Will Magic Software Enterprises Ltd. (MGIC) Short Squeeze Soon? The Stock Formed a Descending Triangle Chart Pattern

July 16, 2018 - By Ash Maslow

Magic Software Enterprises Ltd. (NASDAQ:MGIC) Logo

The stock of Magic Software Enterprises Ltd. (MGIC) formed a descending triangle with $9.27 target or 9.00 % above today’s $8.50 share price. The 5 months triangle pattern indicates low risk for the $414.44M company. If the $9.27 price target is reached, the company will be worth $37.30M more.
The descending triangle is in our view more reliable than the ascending one. The descending triangle pattern has break even failure rate for up and down breakouts of 7% and 16%, respectively. The average rise and decline is 47% and 16%. The throwback or so called pullback rates are: 37% and 54%. The stocks meeting their targets is high for this type of breakout: 84% and 54% percent.

It closed at $8.5 lastly. It is down 4.85% since July 16, 2017 and is uptrending. It has underperformed by 7.72% the S&P500.

Analysts await Magic Software Enterprises Ltd. (NASDAQ:MGIC) to report earnings on August, 8. They expect $0.15 earnings per share, up 15.38 % or $0.02 from last year’s $0.13 per share. MGIC’s profit will be $7.31 million for 14.17 P/E if the $0.15 EPS becomes a reality. After $0.14 actual earnings per share reported by Magic Software Enterprises Ltd. for the previous quarter, Wall Street now forecasts 7.14 % EPS growth.

More news for Magic Software Enterprises Ltd. (NASDAQ:MGIC) were recently published by: Digitaljournal.com, which released: “Magic Software Becomes a Microsoft One Commercial Partner with the Highly-Coveted Co-Sell Ready Status” on July 10, 2018. Globenewswire.com‘s article titled: “Magic to Announce Second Quarter 2018 Financial Results on August 8, 2018” and published on July 16, 2018 is yet another important article.

Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and IT outsourcing software services in Israel and internationally. The company has market cap of $414.44 million. The company's Software Services segment develops, markets, sells, and supports a proprietary and none proprietary application platform, software applications, and business and process integration solutions and related services. It has a 24.29 P/E ratio. The Company’s IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, and communications services and solutions, as well as supplemental outsourcing services.

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