Swedbank AB Sells 74,600 Shares of Wix.com Ltd. $WIX

Key Points

• Swedbank AB sharply cut its Wix.com stake in the fourth quarter, selling 74,600 shares and reducing its holdings by 93% to 5,624 shares worth about $584,000.
• Wix is facing multiple legal investigations from law firms over possible securities-law violations, including claims it may have misled investors about AI demand, competition, and growth prospects.
• The stock has come under pressure after weak results and layoffs, with Wix missing earnings estimates, reporting revenue slightly below expectations, and reportedly announcing about 1,000 job cuts amid concerns about demand and margins.

Swedbank AB reduced its holdings in shares of Wix.com Ltd. (NASDAQ:WIX - Free Report) by 93.0% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 5,624 shares of the information services provider's stock after selling 74,600 shares during the quarter. Swedbank AB's holdings in Wix.com were worth $584,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Westside Investment Management Inc. lifted its holdings in shares of Wix.com by 100.0% during 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 in the last quarter. Farther Finance Advisors LLC lifted its holdings in shares of Wix.com by 122.2% during the fourth quarter. Farther Finance Advisors LLC now owns 240 shares of the information services provider's stock valued at $25,000 after purchasing an additional 132 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Wix.com by 632.4% during the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the information services provider's stock valued at $41,000 after purchasing an additional 215 shares in the last quarter. Flagship Harbor Advisors LLC bought a new position in shares of Wix.com during the fourth quarter valued at $27,000. Finally, National Bank of Canada FI bought a new position in Wix.com in the third quarter valued at about $54,000. 81.52% of the stock is owned by institutional investors.

Key Stories Impacting Wix.com

Here are the key news stories impacting Wix.com this week:

• Negative Sentiment: Multiple law firms, including Bragar Eagel & Squire, Glancy Prongay Wolke & Rotter, and others, announced investigations into Wix.com over possible securities-law violations tied to its recent disclosures and stock drop. These probes increase headline risk and could signal potential class-action litigation. Bragar Eagel & Squire investigation
• Negative Sentiment: BFA Law said it is investigating whether Wix misled investors about AI-demand issues, AI competition, and its ability to sustain growth through new products. That allegation directly targets the company’s growth narrative, which is especially important for a software stock. BFA Law investigation
• Negative Sentiment: News reports say Wix’s stock fell sharply after the company announced a large reduction in force of about 1,000 employees, reinforcing concerns that management is responding to weakening demand and margin pressure. Layoff report
• Negative Sentiment: Wix’s latest quarterly results missed earnings expectations, and revenue came in slightly below estimates, which appears to have been the catalyst for the recent selloff and the ensuing investigations. Quarterly results investigation article

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Jefferies Financial Group lowered their target price on Wix.com from $200.00 to $130.00 and set a "buy" rating on the stock in a report on Monday, February 23rd. Cantor Fitzgerald lowered their target price on Wix.com from $110.00 to $70.00 and set an "overweight" rating on the stock in a report on Thursday, May 14th. Weiss Ratings raised Wix.com from a "sell (d)" rating to a "sell (d+)" rating in a report on Thursday, May 14th. Royal Bank Of Canada downgraded Wix.com from an "outperform" rating to a "sector perform" rating and lowered their target price for the company from $90.00 to $60.00 in a report on Thursday, May 14th. Finally, Citigroup downgraded Wix.com from a "buy" rating to a "neutral" rating and lowered their target price for the company from $105.00 to $66.00 in a report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $100.90.

Wix.com Trading Down 3.4%

Shares of Wix.com stock opened at $53.46 on Thursday. The stock has a 50 day moving average of $73.76 and a 200 day moving average of $86.16. Wix.com Ltd. has a 12 month low of $51.60 and a 12 month high of $190.93. The firm has a market cap of $3.12 billion, a PE ratio of -68.54, a PEG ratio of 2.30 and a beta of 1.01.

Wix.com (NASDAQ:WIX - Get Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The information services provider reported $0.68 EPS for the quarter, missing analysts' consensus estimates of $1.21 by ($0.53). Wix.com had a negative net margin of 1.97% and a negative return on equity of 33.28%. The firm had revenue of $541.17 million for the quarter, compared to the consensus estimate of $544.04 million. During the same period in the previous year, the company posted $1.69 earnings per share. Wix.com's quarterly revenue was up 14.2% on a year-over-year basis. As a group, equities research analysts forecast that Wix.com Ltd. will post 1.52 earnings per share for the current fiscal year.

Wix.com declared that its Board of Directors has approved a share repurchase plan 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 shares through open market purchases. Shares buyback plans are typically an indication that the company's management believes its shares are undervalued.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.