Wix.com (NASDAQ:WIX) Sees Unusually-High Trading Volume - Should You Buy?

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 an uptick in trading volume on Tuesday . 2,626,126 shares traded hands 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

WIX has been the subject of a number of analyst reports. Needham & Company LLC lowered their price target on Wix.com from $250.00 to $200.00 and set a "buy" rating for the company in a research report on Wednesday, August 6th. Robert W. Baird raised Wix.com from a "neutral" rating to an "outperform" rating and decreased their price objective for the company from $215.00 to $190.00 in a report on Friday, May 23rd. JPMorgan Chase & Co. reduced their target price on Wix.com from $189.00 to $166.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 6th. Raymond James Financial reaffirmed a "strong-buy" rating on shares of Wix.com in a research note on Thursday, August 7th. Finally, Benchmark lowered their price target on Wix.com from $260.00 to $245.00 and set a "buy" rating on the stock in a report on Monday, May 19th. Three analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $215.63.

Wix.com Stock Up 6.8%

The stock has a market cap of $9.17 billion, a PE ratio of 58.16, a P/E/G ratio of 2.94 and a beta of 1.30. The business has a 50 day moving average price of $142.33 and a 200 day moving average price of $157.90.

Wix.com (NASDAQ:WIX - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The information services provider reported $2.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 the consensus estimate of $487.62 million. During the same quarter in the prior year, the business posted $1.67 earnings per share. Wix.com's revenue for the quarter was up 12.4% on a year-over-year basis. On average, research analysts predict that Wix.com Ltd. will post 3.65 earnings per share for the current fiscal year.

Wix.com declared that its board has approved a stock repurchase program on Monday, August 11th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the information services provider to purchase up to 2.9% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Institutional Trading of Wix.com

Institutional investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. increased its position 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 worth $28,000 after purchasing an additional 66 shares in the last quarter. Twin Tree Management LP acquired a new position in Wix.com in the 1st quarter valued at about $29,000. Geneos Wealth Management Inc. boosted its holdings in Wix.com by 632.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the information services provider's stock valued at $41,000 after purchasing an additional 215 shares in the last quarter. Blue Trust Inc. boosted its holdings in Wix.com by 47.8% in the 2nd quarter. Blue Trust Inc. now owns 408 shares of the information services provider's stock valued at $65,000 after purchasing an additional 132 shares in the last quarter. Finally, Penserra Capital Management LLC purchased a new stake in shares of Wix.com during the 2nd quarter worth approximately $77,000. 81.52% of the stock is owned by hedge funds and other 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.

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