Bank of America Has Lowered Expectations for Wix.com (NASDAQ:WIX) Stock Price

Key Points

• Bank of America cut its price target for Wix from $136 to $109 but kept a "buy" rating, with the new target implying roughly a 38% upside from the current price.
• Analyst sentiment remains a consensus "Moderate Buy" with a $125.40 average price target even as several firms (including Morgan Stanley, Jefferies and UBS) have trimmed targets or downgraded ratings.
• Wix beat EPS estimates ($1.81 vs. $1.36) while revenue slightly missed, and the board authorized a $2.00 billion share buyback program that could repurchase up to 40.5% of shares.

Wix.com (NASDAQ:WIX - Get Free Report) had its price target reduced by equities researchers at Bank of America from $136.00 to $109.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage presently has a "buy" rating on the information services provider's stock. Bank of America's target price indicates a potential upside of 38.34% from the company's current price.

A number of other analysts also recently issued reports on WIX. Zacks Research raised shares of Wix.com from a "strong sell" rating to a "hold" rating in a report on Friday, January 30th. Cantor Fitzgerald reiterated an "overweight" rating and set a $130.00 price objective on shares of Wix.com in a research note on Thursday, March 5th. Morgan Stanley decreased their price target on Wix.com from $181.00 to $160.00 and set an "overweight" rating on the stock in a research note on Thursday, January 15th. Jefferies Financial Group lowered their target price on Wix.com from $200.00 to $130.00 and set a "buy" rating for the company in a research note on Monday, February 23rd. Finally, UBS Group lowered shares of Wix.com from a "buy" rating to a "neutral" rating and decreased their price target for the company from $145.00 to $96.00 in a report on Thursday, April 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $125.40.

Wix.com Price Performance

Shares of WIX stock opened at $78.79 on Tuesday. The company has a fifty day moving average price of $78.66 and a two-hundred day moving average price of $98.76. Wix.com has a one year low of $60.22 and a one year high of $191.24. The stock has a market cap of $4.59 billion, a P/E ratio of 95.71, a P/E/G ratio of 2.35 and a beta of 1.26.

Wix.com (NASDAQ:WIX - Get Free Report) last issued its earnings results on Wednesday, March 4th. The information services provider reported $1.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.45. Wix.com had a net margin of 2.54% and a negative return on equity of 70.04%. The business had revenue of $524.27 million during the quarter, compared to the consensus estimate of $527.69 million. During the same period last year, the business posted $2.10 EPS. Wix.com's revenue was up 13.9% on a year-over-year basis. As a group, equities research analysts anticipate that Wix.com will post 1.39 EPS for the current fiscal year.

Wix.com announced that its board has authorized a stock buyback program on Wednesday, January 28th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the information services provider to repurchase up to 40.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Wix.com

Institutional investors have recently added to or reduced their stakes in the business. SG Americas Securities LLC raised its holdings in shares of Wix.com by 1.9% in the 1st quarter. SG Americas Securities LLC now owns 970,500 shares of the information services provider's stock worth $87,413,000 after acquiring an additional 17,697 shares during the last quarter. Rockefeller Capital Management L.P. grew its holdings in Wix.com by 17.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,741 shares of the information services provider's stock worth $285,000 after buying an additional 410 shares in the last quarter. Corient Private Wealth LLC raised its position in Wix.com by 43.5% in the 4th quarter. Corient Private Wealth LLC now owns 6,548 shares of the information services provider's stock valued at $680,000 after buying an additional 1,985 shares during the last quarter. Avory & Company LLC bought a new position in Wix.com during the 4th quarter valued at $359,000. Finally, Alberta Investment Management Corp purchased a new position in Wix.com during the 4th quarter worth $1,039,000. 81.52% of the stock is owned by institutional investors and hedge funds.

About Wix.com

Wix.com Ltd. operates a cloud-based platform that enables individuals and businesses to create, manage and develop professional web presences through an intuitive drag-and-drop interface. The company's software-as-a-service model provides hosting, customizable templates and a range of design tools, eliminating the need for coding expertise. Users can choose from a variety of premium plans to access custom domains, enhanced storage, and advanced performance features tailored to personal projects, small businesses and online storefronts.

Beyond its core website builder, Wix offers a suite of complementary services designed to support digital growth and marketing.

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