First Trust Advisors LP Decreases Stock Position in Wix.com Ltd. $WIX

Key Points

• First Trust Advisors reduced its position in Wix by 6.8%, selling 23,380 shares to hold 320,085 shares (≈0.57% of the company) valued at $56.86 million, while institutional ownership stands at about 81.52%.
• Wix's board has authorized a $2.00 billion buyback program that could repurchase up to 40.5% of outstanding shares, signaling management believes the stock may be undervalued.
• Wix beat quarterly EPS estimates ($1.81 vs. $1.36) with revenue up 13.9% year-over-year but slightly below consensus; the stock trades at a high valuation (PE ~111) and carries a MarketBeat consensus of "Moderate Buy" with an average target of $140.50.

First Trust Advisors LP lowered its position in shares of Wix.com Ltd. (NASDAQ:WIX - Free Report) by 6.8% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 320,085 shares of the information services provider's stock after selling 23,380 shares during the period. First Trust Advisors LP owned approximately 0.57% of Wix.com worth $56,857,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the company. Westside Investment Management Inc. boosted its stake in shares of Wix.com by 100.0% in the third quarter. Westside Investment Management Inc. now owns 154 shares of the information services provider's stock valued at $27,000 after purchasing an additional 77 shares during the period. Geneos Wealth Management Inc. increased its stake in Wix.com by 632.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the information services provider's stock worth $41,000 after buying an additional 215 shares during the period. MAI Capital Management increased its stake in Wix.com by 109.1% during the 3rd quarter. MAI Capital Management now owns 366 shares of the information services provider's stock worth $65,000 after buying an additional 191 shares during the period. Penserra Capital Management LLC acquired a new position in Wix.com in the 2nd quarter worth $77,000. Finally, New Age Alpha Advisors LLC lifted its holdings in Wix.com by 100.0% in the 3rd quarter. New Age Alpha Advisors LLC now owns 690 shares of the information services provider's stock worth $116,000 after buying an additional 345 shares in the last quarter. 81.52% of the stock is owned by institutional investors and hedge funds.

Wix.com Stock Performance

Shares of Wix.com stock opened at $90.09 on Wednesday. Wix.com Ltd. has a 1 year low of $60.22 and a 1 year high of $191.24. The firm's 50-day simple moving average is $82.51 and its 200-day simple moving average is $115.06. The firm has a market cap of $5.25 billion, a PE ratio of 111.22, a price-to-earnings-growth ratio of 1.98 and a beta of 1.39.

Wix.com (NASDAQ:WIX - Get Free Report) last posted its quarterly earnings results on Wednesday, March 4th. The information services provider reported $1.81 EPS for the quarter, topping analysts' consensus estimates of $1.36 by $0.45. Wix.com had a negative return on equity of 70.04% and a net margin of 2.54%.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 firm earned $2.10 earnings per share. The company's revenue for the quarter was up 13.9% compared to the same quarter last year. On average, equities analysts predict that Wix.com Ltd. will post 3.65 earnings per share for the current year.

Wix.com announced that its board has initiated a stock buyback plan on Wednesday, January 28th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the information services provider to purchase up to 40.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company's management believes its stock is undervalued.

Analyst Ratings Changes

WIX has been the subject of several recent analyst reports. Zacks Research upgraded Wix.com from a "strong sell" rating to a "hold" rating in a research note on Friday, January 30th. Royal Bank Of Canada cut their price target on Wix.com from $155.00 to $112.00 and set an "outperform" rating on the stock in a research note on Thursday, March 5th. Weiss Ratings downgraded Wix.com from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday. Morgan Stanley dropped their price objective on Wix.com from $181.00 to $160.00 and set an "overweight" rating on the stock in a report on Thursday, January 15th. Finally, Robert W. Baird lowered Wix.com from an "outperform" rating to a "neutral" rating and cut their target price for the company from $115.00 to $90.00 in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Wix.com currently has a consensus rating of "Moderate Buy" and an average target price of $140.50.

Wix.com Company Profile

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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