Short Interest in Magic Software Enterprises Ltd. (NASDAQ:MGIC) Rises By 25.2%

Magic Software Enterprises Ltd. (NASDAQ:MGIC) was the recipient of a large growth in short interest in June. As of June 15th, there was short interest totalling 35,300 shares, a growth of 25.2% from the May 31st total of 28,200 shares. Approximately 0.1% of the company’s stock are short sold. Based on an average daily volume of 56,000 shares, the days-to-cover ratio is currently 0.6 days.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Colonial River Wealth Management LLC purchased a new stake in shares of Magic Software Enterprises during the 4th quarter worth about $127,000. Wellington Management Group LLP raised its holdings in Magic Software Enterprises by 1.6% in the 4th quarter. Wellington Management Group LLP now owns 683,357 shares of the software maker’s stock worth $6,622,000 after purchasing an additional 11,010 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in Magic Software Enterprises by 61.5% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,942 shares of the software maker’s stock worth $58,000 after purchasing an additional 2,263 shares during the period. CANADA LIFE ASSURANCE Co boosted its position in Magic Software Enterprises by 722.2% during the first quarter. CANADA LIFE ASSURANCE Co now owns 15,334 shares of the software maker’s stock worth $177,000 after purchasing an additional 13,469 shares in the last quarter. Finally, Quadrature Capital Ltd acquired a new stake in Magic Software Enterprises in the first quarter valued at approximately $593,000. 24.70% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

MGIC has been the topic of a number of research analyst reports. StockNews.com raised shares of Magic Software Enterprises from a “buy” rating to a “strong-buy” rating in a report on Monday, May 20th. Barclays boosted their price target on Magic Software Enterprises from $13.00 to $14.00 and gave the company an “overweight” rating in a research note on Thursday, March 14th.

Magic Software Enterprises Stock Performance

NASDAQ MGIC remained flat at $9.63 on Friday. 46,737 shares of the company’s stock traded hands, compared to its average volume of 43,042. The stock’s fifty day moving average price is $11.08 and its 200-day moving average price is $10.89. The firm has a market cap of $472.83 million, a price-to-earnings ratio of 13.19 and a beta of 1.07. The company has a quick ratio of 1.69, a current ratio of 1.69 and a debt-to-equity ratio of 0.14. Magic Software Enterprises has a twelve month low of $8.15 and a twelve month high of $13.62.

Magic Software Enterprises (NASDAQ:MGIC) last posted its earnings results on Thursday, May 16th. The software maker reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.02. The company had revenue of $130.72 million during the quarter, compared to the consensus estimate of $126.80 million. Magic Software Enterprises had a net margin of 6.83% and a return on equity of 16.36%. On average, research analysts anticipate that Magic Software Enterprises will post 0.95 earnings per share for the current fiscal year.

Magic Software Enterprises Cuts Dividend

The business also recently announced a Semi-Annual dividend, which will be paid on Thursday, July 11th. Stockholders of record on Thursday, June 27th will be paid a $0.204 dividend. The ex-dividend date is Thursday, June 27th. This represents a dividend yield of 3.5%. Magic Software Enterprises’s payout ratio is 56.16%.

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