Zacks Investment Research upgraded shares of Magic Software Enterprises (NASDAQ:MGIC) from a hold rating to a buy rating in a report released on Tuesday. The firm currently has $9.50 price target on the software maker’s stock.

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) “

MGIC has been the topic of several other reports. ValuEngine cut shares of Magic Software Enterprises from a buy rating to a hold rating in a research report on Monday, May 7th. BidaskClub cut shares of Magic Software Enterprises from a hold rating to a sell rating in a research report on Tuesday, May 8th. HC Wainwright set a $10.00 price objective on shares of Magic Software Enterprises and gave the stock a buy rating in a research report on Thursday, August 9th. Finally, Bank of America cut shares of Magic Software Enterprises from a neutral rating to an underperform rating in a research report on Wednesday, June 13th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company. The stock presently has an average rating of Hold and an average price target of $10.00.

Shares of MGIC stock traded up $0.05 during trading on Tuesday, hitting $8.75. The company had a trading volume of 13,552 shares, compared to its average volume of 27,070. The company has a current ratio of 3.12, a quick ratio of 3.12 and a debt-to-equity ratio of 0.12. The stock has a market cap of $412.00 million, a price-to-earnings ratio of 19.02 and a beta of 0.66. Magic Software Enterprises has a 52 week low of $7.60 and a 52 week high of $9.50.

Magic Software Enterprises (NASDAQ:MGIC) last posted its quarterly earnings data on Wednesday, August 8th. The software maker reported $0.16 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.15 by $0.01. The company had revenue of $70.22 million for the quarter, compared to analysts’ expectations of $72.45 million. Magic Software Enterprises had a net margin of 6.59% and a return on equity of 10.92%. sell-side analysts forecast that Magic Software Enterprises will post 0.6 EPS for the current fiscal year.

The firm also recently declared a Semi-Annual dividend, which will be paid on Wednesday, September 5th. Shareholders of record on Wednesday, August 22nd will be given a dividend of $0.155 per share. This is a boost from Magic Software Enterprises’s previous Semi-Annual dividend of $0.09. The ex-dividend date of this dividend is Tuesday, August 21st. Magic Software Enterprises’s dividend payout ratio (DPR) is presently 56.52%.

A number of hedge funds and other institutional investors have recently modified their holdings of MGIC. Segall Bryant & Hamill LLC bought a new position in Magic Software Enterprises during the second quarter valued at approximately $2,288,000. Delek Group Ltd. grew its position in Magic Software Enterprises by 105.1% during the second quarter. Delek Group Ltd. now owns 366,684 shares of the software maker’s stock valued at $3,043,000 after acquiring an additional 187,943 shares during the last quarter. Unterberg Capital LLC grew its position in Magic Software Enterprises by 354.5% during the first quarter. Unterberg Capital LLC now owns 170,876 shares of the software maker’s stock valued at $1,452,000 after acquiring an additional 133,276 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. grew its position in Magic Software Enterprises by 6.7% during the second quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,281,421 shares of the software maker’s stock valued at $10,636,000 after acquiring an additional 80,117 shares during the last quarter. Finally, Renaissance Technologies LLC grew its position in Magic Software Enterprises by 9.3% during the fourth quarter. Renaissance Technologies LLC now owns 428,651 shares of the software maker’s stock valued at $3,591,000 after acquiring an additional 36,599 shares during the last quarter. Institutional investors and hedge funds own 9.87% 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.

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