Magic Software Enterprises Ltd (MGIC) Shares Rise Despite Market Challenges

Magic Software Enterprises Ltd (NASDAQ: MGIC) has experienced a rise in its stock price by 1.82% compared to its previous closing price of $20.33. However, the company has seen a gain of 14.36% in its stock price over the last five trading days. seekingalpha.com reported 2025-05-21 that Magic Software Enterprises Ltd. (NASDAQ:MGIC ) Q1 2025 Earnings Conference Call May 21, 2025 10:00 AM ET Company Participants Asaf Berenstin – Chief Financial Officer Guy Bernstein – Chief Executive Officer Conference Call Participants Chris Reimer – Barclays Bank Operator Ladies and gentlemen, thank you for standing by.

Is It Worth Investing in Magic Software Enterprises Ltd (NASDAQ: MGIC) Right Now?

Magic Software Enterprises Ltd (NASDAQ: MGIC) has a price-to-earnings ratio that is above its average at 27.06x. The stock has a 36-month beta value of 1.04. Opinions on the stock are mixed, with 0 analysts rating it as a “buy”, 1 as “overweight”, 1 as “hold”, and 0 as “sell”.

The public float for MGIC is 25.87M, and at present, short sellers hold a 1.02% of that float. On July 04, 2025, the average trading volume of MGIC was 59.43K shares.

MGIC’s Market Performance

MGIC’s stock has seen a 14.36% increase for the week, with a 28.33% rise in the past month and a 54.25% gain in the past quarter. The volatility ratio for the week is 2.88%, and the volatility levels for the past 30 days are at 2.29% for Magic Software Enterprises Ltd. The simple moving average for the past 20 days is 18.98% for MGIC’s stock, with a 57.71% simple moving average for the past 200 days.

Analysts’ Opinion of MGIC

H.C. Wainwright, on the other hand, stated in their research note that they expect to see MGIC reach a price target of $17, previously predicting the price at $8.50. The rating they have provided for MGIC stocks is “Buy” according to the report published on August 17th, 2020.

Rodman & Renshaw gave a rating of “Buy” to MGIC, setting the target price at $10 in the report published on May 17th of the previous year.

MGIC Trading at 30.15% from the 50-Day Moving Average

After a stumble in the market that brought MGIC to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 1.27% of gains for the given period.

Volatility was left at 2.29%, however, over the last 30 days, the volatility rate increased by 2.88%, as shares surge +26.76% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +55.17% upper at present.

During the last 5 trading sessions, MGIC rose by +14.36%, which changed the moving average for the period of 200-days by +80.00% in comparison to the 20-day moving average, which settled at $17.40. In addition, Magic Software Enterprises Ltd saw 107.21% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

N/A, the N/A of Magic Software Enterprises Ltd, N/A N/A shares at N/A during a trade that took place back on N/A, which means that N/A is holding N/A shares at N/A based on the most recent closing price.

Stock Fundamentals for MGIC

Current profitability levels for the company are sitting at:

  • 0.11% for the present operating margin
  • 0.28% for the gross margin

The net margin for Magic Software Enterprises Ltd stands at 0.07%. The total capital return value is set at 0.18%. Equity return is now at value 13.87%, with 7.02% for asset returns.

Based on Magic Software Enterprises Ltd (MGIC), the company’s capital structure generated 0.23 points at debt to capital in total, while cash flow to debt ratio is standing at 0.75. The debt to equity ratio resting at 0.3. The interest coverage ratio of the stock is 11.05.

Currently, EBITDA for the company is 82.06 million with net debt to EBITDA at -0.27. When we switch over and look at the enterprise to sales, we see a ratio of 1.75. The receivables turnover for the company is 3.95for trailing twelve months and the total asset turnover is 1.07. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.51.

Conclusion

To sum up, Magic Software Enterprises Ltd (MGIC) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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