Wix.com (NASDAQ:WIX) Shares Gap Down - Time to Sell?

Key Points

• Wix.com Ltd. shares experienced a significant gap down, opening at $177.89 after closing at $183.30, with a last traded price of $180.48.
• The company reported earnings of $2.28 per share for the last quarter, exceeding analysts' expectations of $1.79, and recorded a revenue increase of 12.4% compared to the previous year.
• Wix.com has initiated a $200 million stock buyback program, indicating the board's belief that the shares are undervalued; analysts currently maintain an average rating of "Buy" with a target price of $215.63.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report)'s stock price gapped down prior to trading on Friday . The stock had previously closed at $183.30, but opened at $177.89. Wix.com shares last traded at $180.48, with a volume of 386,485 shares changing hands.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on WIX. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $210.00 price objective on shares of Wix.com in a research report on Tuesday, August 19th. Zacks Research upgraded shares of Wix.com from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 20th. JPMorgan Chase & Co. dropped their price target on shares of Wix.com from $189.00 to $166.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 6th. B. Riley restated a "buy" rating and set a $230.00 price objective (down previously from $240.00) on shares of Wix.com in a research report on Wednesday, May 28th. Finally, UBS Group cut their price objective on Wix.com from $230.00 to $200.00 and set a "buy" rating on the stock in a report on Thursday, August 7th. Three 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, the stock has an average rating of "Buy" and a consensus price target of $215.63.

Wix.com Stock Down 0.6%

The firm has a fifty day moving average of $144.76 and a 200-day moving average of $156.52. The firm has a market cap of $10.22 billion, a P/E ratio of 64.81, a PEG ratio of 3.50 and a beta of 1.30.

Wix.com (NASDAQ:WIX - Get Free Report) last released its earnings results on Wednesday, August 6th. The information services provider reported $2.28 earnings per share 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 firm had revenue of $489.93 million for the quarter, compared to analyst estimates of $487.62 million. During the same quarter in the prior year, the firm posted $1.67 earnings per share. The company's quarterly revenue was up 12.4% on a year-over-year basis. Sell-side analysts anticipate that Wix.com Ltd. will post 3.65 EPS for the current year.

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

Institutional Investors Weigh In On Wix.com

A number of hedge funds have recently modified their holdings of WIX. Vident Advisory LLC acquired a new stake in shares of Wix.com during the fourth quarter worth about $219,000. USS Investment Management Ltd raised its position in shares of Wix.com by 12.5% during the fourth quarter. USS Investment Management Ltd now owns 10,404 shares of the information services provider's stock worth $2,232,000 after purchasing an additional 1,157 shares during the period. JT Stratford LLC acquired a new stake in shares of Wix.com during the fourth quarter worth about $218,000. Mackenzie Financial Corp raised its position in shares of Wix.com by 211.0% during the fourth quarter. Mackenzie Financial Corp now owns 29,395 shares of the information services provider's stock worth $6,307,000 after purchasing an additional 19,943 shares during the period. Finally, Wealth Enhancement Advisory Services LLC raised its position in shares of Wix.com by 8.5% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 2,468 shares of the information services provider's stock worth $530,000 after purchasing an additional 193 shares during the period. Institutional investors and hedge funds own 81.52% of the company's stock.

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.