Wix.com (NASDAQ:WIX) Downgraded by Wall Street Zen to "Buy"

Key Points

• Wix.com was downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, indicating a shift in analyst sentiment regarding the stock's performance.
• The company reported a quarterly earnings per share of $2.28, surpassing analysts' expectations, with a year-over-year revenue increase of 12.4%.
• Wix.com has initiated a $200 million share buyback program, which reflects confidence from its Board of Directors in the company's undervalued stock status.

Wall Street Zen downgraded shares of Wix.com (NASDAQ:WIX - Free Report) from a strong-buy rating to a buy rating in a research report released on Saturday.

Other research analysts have also issued reports about the company. Bank of America cut their price objective on Wix.com from $270.00 to $230.00 and set a "buy" rating on the stock in a research report on Wednesday, May 21st. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $200.00 target price on shares of Wix.com in a research report on Wednesday, June 18th. Barclays set a $235.00 target price on Wix.com and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Piper Sandler dropped their target price on Wix.com from $262.00 to $225.00 and set an "overweight" rating on the stock in a research report on Thursday, May 22nd. Finally, Scotiabank set a $255.00 target price on Wix.com and gave the stock a "sector outperform" rating in a research report on Thursday, August 7th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $215.63.

Wix.com Trading Up 1.3%

NASDAQ:WIX traded up $2.31 during mid-day trading on Friday, hitting $183.30. The company had a trading volume of 2,939,899 shares, compared to its average volume of 2,020,907. The business has a fifty day simple moving average of $144.17 and a 200-day simple moving average of $157.05. Wix.com has a 1 year low of $114.89 and a 1 year high of $247.11. The firm has a market capitalization of $10.28 billion, a price-to-earnings ratio of 65.23, a PEG ratio of 3.48 and a beta of 1.30.

Wix.com (NASDAQ:WIX - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The information services provider reported $2.28 EPS for the quarter, beating 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 analyst estimates of $487.62 million. During the same period last year, the company posted $1.67 earnings per share. The firm's revenue was up 12.4% compared to the same quarter last year. As a group, research analysts anticipate that Wix.com will post 3.65 earnings per share for the current year.

Wix.com declared that its board has approved a stock buyback plan on Monday, August 11th that authorizes the company to buyback $200.00 million in shares. This buyback authorization authorizes the information services provider to purchase up to 2.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Wix.com

Several institutional investors have recently made changes to their positions in WIX. Northwestern Mutual Wealth Management Co. grew its holdings in shares of 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 valued at $28,000 after purchasing an additional 66 shares during the last quarter. Twin Tree Management LP acquired a new position in shares of Wix.com during the first quarter worth approximately $29,000. Geneos Wealth Management Inc. boosted its position 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 worth $41,000 after buying an additional 215 shares during the period. Blue Trust Inc. boosted its position in shares of 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 shares of Wix.com during the second quarter worth approximately $77,000. 81.52% of the stock is 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.