Magic Software Enterprises (NASDAQ:MGIC) Sees Large Volume Increase – Should You Buy?

Magic Software Enterprises Ltd. (NASDAQ:MGIC) shares saw unusually-strong trading volume on Thursday . Approximately 78,712 shares traded hands during trading, an increase of 107% from the previous session’s volume of 38,094 shares.The stock last traded at $12.33 and had previously closed at $12.62.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on MGIC shares. Barclays boosted their price objective on Magic Software Enterprises from $14.00 to $15.00 and gave the company an “overweight” rating in a report on Tuesday, November 19th. StockNews.com upgraded Magic Software Enterprises from a “buy” rating to a “strong-buy” rating in a report on Sunday, December 22nd.

Magic Software Enterprises Price Performance

The stock’s fifty day moving average price is $11.82 and its 200-day moving average price is $11.26. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.76 and a quick ratio of 1.76. The firm has a market cap of $603.93 million, a PE ratio of 17.57 and a beta of 1.10.

Magic Software Enterprises Increases Dividend

The business also recently announced a semi-annual dividend, which was paid on Wednesday, January 8th. Stockholders of record on Monday, December 23rd were issued a dividend of $0.236 per share. This is a boost from Magic Software Enterprises’s previous semi-annual dividend of $0.20. This represents a dividend yield of 3.7%. The ex-dividend date was Monday, December 23rd. Magic Software Enterprises’s payout ratio is currently 67.14%.

Hedge Funds Weigh In On Magic Software Enterprises

A number of institutional investors have recently added to or reduced their stakes in MGIC. Acadian Asset Management LLC increased its stake in shares of Magic Software Enterprises by 2,254.6% in the 2nd quarter. Acadian Asset Management LLC now owns 68,447 shares of the software maker’s stock worth $653,000 after acquiring an additional 65,540 shares during the last quarter. Dimensional Fund Advisors LP increased its position in Magic Software Enterprises by 14.9% during the second 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 during the last quarter. Inspire Investing LLC purchased a new position in Magic Software Enterprises during the third quarter worth about $880,000. Copeland Capital Management LLC purchased a new stake in shares of Magic Software Enterprises during the 3rd quarter valued at approximately $47,000. Finally, Assenagon Asset Management S.A. purchased a new position in Magic Software Enterprises in the third quarter worth approximately $1,675,000. Hedge funds and other institutional investors own 24.70% of the company’s stock.

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.