Wix.com (NASDAQ:WIX) Shares Gap Down - What's Next?

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.

Shares of Wix.com Ltd. (NASDAQ:WIX - Get Free Report) 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 traded.

Analysts Set New Price Targets

Several brokerages have weighed in on WIX. Barclays set a $235.00 target price on Wix.com and gave the stock an "overweight" rating in a report on Thursday, August 7th. Royal Bank Of Canada restated an "outperform" rating and set a $210.00 price objective on shares of Wix.com in a research note on Tuesday, August 19th. Cfra Research upgraded Wix.com from a "hold" rating to a "moderate buy" rating in a research note on Tuesday, August 12th. Wall Street Zen cut Wix.com from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 13th. Finally, Needham & Company LLC decreased their price objective on Wix.com from $250.00 to $200.00 and set a "buy" rating for the company in a research note on Wednesday, August 6th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Buy" and an average price target of $215.63.

Wix.com Stock Up 1.2%

The business has a 50 day simple moving average of $145.46 and a 200 day simple moving average of $156.50. The company has a market capitalization of $10.34 billion, a PE ratio of 65.57, a PEG ratio of 3.50 and a beta of 1.30.

Wix.com (NASDAQ:WIX - Get Free Report) last announced 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. The business had revenue of $489.93 million for the quarter, compared to analyst estimates of $487.62 million. Wix.com had a negative return on equity of 136.43% and a net margin of 8.90%.The company's revenue was up 12.4% on a year-over-year basis. During the same period in the prior year, the company earned $1.67 earnings per share. Equities analysts expect that Wix.com Ltd. will post 3.65 EPS for the current fiscal year.

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

Institutional Trading of Wix.com

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Mirae Asset Global Investments Co. Ltd. grew its holdings in Wix.com by 31.8% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,989 shares of the information services provider's stock worth $830,000 after acquiring an additional 1,204 shares during the period. Harbor Capital Advisors Inc. grew its holdings in Wix.com by 5.8% during the second quarter. Harbor Capital Advisors Inc. now owns 32,720 shares of the information services provider's stock worth $5,185,000 after acquiring an additional 1,794 shares during the period. Yousif Capital Management LLC grew its holdings in Wix.com by 4.9% during the first quarter. Yousif Capital Management LLC now owns 1,833 shares of the information services provider's stock worth $299,000 after acquiring an additional 85 shares during the period. Janney Montgomery Scott LLC purchased a new position in Wix.com during the first quarter worth approximately $5,367,000. Finally, Goldman Sachs Group Inc. boosted its position in Wix.com by 25.8% during the first quarter. Goldman Sachs Group Inc. now owns 761,566 shares of the information services provider's stock worth $124,425,000 after purchasing an additional 155,977 shares in the last quarter. 81.52% of the stock is owned by institutional investors and hedge funds.

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.