Magic Software Enterprises (NASDAQ:MGIC) Sees Large Volume Increase After Dividend Announcement

Magic Software Enterprises Ltd. (NASDAQ:MGIC) shares saw strong trading volume on Monday following a dividend announcement from the company. 60,608 shares changed hands during mid-day trading, an increase of 11% from the previous session’s volume of 54,484 shares.The stock last traded at $13.92 and had previously closed at $13.88.

The newly announced dividend which will be paid on Wednesday, May 7th. Shareholders of record on Tuesday, April 22nd will be issued a dividend of $0.327 per share. The ex-dividend date of this dividend is Tuesday, April 22nd. This represents a yield of 4.6%. This is a positive change from Magic Software Enterprises’s previous semi-annual dividend of $0.24. Magic Software Enterprises’s dividend payout ratio is currently 86.67%.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. William Blair lowered Magic Software Enterprises from an “outperform” rating to a “market perform” rating in a report on Wednesday, March 12th. StockNews.com raised Magic Software Enterprises from a “buy” rating to a “strong-buy” rating in a research report on Thursday, March 13th. Finally, Barclays upped their price target on Magic Software Enterprises from $15.00 to $16.00 and gave the stock an “overweight” rating in a research report on Thursday, March 13th.

Magic Software Enterprises Stock Performance

The company has a quick ratio of 1.76, a current ratio of 1.76 and a debt-to-equity ratio of 0.13. The business has a 50-day moving average price of $12.73 and a 200-day moving average price of $11.93. The firm has a market capitalization of $682.48 million, a price-to-earnings ratio of 19.86 and a beta of 1.11.

Magic Software Enterprises (NASDAQ:MGIC) last released its earnings results on Tuesday, March 11th. The software maker reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.01). Magic Software Enterprises had a net margin of 6.49% and a return on equity of 15.42%. The firm had revenue of $142.58 million during the quarter, compared to analyst estimates of $137.00 million. As a group, sell-side analysts forecast that Magic Software Enterprises Ltd. will post 0.95 earnings per share for the current year.

Institutional Investors Weigh In On Magic Software Enterprises

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. IFP Advisors Inc grew its position in Magic Software Enterprises by 100.0% during the 4th quarter. IFP Advisors Inc now owns 4,000 shares of the software maker’s stock worth $48,000 after purchasing an additional 2,000 shares during the period. Barclays PLC grew its position in Magic Software Enterprises by 4,274.4% during the 3rd quarter. Barclays PLC now owns 5,818 shares of the software maker’s stock worth $69,000 after purchasing an additional 5,685 shares during the period. Public Employees Retirement System of Ohio acquired a new stake in Magic Software Enterprises during the 3rd quarter worth about $115,000. Altshuler Shaham Ltd acquired a new stake in Magic Software Enterprises during the 4th quarter worth about $138,000. Finally, Man Group plc acquired a new stake in Magic Software Enterprises during the 4th quarter worth about $145,000. 24.70% of the stock is owned by institutional investors and hedge funds.

About Magic Software Enterprises

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. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services.