Wix.com (NASDAQ:WIX) Shares Up 9.7% - Here's What Happened

Key Points

• Wix shares jumped ~9.7% to about $70.05 on Wednesday, trading as high as $69.04 on only ~702,941 shares — roughly 74% below average session volume.
• Quarterly results showed an EPS beat of $1.81 vs. $1.36 expected while revenue was $524.27M (slightly below the $527.69M forecast); the company reported a slim net margin (2.54%) and a negative ROE (-70.04%).
• Management approved a $2.0 billion share buyback (up to ~40.5% of shares), and analysts still hold a consensus "Moderate Buy" with an average price target of $128.45.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report) traded up 9.7% during trading on Wednesday . The company traded as high as $69.04 and last traded at $70.0450. 702,941 shares traded hands during trading, a decline of 74% from the average session volume of 2,691,135 shares. The stock had previously closed at $63.84.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $100.00 price target on shares of Wix.com in a report on Wednesday, March 4th. Weiss Ratings downgraded shares of Wix.com from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday, March 6th. Royal Bank Of Canada cut their price target on Wix.com from $155.00 to $112.00 and set an "outperform" rating for the company in a report on Thursday, March 5th. Barclays decreased their price objective on Wix.com from $160.00 to $155.00 and set an "overweight" rating on the stock in a research note on Thursday, April 9th. Finally, Needham & Company LLC cut their target price on Wix.com from $140.00 to $115.00 and set a "buy" rating for the company in a research note on Thursday, March 5th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $128.45.

Wix.com Stock Up 10.3%

The company has a market capitalization of $4.11 billion, a P/E ratio of 86.98, a PEG ratio of 2.24 and a beta of 1.26. The company's 50-day moving average is $79.13 and its two-hundred day moving average is $101.46.

Wix.com (NASDAQ:WIX - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The information services provider reported $1.81 EPS for the quarter, topping analysts' consensus estimates of $1.36 by $0.45. Wix.com had a net margin of 2.54% and a negative return on equity of 70.04%. The business had revenue of $524.27 million during the quarter, compared to analysts' expectations of $527.69 million. During the same quarter in the previous year, the company earned $2.10 EPS. The business's quarterly revenue was up 13.9% compared to the same quarter last year. On average, sell-side analysts predict that Wix.com Ltd. will post 3.65 EPS for the current year.

Wix.com announced that its Board of Directors has initiated a stock buyback program on Wednesday, January 28th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the information services provider to reacquire up to 40.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Wix.com

Large investors have recently modified their holdings of the company. Westside Investment Management Inc. grew its position in Wix.com by 100.0% during the third quarter. Westside Investment Management Inc. now owns 154 shares of the information services provider's stock valued at $27,000 after acquiring an additional 77 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in shares of Wix.com by 7.6% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 1,707 shares of the information services provider's stock valued at $172,000 after purchasing an additional 120 shares during the last quarter. Farther Finance Advisors LLC grew its holdings in shares of 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 purchasing an additional 132 shares during the last quarter. Hennion & Walsh Asset Management Inc. lifted its stake in Wix.com by 2.2% in the fourth quarter. Hennion & Walsh Asset Management Inc. now owns 6,666 shares of the information services provider's stock worth $693,000 after purchasing an additional 142 shares during the last quarter. Finally, TD Private Client Wealth LLC boosted its position in Wix.com by 18.7% during the fourth quarter. TD Private Client Wealth LLC now owns 940 shares of the information services provider's stock valued at $98,000 after buying an additional 148 shares during the period. 81.52% of the stock is owned by hedge funds and other institutional investors.

About Wix.com

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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