Wix.com (NASDAQ:WIX) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Wix.com shares experienced a significant price jump, opening at $144.25 after closing at $128.09, due to a stronger than expected earnings report which showed $2.28 earnings per share against an estimate of $1.79.
• The company's revenue for the quarter reached $489.93 million, surpassing analyst expectations, and marking a 12.4% increase compared to the same quarter last year.
• Wix.com has garnered a positive outlook from analysts, with a consensus rating of "Buy" and a target price averaging $228.95, amid increased institutional investor interest.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report)'s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $128.09, but opened at $144.25. Wix.com shares last traded at $139.91, with a volume of 604,660 shares trading hands.

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 net margin of 8.90% and a negative return on equity of 129.27%. The company's revenue was up 12.4% on a year-over-year basis. During the same period last year, the business earned $1.67 EPS.

Analyst Ratings Changes

Several equities analysts have commented on WIX shares. Needham & Company LLC dropped their price target on shares of Wix.com from $250.00 to $200.00 and set a "buy" rating on the stock in a research note on Wednesday. Barclays dropped their target price on shares of Wix.com from $240.00 to $235.00 and set an "overweight" rating on the stock in a research report on Thursday. Wall Street Zen cut shares of Wix.com from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Benchmark dropped their price objective on Wix.com from $260.00 to $245.00 and set a "buy" rating on the stock in a report on Monday, May 19th. Finally, Baird R W raised Wix.com from a "hold" rating to a "strong-buy" rating in a report on Friday, May 23rd. Two investment analysts have rated the stock with a hold rating, eighteen have issued a buy rating and three have assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and an average target price of $218.26.

Hedge Funds Weigh In On Wix.com

A number of institutional investors and hedge funds have recently bought and sold shares of WIX. Acadian Asset Management LLC boosted its position in Wix.com by 0.4% in the 2nd quarter. Acadian Asset Management LLC now owns 2,119,805 shares of the information services provider's stock valued at $335,852,000 after buying an additional 7,729 shares during the last quarter. Dorsal Capital Management LP boosted its holdings in Wix.com by 1.8% in the fourth quarter. Dorsal Capital Management LP now owns 1,425,000 shares of the information services provider's stock valued at $305,734,000 after purchasing an additional 25,000 shares during the last quarter. Senvest Management LLC grew its stake in Wix.com by 27.3% during the 4th quarter. Senvest Management LLC now owns 1,422,793 shares of the information services provider's stock valued at $305,260,000 after purchasing an additional 304,712 shares in the last quarter. Whale Rock Capital Management LLC grew its stake in Wix.com by 55.1% during the 4th quarter. Whale Rock Capital Management LLC now owns 1,071,565 shares of the information services provider's stock valued at $229,904,000 after purchasing an additional 380,800 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in Wix.com by 25.8% during the 1st 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 during the last quarter. Hedge funds and other institutional investors own 81.52% of the company's stock.

Wix.com Trading Down 1.3%

The company has a market capitalization of $7.39 billion, a price-to-earnings ratio of 46.76, a price-to-earnings-growth ratio of 2.05 and a beta of 1.27. The stock has a 50-day simple moving average of $152.44 and a 200-day simple moving average of $173.37.

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.