Not a good buy right now for an impatient buyer: momentum is bearish (MACD histogram negative and widening) and the pattern-based forward bias points to further weakness over the next week/month.
Price (22.07) is sitting just above near-term support (S1 ~21.89). That’s not a high-conviction “buy-now” setup without a clear reversal trigger.
Options positioning is bullish (very low put/call ratios), but overall liquidity is tiny; I would not treat it as a strong, reliable sentiment signal.
Trend/Momentum: MACD histogram is -0.556 (below zero) and negatively expanding → downside momentum is strengthening.
RSI: RSI_6 at 20.763 reads as deeply oversold by typical thresholds, which can precede a bounce, but it is not a buy signal by itself without confirmation.
Moving averages: Converging MAs → consolidation/transition phase, but current momentum skews bearish.
Key levels: Support S1 ~21.892 (very close), then S2 ~20.273. Resistance/pivot overhead at ~24.512; meaningful upside needs reclaiming that pivot.
Quant/pattern outlook provided: ~70% chance of only +0.16% next day, but -2.22% next week and -4.24% next month → unfavorable near-term risk/reward for “buy now.”
Activity: Total volume is very small (15 contracts), but “today vs avg 30D volume” is 300 → relative spike off a low base.
Open interest: Calls 222 vs puts 28 (total OI 250) → call-heavy structure.
Volatility: IV30 ~61.16 vs HV ~70.71; IV percentile ~67.73 → elevated option pricing/uncertainty; not an ideal environment to “chase” without a clear catalyst.
Takeaway: Options sentiment looks bullish, but low absolute liquidity makes it a weaker confirmation signal.
Technical Summary
Sell
8
Buy
6
Positive Catalysts
Fundamentals are improving: 2025/Q3 showed double-digit YoY growth in revenue, net income, and EPS.
Potential technical bounce setup: very low short-term RSI can lead to mean-reversion pops if support holds.
No adverse news flow in the last week (no new negative headline catalyst identified).
Neutral/Negative Catalysts
No identified near-term news catalyst to force a reversal.
No analyst rating/price target change data was provided, so a recent Wall Street upgrade/downgrade trend cannot be confirmed.
Wall Street-style pros (based on provided fundamentals): accelerating revenue/earnings growth.
Wall Street-style cons (based on provided technicals/margins): margin compression and currently bearish price momentum; lacking a clear catalyst for immediate re-rating.
Wall Street analysts forecast MGIC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MGIC is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Analyst Rating
0
Wall Street analysts forecast MGIC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MGIC is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Buy
Hold
Sell
0
Current: 21.630
Low
0
Averages
0
High
0
0
Current: 21.630
Low
0
Averages
0
High
0
Barclays
Overweight
maintain
$16 -> $18
AI Analysis
2025-08-13
Reason
Barclays
Price Target
$16 -> $18
AI Analysis
2025-08-13
maintain
Overweight
Reason
Barclays raised the firm's price target on Magic Software to $18 from $16 and keeps an Overweight rating on the shares. The company's top-line growth was higher than the firm's estimates as well as consensus, while margins came in lower, the analyst tells investors in a research note. The firm added that management raised year-end guidance slightly, commenting on positive traction, and lifted its price target as it rolls its target multiples forward to its FY26 revenues.
Barclays
Tavy Rosner
Buy
Maintains
$15 → $16
2025-03-13
Reason
Barclays
Tavy Rosner
Price Target
$15 → $16
2025-03-13
Maintains
Buy
Reason
Barclays analyst Tavy Rosner raised the firm's price target on Magic Software to $16 from $15 and keeps an Overweight rating on the shares. The company reported a solid quarter and improving outlook but the "main event" is the merger proposal with Matrix, the analyst tells investors in a research note.
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