Magic Software Enterprises (MGIC) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of Magic Software Enterprises (NASDAQ:MGIC) from a hold rating to a sell rating in a report released on Thursday morning.

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 a number of other research reports. 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 Wednesday, November 14th. BidaskClub raised shares of Magic Software Enterprises from a sell rating to a hold rating in a research report on Saturday, November 3rd. Two investment analysts have rated the stock with a sell rating, two have issued a hold rating and one has assigned a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus price target of $9.75.

MGIC stock opened at $8.13 on Thursday. The stock has a market cap of $396.39 million, a PE ratio of 17.67 and a beta of 0.82. The company has a current ratio of 3.91, a quick ratio of 3.91 and a debt-to-equity ratio of 0.10. Magic Software Enterprises has a 1 year low of $7.75 and a 1 year high of $9.25.

Magic Software Enterprises (NASDAQ:MGIC) last released its quarterly earnings data on Tuesday, November 13th. The software maker reported $0.14 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.16 by ($0.02). The company had revenue of $72.14 million for the quarter, compared to the consensus estimate of $73.35 million. Magic Software Enterprises had a return on equity of 11.02% and a net margin of 6.88%. As a group, sell-side analysts expect that Magic Software Enterprises will post 0.57 EPS for the current fiscal year.

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Morgan Stanley raised its holdings in shares of Magic Software Enterprises by 264.5% in the 3rd quarter. Morgan Stanley now owns 18,165 shares of the software maker’s stock worth $154,000 after acquiring an additional 13,181 shares during the last quarter. Renaissance Technologies LLC raised its holdings in shares of Magic Software Enterprises by 9.4% in the 3rd quarter. Renaissance Technologies LLC now owns 432,052 shares of the software maker’s stock worth $3,672,000 after acquiring an additional 37,100 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Magic Software Enterprises in the 3rd quarter worth about $139,000. Virtu Financial LLC acquired a new stake in shares of Magic Software Enterprises in the 3rd quarter worth about $455,000. Finally, Menora Mivtachim Holdings LTD. acquired a new stake in shares of Magic Software Enterprises in the 3rd quarter worth about $1,037,000. Institutional investors own 13.48% 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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