Wix.com (NASDAQ:WIX) Stock Price Down 4.2% - Here's Why

Key Points

• Wix.com shares dropped 4.2% to $170.17 during mid-day trading, with a significant decrease in trading volume at 249,894 shares, compared to the average of 1,117,233 shares.
• Analysts have varying opinions on Wix.com, with Piper Sandler raising their price target to $210 and others lowering their targets, resulting in an average price target of $215.37 and an overall rating of "Buy".
• The company reported a quarterly earnings per share of $2.28, exceeding estimates, with total revenue reaching $489.93 million, a 12.4% increase year-over-year.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report)'s share price fell 4.2% during mid-day trading on Wednesday . The stock traded as low as $173.63 and last traded at $170.17. 249,894 shares changed hands during mid-day trading, a decline of 78% from the average session volume of 1,117,233 shares. The stock had previously closed at $177.63.

Analyst Upgrades and Downgrades

WIX has been the topic of a number of research analyst reports. Piper Sandler raised their price objective on shares of Wix.com from $206.00 to $210.00 and gave the company an "overweight" rating in a research note on Friday, September 26th. Needham & Company LLC lowered their target price on Wix.com from $250.00 to $200.00 and set a "buy" rating on the stock in a report on Wednesday, August 6th. Scotiabank set a $255.00 price target on shares of Wix.com and gave the stock a "sector outperform" rating in a research report on Thursday, August 7th. Raymond James Financial restated a "strong-buy" rating on shares of Wix.com in a research report on Thursday, August 7th. Finally, JMP Securities boosted their target price on shares of Wix.com from $200.00 to $210.00 and gave the stock a "market outperform" rating in a report on Tuesday, September 23rd. Three analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Buy" and an average price target of $215.37.

Wix.com Stock Performance

The stock has a market cap of $8.72 billion, a price-to-earnings ratio of 55.29, a price-to-earnings-growth ratio of 3.47 and a beta of 1.30. The business's 50 day moving average is $148.47 and its 200 day moving average is $156.82.

Wix.com (NASDAQ:WIX - Get Free Report) last posted its quarterly 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 period in the previous year, the firm earned $1.67 earnings per share. Wix.com's quarterly revenue was up 12.4% on a year-over-year basis. Research analysts expect that Wix.com Ltd. will post 3.65 earnings per share for the current year.

Wix.com announced that its board has initiated a share repurchase plan on Monday, August 11th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the information services provider to reacquire up to 2.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Wix.com

Several large investors have recently made changes to their positions in the company. Wealth Enhancement Advisory Services LLC lifted its stake in Wix.com by 8.5% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 2,468 shares of the information services provider's stock valued at $530,000 after acquiring an additional 193 shares during the last quarter. Versant Capital Management Inc boosted its holdings in Wix.com by 676.1% in the first quarter. Versant Capital Management Inc now owns 714 shares of the information services provider's stock worth $117,000 after purchasing an additional 622 shares in the last quarter. GAMMA Investing LLC raised its holdings in Wix.com by 12,771.4% during the first quarter. GAMMA Investing LLC now owns 69,763 shares of the information services provider's stock valued at $11,398,000 after buying an additional 69,221 shares in the last quarter. Hennion & Walsh Asset Management Inc. lifted its position in shares of Wix.com by 16.6% in the first quarter. Hennion & Walsh Asset Management Inc. now owns 6,339 shares of the information services provider's stock worth $1,036,000 after buying an additional 904 shares during the last quarter. Finally, Procyon Advisors LLC boosted its stake in shares of Wix.com by 5.1% during the 1st quarter. Procyon Advisors LLC now owns 1,385 shares of the information services provider's stock worth $226,000 after acquiring an additional 67 shares in the last quarter. Institutional investors 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.

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