Wix.com (NASDAQ:WIX) Reaches New 1-Year Low After Analyst Downgrade

Key Points

• Wix.com hit a new 52-week low after JPMorgan cut its price target from $91 to $86 and maintained an underweight rating, with the stock trading as low as $56.30 during the session.
• Despite the weak share performance, Wix recently reported strong Q1 results, including bookings up 15% year over year to $585 million and revenue up 14% to about $541 million.
• The company is also supporting shareholder value through a $2 billion buyback program, and it repurchased about 30% of outstanding shares in early April through its tender offer.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $91.00 to $86.00. JPMorgan Chase & Co. currently has an underweight rating on the stock. Wix.com traded as low as $56.30 and last traded at $52.5320, with a volume of 406068 shares changing hands. The stock had previously closed at $75.88.

A number of other research firms also recently weighed in on WIX. Jefferies Financial Group dropped their target price on Wix.com from $200.00 to $130.00 and set a "buy" rating for the company in a report on Monday, February 23rd. Bank of America dropped their target price on Wix.com from $136.00 to $109.00 and set a "buy" rating for the company in a report on Tuesday, April 21st. Weiss Ratings downgraded Wix.com from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday, March 6th. Citizens Jmp downgraded Wix.com from a "market outperform" rating to a "market perform" rating in a report on Tuesday, April 7th. Finally, UBS Group downgraded Wix.com from a "buy" rating to a "neutral" rating and dropped their target price for the stock from $145.00 to $96.00 in a report on Thursday, April 2nd. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $124.40.

Key Headlines Impacting Wix.com

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

• Positive Sentiment: Q1 bookings rose 15% year over year to $585 million, and revenue increased 14% to about $541 million, showing continued demand for Wix’s platform and products. Wix Reports First Quarter 2026 Results
• Positive Sentiment: Management highlighted momentum in new user cohorts, stronger Base44 performance, and new AI features such as Superagents and Harmony running on Wix’s proprietary AI model, which could support longer-term growth. Wix Reports First Quarter 2026 Results
• Positive Sentiment: Wix said it repurchased about 30% of its outstanding shares in early April through its tender program, a capital return move that may help support the stock over time. Wix Reports First Quarter 2026 Results

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Ameriprise Financial Inc. grew its position in Wix.com by 128.3% in the third quarter. Ameriprise Financial Inc. now owns 4,637,795 shares of the information services provider's stock valued at $823,813,000 after acquiring an additional 2,606,204 shares during the last quarter. Hsbc Holdings PLC grew its position in Wix.com by 11,894.0% in the first quarter. Hsbc Holdings PLC now owns 3,529,474 shares of the information services provider's stock valued at $318,676,000 after acquiring an additional 3,500,047 shares during the last quarter. Wellington Management Group LLP grew its position in Wix.com by 90.4% in the third quarter. Wellington Management Group LLP now owns 3,390,589 shares of the information services provider's stock valued at $602,270,000 after acquiring an additional 1,609,989 shares during the last quarter. Senvest Management LLC grew its position in Wix.com by 20.9% in the fourth quarter. Senvest Management LLC now owns 3,008,480 shares of the information services provider's stock valued at $312,551,000 after acquiring an additional 519,805 shares during the last quarter. Finally, Dorsal Capital Management LP grew its position in Wix.com by 50.0% in the third quarter. Dorsal Capital Management LP now owns 1,575,000 shares of the information services provider's stock valued at $279,767,000 after acquiring an additional 525,000 shares during the last quarter. Institutional investors own 81.52% of the company's stock.

Wix.com Price Performance

The stock has a 50-day simple moving average of $80.87 and a 200-day simple moving average of $92.77. The stock has a market cap of $3.33 billion, a P/E ratio of 70.77, a PEG ratio of 2.34 and a beta of 1.01.

Wix.com (NASDAQ:WIX - Get Free Report) last released its earnings results on Wednesday, March 4th. The information services provider reported $1.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.36 by $0.45. Wix.com had a negative return on equity of 70.04% and a net margin of 2.54%.The firm had revenue of $524.27 million for the quarter, compared to analysts' expectations of $527.69 million. During the same quarter in the previous year, the business posted $2.10 earnings per share. The business's revenue for the quarter was up 13.9% on a year-over-year basis. As a group, sell-side analysts forecast that Wix.com Ltd. will post 1.63 earnings per share for the current year.

Wix.com announced that its Board of Directors has approved a share buyback plan 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 plans are typically a sign that the company's management believes its stock is undervalued.

Wix.com Company Profile

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.

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