Wix.com (NASDAQ:WIX) Stock Price Down 5.1% – What’s Next?

Wix.com Ltd. (NASDAQ:WIX) shares were down 5.1% during mid-day trading on Monday. The stock traded as low as $72.71 and last traded at $72.2460. Approximately 167,680 shares traded hands during trading, a decline of 91% from the average daily volume of 1,913,123 shares. The stock had previously closed at $76.09.

Wix.com News Roundup

Here are the key news stories impacting Wix.com this week:

• Positive Sentiment: Third-quarter revenue rose 12.9% year over year to $570.17 million, while earnings of $1.42 per share topped analyst estimates. Wix tops Q3 earnings and revenue estimates
• Positive Sentiment: AI website-building platform Base44 is showing traction: annual recurring revenue approached $250 million within two years of its acquisition, and its third-quarter non-GAAP gross margin was nearly 60%. Wix.com: 3 key takeaways for long-term investors
• Neutral Sentiment: Cantor Fitzgerald lowered its price target from $90 to $80 but maintained an Overweight rating, suggesting it still sees potential upside. Cantor Fitzgerald price target update
• Negative Sentiment: Wix cut its cash-flow margin outlook as it plans greater investment in AI and marketing. Reports also point to slower sales growth in its core business, tempering the positive quarterly results. Wix increases AI spending and cuts cash-flow outlook Base44 growth and slower core sales
• Negative Sentiment: Bank of America downgraded WIX to Underperform from Buy and cut its target to $68 from $75. JPMorgan also lowered its target, to $59 from $62, and maintained an Underweight rating. Analyst downgrades JPMorgan lowers Wix price target

Wall Street Analyst Weigh In

Several research analysts recently weighed in on WIX shares. Citigroup reaffirmed a “neutral” rating on shares of Wix.com in a research report on Wednesday, August 12th. Weiss Ratings raised Wix.com from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, September 11th. Morgan Stanley lowered shares of Wix.com from an “overweight” rating to an “equal weight” rating and lowered their target price for the company from $112.00 to $60.00 in a research note on Tuesday, July 21st. Wedbush cut their price objective on shares of Wix.com from $80.00 to $75.00 and set a “neutral” rating on the stock in a research report on Tuesday. Finally, Cantor Fitzgerald lowered their price objective on shares of Wix.com from $90.00 to $80.00 and set an “overweight” rating on the stock in a research note on Wednesday. Ten investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $88.48.

Wix.com Stock Performance

The firm has a market cap of $3.88 billion, a price-to-earnings ratio of -18.75, a price-to-earnings-growth ratio of 33.15 and a beta of 1.06. The firm’s 50 day moving average is $76.88 and its 200-day moving average is $70.32.

Wix.com (NASDAQ:WIX) last issued its quarterly earnings data on Tuesday, November 10th. The information services provider reported $1.42 EPS for the quarter, beating analysts’ consensus estimates of $1.40 by $0.02. Wix.com had a negative return on equity of 1.61% and a negative net margin of 8.19%. The business had revenue of $570.17 million for the quarter, compared to analyst estimates of $566.27 million. During the same quarter in the prior year, the firm posted $1.80 EPS. The firm’s revenue for the quarter was up 12.9% on a year-over-year basis. As a group, research analysts predict that Wix.com Ltd. will post 0.24 EPS for the current year.

Insider Buying and Selling

In other Wix.com news, CEO Avishai Abrahami purchased 654 shares of the company’s stock in a transaction on Monday, August 31st. The shares were bought at an average cost of $59.89 per share, with a total value of $39,168.06. Following the transaction, the chief executive officer directly owned 486,225 shares in the company, valued at approximately $29,120,015.25. This represents a 0.13% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO Lior Shemesh bought 456 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The shares were bought at an average price of $59.89 per share, with a total value of $27,309.84. Following the completion of the purchase, the chief financial officer owned 221,567 shares in the company, valued at approximately $13,269,647.63. The trade was a 0.21% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders purchased 2,622 shares of company stock worth $157,032. 6.20% of the stock is currently owned by company insiders.

Institutional Trading of Wix.com

Several institutional investors have recently made changes to their positions in WIX. Farther Finance Advisors LLC increased its holdings in Wix.com by 74.1% during the 3rd quarter. Farther Finance Advisors LLC now owns 416 shares of the information services provider’s stock valued at $30,000 after purchasing an additional 177 shares in the last quarter. Versant Capital Management Inc raised its position in shares of Wix.com by 537.6% during the 3rd quarter. Versant Capital Management Inc now owns 542 shares of the information services provider’s stock valued at $39,000 after acquiring an additional 457 shares during the last quarter. State of Alaska Department of Revenue acquired a new stake in shares of Wix.com in the 3rd quarter valued at approximately $173,000. Signaturefd LLC raised its holdings in Wix.com by 78.9% in the third quarter. Signaturefd LLC now owns 2,877 shares of the information services provider’s stock worth $208,000 after purchasing an additional 1,269 shares during the period. Finally, Lombard Odier Asset Management USA Corp bought a new position in Wix.com during the first quarter worth about $210,000. 81.52% of the stock is currently owned by institutional investors and hedge funds.

Wix.com Company Profile

Wix.com Ltd. is a cloud-based platform that enables individuals, businesses and organizations to create and manage websites. Its tools include customizable templates, a visual website editor and hosting, allowing users to build sites without advanced coding skills or develop more customized experiences. The company also offers services for online businesses, including e-commerce features, appointment booking, payments, marketing tools and website analytics. Its products are designed to help customers manage multiple aspects of their online presence through one platform.