Zacks Investment Research Lowers Magic Software Enterprises (MGIC) to Sell

Zacks Investment Research lowered shares of Magic Software Enterprises (NASDAQ:MGIC) from a hold rating to a sell rating in a research report released on Wednesday 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) “

A number of other brokerages have also recently issued reports on MGIC. BidaskClub raised Magic Software Enterprises from a strong sell rating to a sell rating in a research report on Thursday, August 23rd. HC Wainwright set a $10.00 target price on Magic Software Enterprises and gave the company a buy rating in a research report on Thursday, August 9th. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and one has assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average price target of $9.75.

MGIC opened at $8.09 on Wednesday. Magic Software Enterprises has a one year low of $7.75 and a one year high of $9.25. The stock has a market capitalization of $403.71 million, a PE ratio of 15.06 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 (NASDAQ:MGIC) last announced its earnings results on Tuesday, November 13th. The software maker reported $0.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.02). The firm had revenue of $72.14 million during the quarter, compared to analyst estimates of $73.35 million. Magic Software Enterprises had a net margin of 6.88% and a return on equity of 11.02%. On average, research analysts expect that Magic Software Enterprises will post 0.57 earnings per share for the current year.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Acadian Asset Management LLC acquired a new stake in shares of Magic Software Enterprises in the 3rd quarter valued at about $136,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Magic Software Enterprises in the 3rd quarter valued at about $139,000. Jane Street Group LLC acquired a new stake in shares of Magic Software Enterprises in the 2nd quarter valued at about $259,000. Virtu Financial LLC acquired a new stake in shares of Magic Software Enterprises in the 3rd quarter valued at about $455,000. Finally, Ramsey Quantitative Systems boosted its position in shares of Magic Software Enterprises by 54.4% in the 3rd quarter. Ramsey Quantitative Systems now owns 60,989 shares of the software maker’s stock valued at $518,000 after purchasing an additional 21,479 shares during the period. 13.48% of the stock is owned by hedge funds and other institutional investors.

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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