Formula Systems (1985) Shares Gap Down - Should You Sell?

Shares of Formula Systems (1985) Ltd. (NASDAQ:FORTY) saw a significant drop before trading commenced on Wednesday. The stock, which had previously closed at $97.35, opened at $92.69, indicating a noticeable decline. As of the latest trading session, Formula Systems (1985) shares were priced at $96.10, with a trading volume of 2,146 shares.

Formula Systems (1985) Price Performance

The stock's performance can be assessed through its moving averages, which currently stand at $90.78 for the 50-day moving average and $83.16 for the 200-day moving average. Additionally, the company's financial health is highlighted by a debt-to-equity ratio of 0.22, a quick ratio of 1.38, and a current ratio of 1.41. Furthermore, the firm's market capitalization is approximately $1.47 billion, with a price-to-earnings (P/E) ratio of 19.95 and a beta of 1.07, indicating slight volatility in relation to the market.

Recent Earnings Report

Formula Systems (1985) last disclosed its earnings results on November 21st. In that quarter, the technology company reported earnings per share (EPS) of $1.51, demonstrating their operational performance. The return on equity was recorded at 5.68%, coupled with a net margin of 2.78%, reflecting the company's profitability.

Institutional Holdings

Recently, there has been movement among institutional investors regarding Formula Systems (1985). Jane Street Group LLC, for example, acquired a new position in the company during the third quarter, amassing 2,772 shares valued at roughly $222,000. Overall, institutional investors and hedge funds collectively own around 34.76% of the company's shares, hinting at significant interest from larger investment funds.

Company Overview

Formula Systems (1985) Ltd. operates through its subsidiaries, delivering both proprietary and non-proprietary software solutions, along with IT professional services. Their offerings include marketing and support for software products, computer infrastructure and integration solutions, as well as training and integration services on a global scale. They also market computers and peripheral equipment, alongside providing cloud-based solutions related to databases and big data.

Investment Considerations

Given the recent drop in stock price and current market evaluations, potential investors might want to evaluate if now is the right time to invest. Analysts currently rate Formula Systems (1985) as a 'Hold', suggesting caution in making immediate decisions. It could be beneficial to look into alternative investment opportunities that analysts recommend more favorably.

Formula, Stocks, Performance, Investors, Earnings