Magic Software Enterprises (NASDAQ:MGIC) Shares Gap Down – Should You Sell?

Magic Software Enterprises Ltd. (NASDAQ:MGIC) shares gapped down before the market opened on Monday . The stock had previously closed at $11.42, but opened at $10.93. Magic Software Enterprises shares last traded at $10.85, with a volume of 10,837 shares traded.

Analyst Upgrades and Downgrades

MGIC has been the topic of several analyst reports. StockNews.com raised Magic Software Enterprises from a “buy” rating to a “strong-buy” rating in a report on Wednesday. Barclays raised their target price on Magic Software Enterprises from $14.00 to $15.00 and gave the company an “overweight” rating in a research report on Tuesday.

Magic Software Enterprises Price Performance

The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $538.14 million, a PE ratio of 16.12 and a beta of 1.08. The stock has a 50-day moving average price of $11.29 and a 200 day moving average price of $10.97.

Magic Software Enterprises Increases Dividend

The business also recently declared a semi-annual dividend, which will be paid on Wednesday, January 8th. Investors of record on Monday, December 23rd will be issued a $0.236 dividend. This represents a yield of 3.7%. The ex-dividend date is Monday, December 23rd. This is a positive change from Magic Software Enterprises’s previous semi-annual dividend of $0.20. Magic Software Enterprises’s payout ratio is presently 60.29%.

Hedge Funds Weigh In On Magic Software Enterprises

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MGIC. Copeland Capital Management LLC purchased a new stake in Magic Software Enterprises during the 3rd quarter worth approximately $47,000. Barclays PLC raised its stake in Magic Software Enterprises by 4,274.4% in the 3rd quarter. Barclays PLC now owns 5,818 shares of the software maker’s stock valued at $69,000 after purchasing an additional 5,685 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new stake in shares of Magic Software Enterprises in the third quarter valued at about $115,000. CANADA LIFE ASSURANCE Co raised its holdings in Magic Software Enterprises by 722.2% in the 1st quarter. CANADA LIFE ASSURANCE Co now owns 15,334 shares of the software maker’s stock valued at $177,000 after acquiring an additional 13,469 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in Magic Software Enterprises by 14.9% in the 2nd quarter. Dimensional Fund Advisors LP now owns 228,551 shares of the software maker’s stock worth $2,201,000 after purchasing an additional 29,635 shares in the last quarter. 24.70% of the stock is owned by hedge funds and other institutional investors.

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.