Wix.com (NASDAQ:WIX) Upgraded by Wall Street Zen to "Strong-Buy" Rating

Key Points

• Wix.com (NASDAQ:WIX) received an upgrade from Wall Street Zen, moving from a "buy" to a "strong-buy" rating, indicating increased confidence in the stock's potential performance.
• The company reported strong quarterly earnings, with an EPS of $2.28, surpassing analysts' expectations of $1.79, alongside a revenue increase of 12.4% year-over-year.
• Wix.com has initiated a stock buyback program authorized for up to $200 million, which is often viewed as a signal that management believes the stock is undervalued.

Wall Street Zen upgraded shares of Wix.com (NASDAQ:WIX - Free Report) from a buy rating to a strong-buy rating in a report issued on Friday.

WIX has been the topic of several other reports. Raymond James Financial reiterated a "strong-buy" rating on shares of Wix.com in a report on Thursday, August 7th. Zacks Research upgraded Wix.com from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 20th. Needham & Company LLC cut their price target on Wix.com from $250.00 to $200.00 and set a "buy" rating on the stock in a report on Wednesday, August 6th. UBS Group cut their price target on Wix.com from $230.00 to $200.00 and set a "buy" rating on the stock in a report on Thursday, August 7th. Finally, Robert W. Baird upgraded Wix.com from a "neutral" rating to an "outperform" rating and cut their price target for the company from $215.00 to $190.00 in a report on Friday, May 23rd. Three research 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 stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $215.63.

Wix.com Trading Up 9.1%

Shares of NASDAQ:WIX traded up $13.96 during midday trading on Friday, hitting $167.04. The company had a trading volume of 7,462,126 shares, compared to its average volume of 1,051,046. Wix.com has a 12 month low of $114.89 and a 12 month high of $247.11. The stock has a market cap of $9.37 billion, a price-to-earnings ratio of 59.45, a PEG ratio of 2.94 and a beta of 1.30. The firm has a fifty day simple moving average of $142.33 and a 200 day simple moving average of $157.90.

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 (EPS) for the quarter, topping the consensus estimate 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 negative return on equity of 136.43% and a net margin of 8.90%.The firm's revenue was up 12.4% on a year-over-year basis. During the same period last year, the company earned $1.67 EPS. Equities analysts forecast that Wix.com will post 3.65 EPS for the current fiscal year.

Wix.com declared that its Board of Directors has authorized a share repurchase program on Monday, August 11th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the information services provider to reacquire up to 2.9% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On Wix.com

A number of institutional investors have recently bought and sold shares of the business. Orion Porfolio Solutions LLC acquired a new position in shares of Wix.com in the second quarter valued at approximately $884,000. Munro Partners acquired a new position in shares of Wix.com in the second quarter valued at approximately $2,567,000. Liontrust Investment Partners LLP acquired a new position in shares of Wix.com in the second quarter valued at approximately $3,708,000. Headlands Technologies LLC boosted its stake in shares of Wix.com by 18.2% in the second quarter. Headlands Technologies LLC now owns 4,476 shares of the information services provider's stock valued at $709,000 after buying an additional 689 shares during the period. Finally, Tower Research Capital LLC TRC boosted its stake in shares of Wix.com by 508.6% in the second quarter. Tower Research Capital LLC TRC now owns 779 shares of the information services provider's stock valued at $123,000 after buying an additional 651 shares during the period. Institutional investors and hedge funds own 81.52% of the company's stock.

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.