to a “hold” rating in a research note on Wednesday, June 26th.

NASDAQ:MGIC traded up $0.12 during mid-day trading on Wednesday, hitting $9.42. 23,959 shares of the company’s stock traded hands, compared to its average volume of 29,474. The company has a debt-to-equity ratio of 0.08, a quick ratio of 3.41 and a current ratio of 3.41. The company has a market cap of $460.55 million, a PE ratio of 17.13 and a beta of 0.93. The firm’s 50 day simple moving average is $9.09 and its 200 day simple moving average is $8.92. Magic Software Enterprises has a 1 year low of $7.29 and a 1 year high of $10.20.

Magic Software Enterprises (NASDAQ:MGIC) last announced its quarterly earnings results on Tuesday, August 13th. The software maker reported $0.14 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.14. The company had revenue of $77.06 million for the quarter, compared to the consensus estimate of $76.55 million. Magic Software Enterprises had a net margin of 6.74% and a return on equity of 10.43%. On average, research analysts expect that Magic Software Enterprises will post 0.59 earnings per share for the current fiscal year.

The business also recently disclosed a Semi-Annual dividend, which will be paid on Thursday, September 12th. Investors of record on Tuesday, August 27th will be given a dividend of $0.156 per share. This is an increase from Magic Software Enterprises’s previous Semi-Annual dividend of $0.09. The ex-dividend date is Monday, August 26th. Magic Software Enterprises’s payout ratio is currently 56.36%.

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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