Wix.com (NASDAQ:WIX) Stock Rating Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Wix.com from “Buy” to “Hold.” The broader analyst consensus is also “Hold,” with 11 Buy, 10 Hold, and 2 Sell ratings and an average price target of $91.29.
• Wix shares opened at $72.62, down 1%, while the company’s latest quarterly results exceeded expectations: EPS was $1.39 versus $1.13 expected, and revenue rose 14.9% year over year to $563.06 million.
• Insider activity was mixed, with a director selling $488,432 of stock under a pre-arranged trading plan while the chief marketing officer made a smaller purchase; institutional investors own 81.52% of the company.

Wix.com (NASDAQ:WIX - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Sunday, Wall Street Zen reports.

Several other research analysts also recently issued reports on the company. Wedbush lifted their price target on Wix.com from $55.00 to $80.00 and gave the stock a "neutral" rating in a research note on Thursday, August 20th. Scotiabank reissued an "outperform" rating on shares of Wix.com in a research note on Tuesday, June 9th. Benchmark restated a "buy" rating on shares of Wix.com in a report on Wednesday, August 26th. JPMorgan Chase & Co. cut their target price on shares of Wix.com from $86.00 to $62.00 and set an "underweight" rating for the company in a research report on Thursday, June 18th. Finally, Raymond James Financial downgraded shares of Wix.com from a "strong-buy" rating to an "outperform" rating and reduced their price target for the company from $75.00 to $70.00 in a report on Thursday, July 30th. Eleven investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Wix.com currently has an average rating of "Hold" and an average price target of $91.29.

Wix.com Stock Down 1.0%

Shares of NASDAQ WIX opened at $72.62 on Friday. Wix.com has a 52 week low of $40.16 and a 52 week high of $155.47. The firm has a 50-day moving average price of $74.39 and a 200 day moving average price of $66.77. The stock has a market capitalization of $4.23 billion, a price-to-earnings ratio of -20.51, a price-to-earnings-growth ratio of 34.52 and a beta of 1.01.

Wix.com (NASDAQ:WIX - Get Free Report) last issued its earnings results on Tuesday, August 4th. The information services provider reported $1.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.13 by $0.26. The company had revenue of $563.06 million during the quarter, compared to analysts' expectations of $552.56 million. Wix.com had a negative net margin of 8.19% and a negative return on equity of 1.61%. The firm's quarterly revenue was up 14.9% compared to the same quarter last year. During the same period last year, the company posted $2.28 earnings per share. Equities research analysts expect that Wix.com will post 0.24 EPS for the current fiscal year.

Insider Transactions at Wix.com

In related news, Director Ron Gutler sold 5,718 shares of the stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $85.42, for a total transaction of $488,431.56. Following the transaction, the director directly owned 15,631 shares in the company, valued at approximately $1,335,200.02. This represents a 26.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Omer Shai purchased 490 shares of the firm's stock in a transaction on Monday, August 31st. The stock was acquired at an average cost of $59.89 per share, for a total transaction of $29,346.10. Following the completion of the purchase, the chief marketing officer owned 515,879 shares in the company, valued at $30,895,993.31. The trade was a 0.10% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 2,622 shares of company stock worth $157,032 in the last three months. 6.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of WIX. Versant Capital Management Inc boosted its position in shares of Wix.com by 537.6% in the third quarter. Versant Capital Management Inc now owns 542 shares of the information services provider's stock worth $39,000 after acquiring an additional 457 shares during the last quarter. Engineers Gate Manager LP increased its position in Wix.com by 378.0% during the second quarter. Engineers Gate Manager LP now owns 34,750 shares of the information services provider's stock worth $1,577,000 after purchasing an additional 27,480 shares during the last quarter. Readystate Asset Management LP acquired a new position in Wix.com during the second quarter worth approximately $485,000. Headlands Technologies LLC purchased a new position in Wix.com during the second quarter worth approximately $475,000. Finally, Quantitative Investment Management LLC purchased a new position in Wix.com during the second quarter worth approximately $605,000. 81.52% of the stock is currently owned by hedge funds and other institutional investors.

About Wix.com

Wix.com Ltd. is a cloud-based web development and digital services company that enables individuals, entrepreneurs and businesses to create, manage and grow an online presence. Its platform provides no-code and low-code tools, professionally designed templates, drag-and-drop editing, artificial intelligence features, website hosting, domain registration and related business solutions.

In addition to its core website builder, Wix offers tools for e-commerce, online payments, bookings, events, restaurants, marketing, customer relationship management and business analytics.

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