Wix.com (NASDAQ:WIX) Rating Lowered to "Underperform" at Bank of America

Key Points

• Bank of America downgraded Wix.com from “buy” to “underperform” and cut its price target from $75 to $68, implying about 2.5% downside from the stock’s current price.
• Analyst opinion overall remains mixed: MarketBeat reports a consensus “hold” rating and an average price target of $89.33, with 10 buy, 10 hold, and 3 sell ratings.
• Wix beat quarterly expectations, reporting EPS of $1.42 versus $1.40 expected and revenue of $570.17 million versus $566.27 million expected; its shares were reported down 8.3%.

Wix.com (NASDAQ:WIX - Get Free Report) was downgraded by Bank of America from a "buy" rating to an "underperform" rating in a research note issued to investors on Tuesday, MarketBeat Ratings reports. They presently have a $68.00 target price on the information services provider's stock, down from their prior target price of $75.00. Bank of America's price objective would suggest a potential downside of 2.51% from the stock's current price.

Several other analysts have also issued reports on the company. Weiss Ratings raised Wix.com from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, September 11th. Jefferies Financial Group reaffirmed a "buy" rating and set a $85.00 price objective on shares of Wix.com in a research report on Tuesday. Raymond James Financial downgraded shares of Wix.com from a "strong-buy" rating to an "outperform" rating and reduced their price objective for the stock from $75.00 to $70.00 in a research note on Thursday, July 30th. Morgan Stanley lowered shares of Wix.com from an "overweight" rating to an "equal weight" rating and decreased their target price for the company from $112.00 to $60.00 in a report on Tuesday, July 21st. Finally, Wells Fargo & Company boosted their target price on shares of Wix.com from $46.00 to $64.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 5th. Ten investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $89.33.

Wix.com Trading Down 8.3%

NASDAQ WIX opened at $69.75 on Tuesday. The company has a 50 day moving average of $77.36 and a 200-day moving average of $70.42. Wix.com has a 1-year low of $40.16 and a 1-year high of $137.62.

Wix.com (NASDAQ:WIX - Get Free Report) last issued its quarterly earnings results on Tuesday, November 10th. The information services provider reported $1.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.40 by $0.02. Wix.com had a negative return on equity of 1.61% and a negative net margin of 8.19%. The business had revenue of $570.17 million for the quarter, compared to the consensus estimate of $566.27 million. Sell-side analysts expect that Wix.com will post 0.24 earnings per share for the current fiscal year.

Insider Activity at Wix.com

In other Wix.com news, CEO Avishai Abrahami acquired 654 shares of the company's stock in a transaction that occurred on Monday, August 31st. The stock was acquired at an average cost of $59.89 per share, for a total transaction of $39,168.06. Following the transaction, the chief executive officer directly owned 486,225 shares in the company, valued at $29,120,015.25. This represents a 0.13% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Ron Gutler sold 5,718 shares of the firm's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $85.42, for a total value of $488,431.56. Following the completion of the sale, the director directly owned 15,631 shares in the company, valued at $1,335,200.02. This trade represents a 26.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have acquired 2,622 shares of company stock worth $157,032 in the last three months. Insiders own 6.20% of the company's stock.

Hedge Funds Weigh In On Wix.com

A number of institutional investors have recently added to or reduced their stakes in WIX. Senvest Management LLC boosted its stake in shares of Wix.com by 24.8% during the first quarter. Senvest Management LLC now owns 3,754,680 shares of the information services provider's stock valued at $338,184,000 after purchasing an additional 746,200 shares in the last quarter. Hsbc Holdings PLC grew its stake in Wix.com by 11,894.0% during the first 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 increased its holdings in Wix.com by 57.5% in the first 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 in the last quarter. OMERS ADMINISTRATION Corp increased its holdings in Wix.com by 7,102.6% in the first 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 lifted its stake in Wix.com by 52.1% in the first quarter. Renaissance Technologies LLC now owns 576,049 shares of the information services provider's stock valued at $51,885,000 after buying an additional 197,200 shares during the period. 81.52% of the stock is currently owned by institutional investors and hedge funds.

Wix.com Company Profile

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.

Founded in 2006, Wix is headquartered in Tel Aviv, Israel, and serves customers internationally.

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