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

Magic Software Enterprises (NASDAQ:MGIC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.

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 research analysts have also weighed in on the company. BidaskClub lowered Magic Software Enterprises from a “hold” rating to a “sell” rating in a research note on Wednesday. HC Wainwright set a $10.00 price target on Magic Software Enterprises and gave the stock a “buy” rating in a research note on Wednesday, November 14th. Three equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and one has given a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $9.75.

Shares of NASDAQ:MGIC opened at $7.88 on Wednesday. Magic Software Enterprises has a one year low of $7.75 and a one year high of $9.25. The firm has a market cap of $386.16 million, a price-to-earnings ratio of 14.40 and a beta of 0.80. The company has a debt-to-equity ratio of 0.10, a quick ratio of 3.91 and a current ratio of 3.91.

Magic Software Enterprises (NASDAQ:MGIC) last issued its quarterly earnings results on Tuesday, November 13th. The software maker reported $0.14 earnings per share for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.02). Magic Software Enterprises had a return on equity of 11.02% and a net margin of 6.88%. The business had revenue of $72.14 million for the quarter, compared to analysts’ expectations of $73.35 million. As a group, equities research analysts forecast that Magic Software Enterprises will post 0.57 earnings per share for the current year.

Several institutional investors have recently modified their holdings of the business. Renaissance Technologies LLC raised its position 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 buying an additional 37,100 shares during the period. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Magic Software Enterprises in the 3rd quarter worth $139,000. Virtu Financial LLC purchased a new position in shares of Magic Software Enterprises in the 3rd quarter worth $455,000. Menora Mivtachim Holdings LTD. purchased a new position in shares of Magic Software Enterprises in the 3rd quarter worth $1,037,000. Finally, Bank of New York Mellon Corp raised its position in shares of Magic Software Enterprises by 47.3% in the 3rd quarter. Bank of New York Mellon Corp now owns 88,192 shares of the software maker’s stock worth $750,000 after buying an additional 28,323 shares during the period. 14.73% of the stock is currently owned by institutional investors.

About Magic Software Enterprises

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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