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Scotiabank Issues Pessimistic Forecast for Wix.com (NASDAQ:WIX) Stock Price

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Key Points

  • Scotiabank cut its price target on Wix from $175 to $125 while keeping a "sector outperform" rating, a move that still implies roughly a 37% upside from the stock's prior close.
  • Wix announced a large capital‑return plan—a $2.0 billion buyback authorization and a modified Dutch‑auction tender to repurchase up to $1.75 billion—and reported a Q4 EPS beat with mid‑teens revenue guidance and expected low‑to‑mid‑20% FCF margins, supporting near‑term bullish catalysts.
  • The Street's consensus remains a "Moderate Buy" with an average price target of $151.45 versus the current share price near $91, indicating notable analyst upside despite recent target trims by several firms.
  • MarketBeat previews the top five stocks to own by May 1st.

Wix.com (NASDAQ:WIX - Get Free Report) had its target price reduced by analysts at Scotiabank from $175.00 to $125.00 in a research report issued on Thursday,Benzinga reports. The firm currently has a "sector outperform" rating on the information services provider's stock. Scotiabank's target price indicates a potential upside of 37.12% from the stock's previous close.

Other research analysts also recently issued reports about the company. Wells Fargo & Company cut their target price on Wix.com from $184.00 to $176.00 and set an "overweight" rating on the stock in a report on Friday, December 19th. Bank of America cut their price objective on Wix.com from $210.00 to $170.00 and set a "buy" rating on the stock in a research note on Wednesday, November 19th. Needham & Company LLC lowered their price target on shares of Wix.com from $140.00 to $115.00 and set a "buy" rating for the company in a report on Thursday. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $100.00 price objective on shares of Wix.com in a research note on Wednesday. Finally, B. Riley Financial restated a "buy" rating and issued a $200.00 target price (down from $230.00) on shares of Wix.com in a report on Thursday, November 20th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $151.45.

Read Our Latest Research Report on Wix.com

Wix.com Price Performance

NASDAQ WIX traded up $7.38 during trading hours on Thursday, reaching $91.16. The company's stock had a trading volume of 2,144,581 shares, compared to its average volume of 2,341,057. The firm has a fifty day simple moving average of $83.51 and a 200-day simple moving average of $116.16. Wix.com has a 52 week low of $60.22 and a 52 week high of $195.15. The stock has a market cap of $5.11 billion, a P/E ratio of 39.00, a P/E/G ratio of 2.31 and a beta of 1.39.

Wix.com (NASDAQ:WIX - Get Free Report) last announced its quarterly 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. The firm had revenue of $524.27 million during the quarter, compared to analysts' expectations of $527.69 million. Wix.com had a net margin of 7.20% and a negative return on equity of 102.59%. The company's revenue was up 13.9% on a year-over-year basis. During the same period in the prior year, the company posted $2.10 EPS. On average, research analysts expect that Wix.com will post 3.65 earnings per share for the current year.

Wix.com declared that its board has authorized a share repurchase program 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 repurchase up to 40.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On Wix.com

A number of hedge funds have recently added to or reduced their stakes in WIX. Westside Investment Management Inc. lifted its holdings in shares of Wix.com by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 154 shares of the information services provider's stock worth $27,000 after purchasing an additional 77 shares in the last quarter. Farther Finance Advisors LLC increased its position 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 worth $25,000 after acquiring an additional 132 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Wix.com by 632.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the information services provider's stock worth $41,000 after acquiring an additional 215 shares during the last quarter. Flagship Harbor Advisors LLC acquired a new stake in shares of Wix.com in the 4th quarter worth about $27,000. Finally, National Bank of Canada FI bought a new position in Wix.com in the 3rd quarter valued at about $54,000. Institutional investors and hedge funds own 81.52% of the company's stock.

Wix.com News Roundup

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

About Wix.com

(Get Free Report)

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.

Read More

Analyst Recommendations for Wix.com (NASDAQ:WIX)

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.

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