Wix.com (NASDAQ:WIX) Stock Price Down 7.4% Following Analyst Downgrade

Key Points

• WIX shares fell 7.4% intraday to about $75 after Citizens Jmp downgraded the stock, with roughly 2.09 million shares trading—about 21% below the stock's average daily volume.
• Despite recent downgrades and multiple price-target cuts, analysts maintain a consensus rating of "Moderate Buy" with an average price target of $128.70, well above the current share price.
• Fundamentals show a mixed picture: the company beat EPS estimates ($1.81 vs. $1.36) but revenue slightly missed at $524.27M, and management has authorized a substantial $2.0 billion share buyback (up to 40.5% of shares).

Wix.com Ltd. (NASDAQ:WIX - Get Free Report)'s share price dropped 7.4% during mid-day trading on Wednesday after Citizens Jmp downgraded the stock from a market outperform rating to a market perform rating. The company traded as low as $75.66 and last traded at $75.0050. Approximately 2,087,885 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 2,645,672 shares. The stock had previously closed at $80.99.

Several other analysts have also commented on WIX. Cantor Fitzgerald reiterated an "overweight" rating and set a $130.00 price objective on shares of Wix.com in a report on Thursday, March 5th. Jefferies Financial Group cut their price objective on shares of Wix.com from $200.00 to $130.00 and set a "buy" rating on the stock in a report on Monday, February 23rd. Royal Bank Of Canada dropped their target price on shares of Wix.com from $155.00 to $112.00 and set an "outperform" rating on the stock in a research report on Thursday, March 5th. JPMorgan Chase & Co. cut shares of Wix.com from a "neutral" rating to an "underweight" rating and decreased their price target for the stock from $114.00 to $91.00 in a report on Friday, March 27th. Finally, Benchmark reduced their target price on Wix.com from $185.00 to $140.00 and set a "buy" rating for the company in a research note on Monday, March 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $128.70.

Institutional Trading of Wix.com

Several institutional investors have recently modified their holdings of WIX. Rockefeller Capital Management L.P. increased its stake in Wix.com by 17.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,741 shares of the information services provider's stock worth $285,000 after buying an additional 410 shares in the last quarter. Corient Private Wealth LLC raised its stake in Wix.com by 43.5% in the 4th quarter. Corient Private Wealth LLC now owns 6,548 shares of the information services provider's stock valued at $680,000 after purchasing an additional 1,985 shares during the last quarter. Avory & Company LLC purchased a new position in Wix.com in the 4th quarter valued at $359,000. Alberta Investment Management Corp acquired a new stake in Wix.com during the 4th quarter worth $1,039,000. Finally, Mackenzie Financial Corp grew its holdings in shares of Wix.com by 61.2% during the fourth quarter. Mackenzie Financial Corp now owns 16,773 shares of the information services provider's stock worth $1,731,000 after buying an additional 6,366 shares in the last quarter. Institutional investors and hedge funds own 81.52% of the company's stock.

Wix.com Stock Down 8.1%

The firm has a market capitalization of $4.34 billion, a price-to-earnings ratio of 92.44, a PEG ratio of 2.82 and a beta of 1.26. The stock's 50-day moving average price is $81.02 and its 200 day moving average price is $105.40.

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

Wix.com announced that its Board of Directors has initiated a share buyback plan on Wednesday, January 28th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the information services provider to buy up to 40.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

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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