Cfra Research Upgrades Wix.com (NASDAQ:WIX) to Moderate Buy

Key Points

• Cfra Research has upgraded Wix.com from a "hold" to a "moderate buy" rating, indicating increased analyst confidence in the company's stock.
• Wix.com reported earnings of $2.28 per share, which significantly exceeded analysts' expectations of $1.79, highlighting strong financial performance.
• The company has authorized a $200 million share buyback program, reflecting management's belief that the stock is undervalued.

Wix.com (NASDAQ:WIX - Get Free Report) was upgraded by analysts at Cfra Research from a "hold" rating to a "moderate buy" rating in a note issued to investors on Tuesday,Zacks.com reports.

A number of other analysts have also recently commented on WIX. Robert W. Baird raised Wix.com from a "neutral" rating to an "outperform" rating and dropped their price target for the stock from $215.00 to $190.00 in a research report on Friday, May 23rd. Royal Bank Of Canada lowered their price objective on Wix.com from $245.00 to $210.00 and set an "outperform" rating for the company in a research note on Thursday, May 22nd. Barclays set a $235.00 target price on Wix.com and gave the stock an "overweight" rating in a report on Thursday, August 7th. Raymond James Financial restated a "strong-buy" rating on shares of Wix.com in a report on Thursday, August 7th. Finally, Wells Fargo & Company raised Wix.com from an "equal weight" rating to an "overweight" rating and lifted their price target for the stock from $173.00 to $216.00 in a research report on Monday, June 16th. One equities research analyst has rated the stock with a hold rating, eighteen have given a buy rating and three have issued a strong buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $213.53.

Wix.com Stock Up 2.9%

NASDAQ:WIX opened at $120.73 on Tuesday. The firm's fifty day simple moving average is $149.91 and its 200 day simple moving average is $170.14. The stock has a market cap of $6.77 billion, a P/E ratio of 42.96, a price-to-earnings-growth ratio of 1.88 and a beta of 1.27. Wix.com has a twelve month low of $114.89 and a twelve month high of $247.11.

Wix.com (NASDAQ:WIX - Get Free Report) last announced its earnings results on Wednesday, August 6th. The information services provider reported $2.28 earnings per share for the quarter, beating analysts' consensus estimates of $1.79 by $0.49. Wix.com had a net margin of 8.90% and a negative return on equity of 136.43%. The firm had revenue of $489.93 million for the quarter, compared to analyst estimates of $487.62 million. During the same quarter in the previous year, the firm posted $1.67 EPS. The company's revenue for the quarter was up 12.4% compared to the same quarter last year. On average, analysts expect that Wix.com will post 3.65 EPS for the current fiscal year.

Wix.com declared that its Board of Directors has authorized a share buyback program on Monday, August 11th that authorizes the company to buyback $200.00 million in shares. This buyback authorization authorizes the information services provider to buy up to 2.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Senvest Management LLC boosted its stake in Wix.com by 32.2% during the second quarter. Senvest Management LLC now owns 2,040,910 shares of the information services provider's stock valued at $323,403,000 after buying an additional 496,770 shares during the last quarter. Durable Capital Partners LP purchased a new stake in shares of Wix.com during the 4th quarter worth approximately $89,839,000. Norges Bank purchased a new stake in shares of Wix.com during the 2nd quarter worth approximately $66,132,000. Whale Rock Capital Management LLC boosted its position in shares of Wix.com by 55.1% during the 4th quarter. Whale Rock Capital Management LLC now owns 1,071,565 shares of the information services provider's stock valued at $229,904,000 after acquiring an additional 380,800 shares during the last quarter. Finally, Assenagon Asset Management S.A. grew its holdings in shares of Wix.com by 1,209.4% in the first quarter. Assenagon Asset Management S.A. now owns 344,713 shares of the information services provider's stock valued at $56,319,000 after purchasing an additional 318,387 shares in the last quarter. Hedge funds and other institutional investors own 81.52% of the company's stock.

About Wix.com

Wix.com Ltd., together with its subsidiaries, operates as a cloud-based web development platform for registered users and creators worldwide. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; and Wix ADI that enables users to have the freedom of customization that the classic editor offers.

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