Magic Software Enterprises Ltd. (NASDAQ:MGIC) to Issue $0.20 Semi-Annual Dividend

Magic Software Enterprises Ltd. (NASDAQ:MGIC) declared a Semi-Annual dividend on Thursday, May 16th, Zacks reports. Investors of record on Thursday, June 27th will be paid a dividend of 0.204 per share by the software maker on Saturday, July 13th. The ex-dividend date of this dividend is Thursday, June 27th.

Magic Software Enterprises has increased its dividend by an average of 35.0% annually over the last three years and has raised its dividend annually for the last 1 consecutive years. Magic Software Enterprises has a payout ratio of 63.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Magic Software Enterprises to earn $0.97 per share next year, which means the company should continue to be able to cover its $0.65 annual dividend with an expected future payout ratio of 67.0%.

Magic Software Enterprises Stock Up 1.4 %

NASDAQ:MGIC opened at $11.87 on Friday. The firm has a market capitalization of $582.82 million, a P/E ratio of 15.61 and a beta of 1.12. The company’s fifty day moving average price is $11.78 and its 200-day moving average price is $10.59. Magic Software Enterprises has a 1-year low of $8.15 and a 1-year high of $14.82. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.81 and a quick ratio of 1.76.

Magic Software Enterprises (NASDAQ:MGIC) last issued its earnings results on Wednesday, March 13th. The software maker reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. Magic Software Enterprises had a return on equity of 17.33% and a net margin of 6.92%. The firm had revenue of $125.55 million for the quarter, compared to the consensus estimate of $115.00 million. As a group, equities research analysts anticipate that Magic Software Enterprises will post 0.93 EPS for the current year.

Analyst Ratings Changes

A number of equities analysts have commented on MGIC shares. StockNews.com downgraded shares of Magic Software Enterprises from a “strong-buy” rating to a “buy” rating in a research report on Monday, March 18th. Barclays raised their target price on shares of Magic Software Enterprises from $13.00 to $14.00 and gave the stock an “overweight” rating in a report on Thursday, March 14th.

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. The company's Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services.