Magic Software Enterprises (NASDAQ:MGIC) Sees Strong Trading Volume After Dividend Announcement

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC) saw strong trading volume on Monday after the company announced a dividend. 60,608 shares traded hands during 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. Investors of record on Tuesday, April 22nd will be given a dividend of $0.327 per share. The ex-dividend date of this dividend is Tuesday, April 22nd. This is an increase from Magic Software Enterprises’s previous semi-annual dividend of $0.24. This represents a yield of 4.6%. Magic Software Enterprises’s payout ratio is 86.67%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. StockNews.com upgraded Magic Software Enterprises from a “buy” rating to a “strong-buy” rating in a research report on Thursday, March 13th. William Blair downgraded Magic Software Enterprises from an “outperform” rating to a “market perform” rating in a research report on Wednesday, March 12th. Finally, Barclays lifted their target price on Magic Software Enterprises from $15.00 to $16.00 and gave the stock an “overweight” rating in a report on Thursday, March 13th.

Magic Software Enterprises Stock Down 2.1 %

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 company has a fifty day moving average price of $12.73 and a 200-day moving average price of $11.93. The stock has a market capitalization of $682.48 million, a P/E ratio of 19.86 and a beta of 1.11.

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Truffle Hound Capital LLC bought a new position in shares of Magic Software Enterprises during the fourth quarter valued at approximately $5,173,000. Dimensional Fund Advisors LP grew its stake in shares of Magic Software Enterprises by 4.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 240,841 shares of the software maker’s stock valued at $2,896,000 after buying an additional 9,752 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Magic Software Enterprises during the fourth quarter valued at approximately $1,392,000. JPMorgan Chase & Co. grew its stake in shares of Magic Software Enterprises by 21.1% during the fourth quarter. JPMorgan Chase & Co. now owns 112,782 shares of the software maker’s stock valued at $1,357,000 after buying an additional 19,616 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of Magic Software Enterprises by 4.7% in the fourth quarter. Geode Capital Management LLC now owns 58,105 shares of the software maker’s stock valued at $699,000 after purchasing an additional 2,587 shares during the period. Institutional investors own 24.70% of the company’s stock.

Magic Software Enterprises Company Profile

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.