Wix.com (NASDAQ:WIX) Approves Stock Buyback Program

Key Points

• Wix.com has initiated a stock buyback program, planning to repurchase $200 million worth of shares, which constitutes about 2.9% of its shares outstanding, indicating management's belief that the stock is undervalued.
• Recent analyst ratings show a general optimism towards the stock, with 18 "buy" ratings and a reduced average target price now set at $213.53.
• During the latest trading session, Wix.com shares fell to $115.43, reflecting a significant decline in stock price compared to its 52-week high of $247.11.

Wix.com (NASDAQ:WIX - Get Free Report) announced that its board has initiated a stock buyback program on Monday, August 11th, RTT News reports. The company plans to buyback $200.00 million in shares. This buyback authorization permits the information services provider to repurchase up to 2.9% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's management believes its shares are undervalued.

Analyst Ratings Changes

WIX has been the topic of a number of recent analyst reports. Citigroup dropped their price target on shares of Wix.com from $280.00 to $238.00 and set a "buy" rating on the stock in a research note on Friday, April 25th. Royal Bank Of Canada decreased their target price on shares of Wix.com from $245.00 to $210.00 and set an "outperform" rating on the stock in a research report on Thursday, May 22nd. Oppenheimer cut their price target on shares of Wix.com from $250.00 to $220.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 30th. Scotiabank set a $255.00 target price on shares of Wix.com and gave the company a "sector outperform" rating in a research note on Thursday. Finally, Wells Fargo & Company raised shares of Wix.com from an "equal weight" rating to an "overweight" rating and lifted their price target for the stock from $173.00 to $216.00 in a research note on Monday, June 16th. Two investment analysts have rated the stock with a hold rating, eighteen have issued a buy rating and three have given a strong buy rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Buy" and an average target price of $213.53.

Wix.com Price Performance

Shares of NASDAQ WIX traded down $7.42 during mid-day trading on Monday, reaching $115.43. The company's stock had a trading volume of 1,888,073 shares, compared to its average volume of 1,250,584. The firm has a market capitalization of $6.48 billion, a PE ratio of 41.08, a P/E/G ratio of 1.97 and a beta of 1.27. Wix.com has a 52 week low of $114.89 and a 52 week high of $247.11. The stock has a fifty day moving average of $151.25 and a two-hundred day moving average of $170.86.

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

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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