Wix.com Ltd. (NASDAQ:WIX) Receives Average Rating of "Buy" from Analysts

Key Points

• Wix.com Ltd. has received a consensus rating of "Buy" from 23 brokerages, with an average price target of $215.37.
• The company has shown strong quarterly earnings with an EPS of $2.28, exceeding estimates, and reported a revenue increase of 12.4% year-over-year.
• Wix.com has authorized a $200 million stock repurchase program, indicating management's belief that the stock is undervalued.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report) has been given a consensus recommendation of "Buy" by the twenty-three brokerages that are presently covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a hold rating, seventeen have issued a buy rating and three have assigned a strong buy rating to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $215.3684.

Several analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Wix.com in a report on Wednesday. Cfra Research raised shares of Wix.com from a "hold" rating to a "moderate buy" rating in a report on Tuesday, August 12th. Wall Street Zen downgraded shares of Wix.com from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 13th. Wells Fargo & Company raised shares of Wix.com from an "equal weight" rating to an "overweight" rating and lifted their target price for the company from $173.00 to $216.00 in a report on Monday, June 16th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $210.00 target price on shares of Wix.com in a report on Tuesday, August 19th.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in WIX. Northwestern Mutual Wealth Management Co. grew its position in Wix.com by 63.5% during the first quarter. Northwestern Mutual Wealth Management Co. now owns 170 shares of the information services provider's stock worth $28,000 after buying an additional 66 shares during the period. Twin Tree Management LP acquired a new position in Wix.com during the first quarter worth about $29,000. Geneos Wealth Management Inc. grew its position in Wix.com by 632.4% during the first 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. Blue Trust Inc. grew its position in Wix.com by 47.8% during the second quarter. Blue Trust Inc. now owns 408 shares of the information services provider's stock worth $65,000 after buying an additional 132 shares during the period. Finally, Penserra Capital Management LLC acquired a new position in Wix.com during the second quarter worth about $77,000. 81.52% of the stock is currently owned by institutional investors and hedge funds.

Wix.com Stock Performance

NASDAQ WIX opened at $138.72 on Friday. The firm has a market cap of $7.78 billion, a PE ratio of 49.37, a P/E/G ratio of 2.52 and a beta of 1.32. Wix.com has a one year low of $114.89 and a one year high of $247.11. The firm's fifty day moving average is $148.14 and its two-hundred day moving average is $155.65.

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

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

Wix.com Company Profile

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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