Wix.com (NASDAQ:WIX) Sees Strong Trading Volume - Here's What Happened

Key Points

• Wix.com shares experienced a surge in trading volume, with 2,626,126 shares traded, marking a 157% increase from the previous session.
• Analysts have mixed views on Wix.com, with one firm lowering its price target from $250 to $200, while three analysts maintain a Strong Buy rating.
• The company reported earnings of $2.28 per share for the last quarter, surpassing estimates, and has launched a stock repurchase program allowing it to buy back $200 million in shares.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report) shares saw unusually-high trading volume on Tuesday . Approximately 2,626,126 shares were traded during mid-day trading, an increase of 157% from the previous session's volume of 1,020,491 shares.The stock last traded at $161.76 and had previously closed at $153.08.

Analyst Ratings Changes

A number of equities analysts recently issued reports on WIX shares. Royal Bank Of Canada reiterated an "outperform" rating and set a $210.00 price objective on shares of Wix.com in a research report on Tuesday, August 19th. Piper Sandler dropped their price target on shares of Wix.com from $262.00 to $225.00 and set an "overweight" rating for the company in a research note on Thursday, May 22nd. Scotiabank set a $255.00 price target on shares of Wix.com and gave the company a "sector outperform" rating in a research note on Thursday, August 7th. Zacks Research raised shares of Wix.com from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 20th. Finally, B. Riley reaffirmed a "buy" rating and set a $230.00 price target (down previously from $240.00) on shares of Wix.com in a research note on Wednesday, May 28th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Wix.com presently has an average rating of "Buy" and a consensus target price of $215.63.

Wix.com Stock Up 1.3%

The firm has a market capitalization of $9.63 billion, a P/E ratio of 61.08, a price-to-earnings-growth ratio of 3.26 and a beta of 1.30. The company's 50 day moving average is $142.69 and its 200-day moving average is $157.30.

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

Wix.com declared that its board has authorized a share repurchase plan on Monday, August 11th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the information services provider to repurchase up to 2.9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. Lone Pine Capital LLC bought a new position in shares of Wix.com during the second quarter valued at about $342,485,000. Acadian Asset Management LLC lifted its position in shares of Wix.com by 0.4% during the second quarter. Acadian Asset Management LLC now owns 2,119,805 shares of the information services provider's stock valued at $335,852,000 after purchasing an additional 7,729 shares in the last quarter. Senvest Management LLC increased its holdings in Wix.com by 32.2% during the second quarter. Senvest Management LLC now owns 2,040,910 shares of the information services provider's stock worth $323,403,000 after buying an additional 496,770 shares during the last quarter. Ameriprise Financial Inc. increased its holdings in Wix.com by 879.0% during the second quarter. Ameriprise Financial Inc. now owns 2,031,591 shares of the information services provider's stock worth $321,926,000 after buying an additional 1,824,070 shares during the last quarter. Finally, Lazard Asset Management LLC increased its holdings in Wix.com by 27.4% during the second quarter. Lazard Asset Management LLC now owns 1,542,153 shares of the information services provider's stock worth $244,368,000 after buying an additional 331,283 shares during the last quarter. 81.52% of the stock is owned by institutional investors.

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.