Wix.com (NASDAQ:WIX) Given New $58.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its Wix.com price target from $60 to $58 and maintained a “sector perform” rating, implying 17.29% downside from the prior close.
• Analyst views are mixed: Wix has a consensus “Hold” rating and an average target of $88.33, with 10 Buy, 10 Hold, and 3 Sell ratings.
• Wix beat quarterly EPS and revenue estimates, with revenue up 12.9% year over year; however, increased AI and marketing investment is weighing on its cash-flow outlook, alongside slower growth in its core business.

Wix.com (NASDAQ:WIX - Get Free Report) had its price target dropped by research analysts at Royal Bank Of Canada from $60.00 to $58.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm presently has a "sector perform" rating on the information services provider's stock. Royal Bank Of Canada's target price would suggest a potential downside of 17.29% from the stock's previous close.

Other research analysts also recently issued reports about the company. Weiss Ratings upgraded Wix.com from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, September 11th. Bank of America cut Wix.com from a "buy" rating to an "underperform" rating and decreased their price objective for the stock from $75.00 to $68.00 in a report on Tuesday. Benchmark reaffirmed a "buy" rating on shares of Wix.com in a research report on Wednesday, August 26th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $85.00 price objective on shares of Wix.com in a research report on Tuesday. Finally, UBS Group set a $110.00 target price on Wix.com in a research note on Monday, October 26th. Ten equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, Wix.com currently has a consensus rating of "Hold" and a consensus price target of $88.33.

Wix.com Stock Performance

WIX stock traded up $5.74 during trading on Wednesday, hitting $70.12. The stock had a trading volume of 209,047 shares, compared to its average volume of 1,912,616. The stock has a market cap of $4.09 billion, a price-to-earnings ratio of -19.82, a price-to-earnings-growth ratio of 33.15 and a beta of 1.06. The company's 50 day moving average price is $76.88 and its two-hundred day moving average price is $70.32. Wix.com has a 1-year low of $40.16 and a 1-year high of $135.00.

Wix.com (NASDAQ:WIX - Get Free Report) last released its quarterly earnings results on Tuesday, November 10th. The information services provider reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.02. The company had revenue of $570.17 million for the quarter, compared to analysts' expectations of $566.27 million. Wix.com had a negative net margin of 8.19% and a negative return on equity of 1.61%. The firm's revenue for the quarter was up 12.9% compared to the same quarter last year. During the same period last year, the company earned $1.80 EPS. As a group, sell-side analysts forecast that Wix.com will post 0.24 earnings per share for the current fiscal year.

Insider Activity at Wix.com

In related news, CFO Lior Shemesh acquired 456 shares of the stock in a transaction dated Monday, August 31st. The stock was bought at an average cost of $59.89 per share, with a total value of $27,309.84. Following the purchase, the chief financial officer directly owned 221,567 shares of the company's stock, valued at approximately $13,269,647.63. This represents a 0.21% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Avishai Abrahami acquired 654 shares of the company's stock in a transaction dated Monday, August 31st. The shares were purchased at an average price of $59.89 per share, with a total value of $39,168.06. Following the completion of the acquisition, the chief executive officer owned 486,225 shares in the company, valued at approximately $29,120,015.25. The trade was a 0.13% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought a total of 2,622 shares of company stock valued at $157,032 over the last 90 days. 6.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Wix.com

Institutional investors have recently added to or reduced their stakes in the company. Senvest Management LLC raised its holdings in shares of Wix.com by 24.8% in the 1st quarter. Senvest Management LLC now owns 3,754,680 shares of the information services provider's stock worth $338,184,000 after purchasing an additional 746,200 shares during the period. Hsbc Holdings PLC grew its holdings in shares of Wix.com by 11,894.0% during the 1st quarter. Hsbc Holdings PLC now owns 3,529,474 shares of the information services provider's stock worth $318,676,000 after purchasing an additional 3,500,047 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in shares of Wix.com by 57.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,585,962 shares of the information services provider's stock worth $142,848,000 after purchasing an additional 578,729 shares during the period. OMERS ADMINISTRATION Corp increased its position in Wix.com by 7,102.6% during the 1st quarter. OMERS ADMINISTRATION Corp now owns 695,267 shares of the information services provider's stock worth $62,623,000 after purchasing an additional 685,614 shares in the last quarter. Finally, Renaissance Technologies LLC increased its position in Wix.com by 52.1% during the 1st quarter. Renaissance Technologies LLC now owns 576,049 shares of the information services provider's stock worth $51,885,000 after purchasing an additional 197,200 shares in the last quarter. Hedge funds and other institutional investors own 81.52% of the company's stock.

Wix.com News Roundup

These are some of the WIX news items that stood out recently:

• Neutral Sentiment: Cantor Fitzgerald lowered its price target from $90 to $80 but maintained an Overweight rating, suggesting it still sees potential upside. Cantor Fitzgerald price target update
• Negative Sentiment: Wix cut its cash-flow margin outlook as it plans greater investment in AI and marketing. Reports also point to slower sales growth in its core business, tempering the positive quarterly results. Wix increases AI spending and cuts cash-flow outlook Base44 growth and slower core sales
• Negative Sentiment: Bank of America downgraded WIX to Underperform from Buy and cut its target to $68 from $75. JPMorgan also lowered its target, to $59 from $62, and maintained an Underweight rating. Analyst downgrades JPMorgan lowers Wix price target

About Wix.com

Wix.com Ltd. is a cloud-based platform that enables individuals, businesses and organizations to create and manage websites. Its tools include customizable templates, a visual website editor and hosting, allowing users to build sites without advanced coding skills or develop more customized experiences. The company also offers services for online businesses, including e-commerce features, appointment booking, payments, marketing tools and website analytics. Its products are designed to help customers manage multiple aspects of their online presence through one platform.

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