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

Key Points

• Wix.com shares gapped down at the open, falling from a prior close of $47.76 to $45.83 before trading around $47.58.
• Analysts remain mixed on the stock, with recent price target cuts from several firms, but the overall consensus is still “Moderate Buy” with an average target price of $96.75.
• The company’s latest earnings missed expectations, reporting $0.68 EPS versus $1.21 expected, though revenue rose 14.2% year over year to $541.17 million.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $47.76, but opened at $45.83. Wix.com shares last traded at $47.58, with a volume of 104,157 shares.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Scotiabank reissued an "outperform" rating on shares of Wix.com in a research report on Tuesday, June 9th. Bank of America reduced their price objective on shares of Wix.com from $136.00 to $109.00 and set a "buy" rating for the company in a research report on Tuesday, April 21st. Citigroup decreased their price objective on shares of Wix.com from $66.00 to $59.00 and set a "neutral" rating for the company in a research note on Tuesday, June 9th. Royal Bank Of Canada dropped their target price on shares of Wix.com from $60.00 to $45.00 and set a "sector perform" rating on the stock in a research report on Tuesday, June 9th. Finally, Oppenheimer cut their target price on Wix.com from $115.00 to $85.00 and set an "outperform" rating on the stock in a research note on Thursday, May 14th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $96.75.

Wix.com Stock Performance

The firm has a market capitalization of $2.81 billion, a PE ratio of -61.75 and a beta of 0.93. The business's 50 day moving average is $54.60 and its two-hundred day moving average is $73.55.

Wix.com (NASDAQ:WIX - Get Free Report) last issued its earnings results on Wednesday, May 13th. The information services provider reported $0.68 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.21 by ($0.53). Wix.com had a negative net margin of 1.97% and a negative return on equity of 33.28%. The business had revenue of $541.17 million for the quarter, compared to the consensus estimate of $544.04 million. During the same period in the previous year, the firm earned $1.69 EPS. The company's revenue was up 14.2% compared to the same quarter last year. As a group, equities research analysts predict that Wix.com Ltd. will post -0.17 EPS for the current year.

Institutional Trading of Wix.com

A number of institutional investors have recently added to or reduced their stakes in the stock. Farther Finance Advisors LLC grew its holdings in Wix.com by 122.2% during the 4th quarter. Farther Finance Advisors LLC now owns 240 shares of the information services provider's stock valued at $25,000 after buying an additional 132 shares in the last quarter. Flagship Harbor Advisors LLC bought a new position in shares of Wix.com in the fourth quarter valued at approximately $27,000. Geneos Wealth Management Inc. boosted its position in shares of Wix.com by 632.4% in the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the information services provider's stock valued at $41,000 after acquiring an additional 215 shares during the period. Employees Retirement System of Texas grew its stake in Wix.com by 129.9% during the fourth quarter. Employees Retirement System of Texas now owns 446 shares of the information services provider's stock valued at $46,000 after acquiring an additional 252 shares in the last quarter. Finally, Banque Cantonale Vaudoise grew its stake in Wix.com by 464.8% during the fourth quarter. Banque Cantonale Vaudoise now owns 497 shares of the information services provider's stock valued at $52,000 after acquiring an additional 409 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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