Magic Software Enterprises Ltd. (NASDAQ:MGIC) Announces Semi-annual Dividend of $0.33

Magic Software Enterprises Ltd. (NASDAQ:MGIC) announced a semi-annual dividend on Monday, March 17th, Wall Street Journal reports. Stockholders of record on Tuesday, April 22nd will be paid a dividend of 0.327 per share by the software maker on Wednesday, May 7th. This represents a dividend yield of 4.6%. The ex-dividend date is Tuesday, April 22nd. This is a 38.6% increase from Magic Software Enterprises’s previous semi-annual dividend of $0.24.

Magic Software Enterprises has decreased its dividend by an average of 0.3% per year over the last three years. Magic Software Enterprises has a dividend payout ratio of 56.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Magic Software Enterprises to earn $0.99 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 65.7%.

Magic Software Enterprises Stock Performance

Shares of MGIC stock opened at $14.20 on Tuesday. The business’s 50-day moving average price is $12.69 and its 200-day moving average price is $11.91. Magic Software Enterprises has a 12 month low of $9.51 and a 12 month high of $14.24. The firm has a market capitalization of $697.21 million, a price-to-earnings ratio of 20.29 and a beta of 1.11. The company has a current ratio of 1.76, a quick ratio of 1.76 and a debt-to-equity ratio of 0.13.

Magic Software Enterprises (NASDAQ:MGIC) last announced its quarterly earnings results on Tuesday, March 11th. The software maker reported $0.24 EPS for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.01). Magic Software Enterprises had a net margin of 6.49% and a return on equity of 15.42%. The firm had revenue of $142.58 million for the quarter, compared to analyst estimates of $137.00 million. Equities research analysts forecast that Magic Software Enterprises will post 0.95 EPS for the current year.

Wall Street Analysts Forecast Growth

MGIC has been the topic of a number of recent analyst reports. William Blair lowered Magic Software Enterprises from an “outperform” rating to a “market perform” rating in a research note on Wednesday, March 12th. Barclays lifted their price objective on Magic Software Enterprises from $15.00 to $16.00 and gave the stock an “overweight” rating in a research note on Thursday, March 13th. Finally, StockNews.com raised Magic Software Enterprises from a “buy” rating to a “strong-buy” rating in a research note on Thursday, March 13th.

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