Weiss Ratings Reaffirms "Hold (C)" Rating for Wix.com (NASDAQ:WIX)

Key Points

• Weiss Ratings has reaffirmed a "Hold (C)" rating for Wix.com, reflecting a cautious outlook on the stock.
• The consensus target price for Wix.com shares is currently $215.37, based on an average rating of "Buy" from analysts.
• Wix.com announced a $200 million share buyback plan, indicating that the company believes its shares are undervalued.

Wix.com (NASDAQ:WIX - Get Free Report)'s stock had its "hold (c)" rating restated by research analysts at Weiss Ratings in a research note issued on Wednesday,Weiss Ratings reports.

A number of other analysts have also commented on WIX. Wall Street Zen lowered Wix.com from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 13th. Citigroup reaffirmed an "outperform" rating on shares of Wix.com in a research note on Tuesday, September 23rd. Barclays set a $235.00 price target on Wix.com and gave the stock an "overweight" rating in a research note on Thursday, August 7th. JPMorgan Chase & Co. decreased their price target on Wix.com from $189.00 to $166.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 6th. Finally, Wells Fargo & Company upgraded Wix.com from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $173.00 to $216.00 in a report on Monday, June 16th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus target price of $215.37.

Wix.com Stock Performance

NASDAQ WIX traded down $2.07 on Wednesday, reaching $135.97. The stock had a trading volume of 861,999 shares, compared to its average volume of 1,160,606. Wix.com has a 12-month low of $114.89 and a 12-month high of $247.11. The business's 50-day moving average price is $148.17 and its 200 day moving average price is $156.03. The stock has a market cap of $7.63 billion, a P/E ratio of 48.48, a price-to-earnings-growth ratio of 2.73 and a beta of 1.32.

Wix.com (NASDAQ:WIX - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The information services provider reported $2.28 EPS for the quarter, topping the consensus estimate of $1.79 by $0.49. The business had revenue of $489.93 million during the quarter, compared to analysts' expectations of $487.62 million. Wix.com had a negative return on equity of 136.43% and a net margin of 8.90%.The company's quarterly revenue was up 12.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.67 earnings per share. On average, sell-side analysts predict that Wix.com will post 3.65 earnings per share for the current year.

Wix.com announced that its Board of Directors has authorized a share repurchase plan on Monday, August 11th that allows the company to buyback $200.00 million in shares. This buyback authorization allows the information services provider to reacquire up to 2.9% of its stock through open market purchases. Stock buyback plans are often an indication that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On Wix.com

A number of institutional investors have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Wix.com by 63.5% in the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 170 shares of the information services provider's stock valued at $28,000 after acquiring an additional 66 shares during the last quarter. Smartleaf Asset Management LLC increased its holdings in shares of Wix.com by 8.9% in the 1st quarter. Smartleaf Asset Management LLC now owns 966 shares of the information services provider's stock valued at $161,000 after acquiring an additional 79 shares during the last quarter. Yousif Capital Management LLC boosted its position in Wix.com by 4.9% during the 1st quarter. Yousif Capital Management LLC now owns 1,833 shares of the information services provider's stock valued at $299,000 after purchasing an additional 85 shares during the period. Signaturefd LLC boosted its position in Wix.com by 3.3% during the 1st quarter. Signaturefd LLC now owns 3,402 shares of the information services provider's stock valued at $556,000 after purchasing an additional 109 shares during the period. Finally, Advisors Asset Management Inc. boosted its position in Wix.com by 28.4% during the 1st quarter. Advisors Asset Management Inc. now owns 493 shares of the information services provider's stock valued at $81,000 after purchasing an additional 109 shares during the period. 81.52% of the stock is currently owned by institutional investors.

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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