Wix.com (NASDAQ:WIX) Shares Gap Down - Here's What Happened

Key Points

• Wix.com shares gapped down on Tuesday, opening at $50.74 after closing at $53.36 the previous day and last trading near $51.59, a drop of about 2.1%.
• Several analysts have turned more cautious on the stock, with firms including RBC, JPMorgan, and Morgan Stanley cutting price targets and, in some cases, lowering ratings. The consensus rating is now Hold with a consensus target of $94.10.
• The move comes after Wix reported weaker-than-expected earnings for the latest quarter, missing EPS estimates by a wide margin even though revenue rose 14.2% year over year. The company also has negative margins and is expected to post a small loss for the current fiscal year.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $53.36, but opened at $50.74. Wix.com shares last traded at $51.5910, with a volume of 115,997 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Royal Bank Of Canada lowered their price target on shares of Wix.com from $60.00 to $45.00 and set a "sector perform" rating on the stock in a report on Tuesday, June 9th. JPMorgan Chase & Co. decreased their price objective on Wix.com from $86.00 to $62.00 and set an "underweight" rating for the company in a report on Thursday, June 18th. Citizens Jmp downgraded Wix.com from a "market outperform" rating to a "market perform" rating in a research note on Tuesday, April 7th. Morgan Stanley lowered Wix.com from an "overweight" rating to an "equal weight" rating and dropped their target price for the stock from $112.00 to $60.00 in a report on Tuesday. Finally, Bank of America reduced their price target on Wix.com from $136.00 to $109.00 and set a "buy" rating for the company in a research report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $94.10.

Wix.com Stock Down 2.1%

The company's 50-day moving average is $50.51 and its 200 day moving average is $70.56. The company has a market cap of $3.05 billion, a price-to-earnings ratio of -66.84 and a beta of 0.93.

Wix.com (NASDAQ:WIX - Get Free Report) last issued its quarterly earnings data on Wednesday, May 13th. The information services provider reported $0.68 earnings per share for the quarter, missing analysts' consensus estimates of $1.21 by ($0.53). Wix.com had a negative return on equity of 33.28% and a negative net margin of 1.97%.The firm had revenue of $541.17 million during the quarter, compared to analyst estimates of $544.04 million. During the same quarter last year, the company posted $1.69 EPS. The company's revenue was up 14.2% on a year-over-year basis. Analysts predict that Wix.com Ltd. will post -0.17 EPS for the current fiscal year.

Hedge Funds Weigh In On Wix.com

A number of hedge funds have recently bought and sold shares of WIX. OVERSEA CHINESE BANKING Corp Ltd purchased a new position in Wix.com in the 4th quarter valued at $4,087,000. Dream Peak Capital Ltd purchased a new stake in shares of Wix.com during the fourth quarter worth $1,500,000. Massachusetts Financial Services Co. MA raised its position in shares of Wix.com by 70.3% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 520,633 shares of the information services provider's stock valued at $54,089,000 after buying an additional 214,864 shares during the last quarter. SG Americas Securities LLC raised its position in shares of Wix.com by 139.7% in the fourth quarter. SG Americas Securities LLC now owns 952,803 shares of the information services provider's stock valued at $98,987,000 after buying an additional 555,305 shares during the last quarter. Finally, Principal Financial Group Inc. lifted its stake in shares of Wix.com by 47.4% in the fourth quarter. Principal Financial Group Inc. now owns 1,397,962 shares of the information services provider's stock worth $145,238,000 after buying an additional 449,699 shares in the last quarter. Hedge funds and other institutional investors own 81.52% of the company's stock.

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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