Wix.com (NASDAQ:WIX) Stock Rating Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Wix.com from “hold” to “buy,” although analysts remain divided overall: 11 rate the stock a Buy, 10 a Hold and two a Sell, with an average price target of $91.29.
• Wix reported quarterly EPS of $1.39, exceeding the $1.13 consensus estimate, while revenue reached $563.06 million and rose 14.9% year over year. Despite the earnings beat, the company posted a negative net margin of 8.19%.
• Company insiders purchased 2,622 shares worth approximately $157,000 over the past three months, while institutional investors own a substantial 81.52% of outstanding shares.

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

WIX has been the subject of a number of other reports. Morgan Stanley downgraded shares of Wix.com from an "overweight" rating to an "equal weight" rating and reduced their price target for the company from $112.00 to $60.00 in a report on Tuesday, July 21st. Evercore set a $95.00 price objective on shares of Wix.com in a research report on Tuesday, August 4th. Benchmark reiterated a "buy" rating on shares of Wix.com in a research note on Wednesday, August 26th. JPMorgan Chase & Co. reduced 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 note on Thursday, June 18th. Finally, Cantor Fitzgerald boosted their price target on Wix.com from $65.00 to $80.00 and gave the company an "overweight" rating in a research note on Wednesday, August 5th. Eleven research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Wix.com has an average rating of "Hold" and an average price target of $91.29.

Wix.com Stock Down 4.8%

WIX opened at $73.79 on Friday. The stock's 50 day moving average price is $72.29 and its two-hundred day moving average price is $67.39. The firm has a market capitalization of $4.30 billion, a P/E ratio of -20.84, a price-to-earnings-growth ratio of 36.85 and a beta of 1.02. Wix.com has a 12-month low of $40.16 and a 12-month high of $181.11.

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

Insider Transactions at Wix.com

In other Wix.com news, CEO Avishai Abrahami acquired 654 shares of the company's stock in a transaction dated Monday, August 31st. The stock was bought at an average price of $59.89 per share, for a total transaction of $39,168.06. Following the purchase, the chief executive officer owned 486,225 shares in the company, valued at $29,120,015.25. This represents a 0.13% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CMO Omer Shai acquired 490 shares of the company's stock in a transaction dated Monday, August 31st. The stock was acquired at an average price of $59.89 per share, with a total value of $29,346.10. Following the purchase, the chief marketing officer owned 515,879 shares in the company, valued at approximately $30,895,993.31. This represents a 0.10% increase in their position. The SEC filing for this purchase provides additional information. Over the last three months, insiders have purchased 2,622 shares of company stock worth $157,032. 6.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in WIX. Senvest Management LLC boosted its holdings in 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 raised its holdings in shares of Wix.com by 11,894.0% in the 1st quarter. Hsbc Holdings PLC now owns 3,529,474 shares of the information services provider's stock worth $318,676,000 after buying an additional 3,500,047 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position 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 buying an additional 578,729 shares during the period. Atreides Management LP acquired a new stake in Wix.com in the 4th quarter valued at $129,598,000. Finally, Clearbridge Investments LLC boosted its stake in Wix.com by 20.4% in the 4th quarter. Clearbridge Investments LLC now owns 1,079,489 shares of the information services provider's stock valued at $112,148,000 after buying an additional 183,100 shares in the last quarter. Institutional investors and hedge funds own 81.52% of the company's stock.

Wix.com Company Profile

Wix.com Ltd. is an Israeli software company that operates a cloud-based website development platform. Its services enable individuals, entrepreneurs, small businesses and organizations to create, manage and grow websites without requiring extensive coding expertise.

The company offers customizable website templates and visual design tools, along with domain registration, web hosting, content management, search engine optimization and online marketing capabilities. Wix also provides tools for e-commerce, online payments, bookings, events, restaurants and other business operations, as well as professional development products through Wix Studio and third-party applications available through its app marketplace.

Founded in 2006 by Avishai Abrahami, Nadav Abrahami and Giora Kaplan, Wix is headquartered in Tel Aviv, Israel, and serves customers internationally.

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