Morgan Stanley Issues Pessimistic Forecast for Wix.com (NASDAQ:WIX) Stock Price

Wix.com (NASDAQ:WIX) had its price target dropped by Morgan Stanley from $125.00 to $112.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has an “overweight” rating on the information services provider’s stock. Morgan Stanley’s target price indicates a potential upside of 104.87% from the company’s previous close.

A number of other analysts have also recently commented on the company. Robert W. Baird cut Wix.com from an “outperform” rating to a “neutral” rating and lowered their price target for the company from $115.00 to $90.00 in a research note on Monday, March 9th. JPMorgan Chase & Co. lowered their price target on Wix.com from $91.00 to $86.00 and set an “underweight” rating for the company in a research note on Wednesday, May 13th. Citizens Jmp cut Wix.com from a “market outperform” rating to a “market perform” rating in a research note on Tuesday, April 7th. UBS Group reissued a “neutral” rating and set a $68.00 target price on shares of Wix.com in a research note on Thursday. Finally, Piper Sandler began coverage on Wix.com in a research note on Thursday, March 12th. They set a “neutral” rating and a $98.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $100.90.

Wix.com Price Performance

Shares of WIX stock opened at $54.67 on Monday. The stock has a market cap of $3.19 billion, a PE ratio of -70.09, a price-to-earnings-growth ratio of 1.32 and a beta of 1.01. The stock has a 50-day moving average of $79.51 and a 200-day moving average of $90.96. Wix.com has a one year low of $51.60 and a one year high of $190.93.

Wix.com (NASDAQ:WIX) last announced its quarterly earnings results on Wednesday, May 13th. The information services provider reported $0.68 EPS for the quarter, missing analysts’ consensus estimates of $1.21 by ($0.53). The company had revenue of $541.17 million during the quarter, compared to the consensus estimate of $544.04 million. Wix.com had a negative net margin of 1.97% and a negative return on equity of 33.28%. The business’s revenue was up 14.2% compared to the same quarter last year. During the same period last year, the company earned $1.69 earnings per share. As a group, research analysts anticipate that Wix.com will post 1.52 earnings per share for the current year.

Wix.com declared that its Board of Directors has approved a share buyback program on Wednesday, January 28th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the information services provider to buy up to 40.5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Mediolanum International Funds Ltd lifted its stake in Wix.com by 65.9% in the third quarter. Mediolanum International Funds Ltd now owns 55,647 shares of the information services provider’s stock valued at $10,054,000 after buying an additional 22,112 shares during the period. Massachusetts Financial Services Co. MA acquired a new position in shares of Wix.com during the third quarter worth approximately $54,314,000. Principal Financial Group Inc. raised its position in shares of Wix.com by 2.6% during the third quarter. Principal Financial Group Inc. now owns 948,263 shares of the information services provider’s stock worth $168,446,000 after purchasing an additional 23,836 shares during the period. OVERSEA CHINESE BANKING Corp Ltd bought a new stake in Wix.com during the fourth quarter worth $4,087,000. Finally, Dream Peak Capital Ltd bought a new stake in Wix.com during the fourth quarter worth $1,500,000. Institutional investors own 81.52% of the company’s stock.

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.