Magic Software Enterprises (MGIC) Downgraded to “Hold” at BidaskClub

BidaskClub cut shares of Magic Software Enterprises (NASDAQ:MGIC) from a buy rating to a hold rating in a research report sent to investors on Thursday.

A number of other analysts have also commented on MGIC. HC Wainwright set a $10.00 price objective on Magic Software Enterprises and gave the stock a buy rating in a research report on Wednesday, November 14th. Zacks Investment Research lowered Magic Software Enterprises from a hold rating to a sell rating in a research report on Friday, November 16th. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has assigned a buy rating to the company. Magic Software Enterprises presently has an average rating of Hold and a consensus price target of $9.75.

Shares of NASDAQ:MGIC remained flat at $$8.49 during midday trading on Thursday. The stock had a trading volume of 409 shares, compared to its average volume of 32,332. The company has a debt-to-equity ratio of 0.08, a quick ratio of 3.91 and a current ratio of 3.99. The firm has a market capitalization of $415.41 million, a price-to-earnings ratio of 15.44 and a beta of 0.86. Magic Software Enterprises has a 52 week low of $7.29 and a 52 week high of $9.25.

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

The company also recently disclosed a Semi-Annual dividend, which will be paid on Wednesday, March 27th. Investors of record on Thursday, March 14th will be given a $0.15 dividend. This is a positive change from Magic Software Enterprises’s previous Semi-Annual dividend of $0.09. The ex-dividend date is Wednesday, March 13th. Magic Software Enterprises’s dividend payout ratio (DPR) is presently 56.36%.

A number of hedge funds have recently made changes to their positions in MGIC. Acadian Asset Management LLC acquired a new stake in Magic Software Enterprises in the third quarter worth about $136,000. Bank of New York Mellon Corp grew its position in shares of Magic Software Enterprises by 47.3% during the 3rd quarter. Bank of New York Mellon Corp now owns 88,192 shares of the software maker’s stock worth $750,000 after buying an additional 28,323 shares during the period. Menora Mivtachim Holdings LTD. acquired a new position in shares of Magic Software Enterprises during the 3rd quarter worth about $1,037,000. Virtu Financial LLC acquired a new position in shares of Magic Software Enterprises during the 3rd quarter worth about $455,000. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Magic Software Enterprises during the 3rd quarter worth about $139,000. Hedge funds and other institutional investors own 15.79% of the company’s stock.

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.

Further Reading: Growth Stocks

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