Magic Software Enterprises (NASDAQ:MGIC) Shares Gap Up – Should You Buy?

Magic Software Enterprises Ltd. (NASDAQ:MGIC) shares gapped up before the market opened on Wednesday . The stock had previously closed at $22.36, but opened at $24.22. Magic Software Enterprises shares last traded at $24.1850, with a volume of 24,856 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on MGIC shares. Wall Street Zen cut shares of Magic Software Enterprises from a “buy” rating to a “hold” rating in a report on Saturday, August 16th. Barclays increased their price target on Magic Software Enterprises from $16.00 to $18.00 and gave the company an “overweight” rating in a report on Wednesday, August 13th. Zacks Research lowered Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. Finally, Weiss Ratings initiated coverage on Magic Software Enterprises in a research report on Monday. They set a “hold (c)” rating for the company. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $18.00.

Magic Software Enterprises Trading Up 0.4%

The stock has a 50 day moving average of $20.69 and a 200-day moving average of $19.10. The company has a market capitalization of $1.18 billion, a P/E ratio of 30.76 and a beta of 0.90. The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt-to-equity ratio of 0.14.

Magic Software Enterprises (NASDAQ:MGIC) last issued its quarterly earnings results on Wednesday, August 13th. The software maker reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.02. The business had revenue of $151.60 million for the quarter, compared to the consensus estimate of $143.06 million. Magic Software Enterprises had a net margin of 6.58% and a return on equity of 15.85%. On average, research analysts predict that Magic Software Enterprises Ltd. will post 0.95 EPS for the current year.

Institutional Investors Weigh In On Magic Software Enterprises

A number of institutional investors have recently bought and sold shares of the business. Raymond James Financial Inc. bought a new position in shares of Magic Software Enterprises in the second quarter worth about $33,000. Quent Capital LLC purchased a new position in Magic Software Enterprises in the 3rd quarter worth approximately $41,000. State of Tennessee Department of Treasury purchased a new position in Magic Software Enterprises in the 2nd quarter worth approximately $46,000. CWM LLC boosted its stake in Magic Software Enterprises by 1,045.5% in the 3rd quarter. CWM LLC now owns 2,291 shares of the software maker’s stock worth $47,000 after purchasing an additional 2,091 shares during the period. Finally, BNP Paribas Financial Markets purchased a new stake in Magic Software Enterprises during the 3rd quarter valued at approximately $62,000. Hedge funds and other 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.