Magic Software Enterprises (NASDAQ:MGIC) Shares Gap Up – Still a Buy?

24 Dec 2025, 15:00 by Amy Steele · The Cerbat Gem

Magic Software Enterprises Ltd. (NASDAQ:MGIC – Get Free Report) shares gapped up before the market opened on Monday . The stock had previously closed at $24.65, but opened at $26.41. Magic Software Enterprises shares last traded at $26.3590, with a volume of 1,653 shares.

Analysts Set New Price Targets

MGIC has been the topic of several analyst reports. Zacks Research cut shares of Magic Software Enterprises from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. Wall Street Zen raised Magic Software Enterprises from a “hold” rating to a “buy” rating in a report on Saturday. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Magic Software Enterprises in a report on Monday. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $18.00.

Get Our Latest Analysis on Magic Software Enterprises

Magic Software Enterprises Trading Up 1.8%

The firm has a 50 day simple moving average of $23.15 and a 200 day simple moving average of $20.97. The firm has a market cap of $1.32 billion, a P/E ratio of 33.31 and a beta of 0.71. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.48 and a current ratio of 1.48.

Magic Software Enterprises (NASDAQ:MGIC – Get Free Report) last released its quarterly earnings data on Tuesday, November 18th. The software maker reported $0.25 EPS for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.04). Magic Software Enterprises had a net margin of 6.61% and a return on equity of 16.28%. The firm had revenue of $161.70 million during the quarter, compared to the consensus estimate of $154.80 million. On average, equities research analysts predict that Magic Software Enterprises Ltd. will post 0.95 EPS for the current fiscal year.

Magic Software Enterprises Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th will be paid a $0.151 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date is Monday, December 15th. Magic Software Enterprises’s dividend payout ratio is currently 74.07%.

Institutional Investors Weigh In On Magic Software Enterprises

Hedge funds have recently bought and sold shares of the stock. Raymond James Financial Inc. purchased a new stake in shares of Magic Software Enterprises during the 2nd quarter valued at $33,000. Quent Capital LLC purchased a new position in shares of Magic Software Enterprises during the 3rd quarter valued at about $41,000. State of Tennessee Department of Treasury purchased a new stake in shares of Magic Software Enterprises in the 2nd quarter valued at $46,000. CWM LLC grew its holdings in shares of Magic Software Enterprises by 1,045.5% during the 3rd quarter. CWM LLC now owns 2,291 shares of the software maker’s stock valued at $47,000 after purchasing an additional 2,091 shares during the last quarter. Finally, IFP Advisors Inc raised its position in Magic Software Enterprises by 38.8% in the 3rd quarter. IFP Advisors Inc now owns 2,775 shares of the software maker’s stock worth $57,000 after purchasing an additional 775 shares during the period. 24.70% of the stock is currently owned by institutional investors.

About Magic Software Enterprises

(Get Free Report)

Magic Software Enterprises Ltd. is a global provider of enterprise software solutions that enable organizations to develop, integrate and manage business applications across cloud and on-premises environments. Serving clients in industries such as financial services, healthcare, manufacturing and distribution, the company’s platforms are designed to accelerate digital transformation by streamlining the creation of web, desktop and mobile applications while ensuring seamless data flow between disparate systems.